Star Entertainment Group to reimburse wages of AU$13 million

Star Entertainment Group to reimburse wages of AU$13 million

The Star Entertainment Group has agreed to pay AU$13 million to current and past salaried employees following the discovery of an underpayment during a six-year retroactive wage review. 

Star Entertainment begins the reimbursement process

The real-money casino and entertainment operator said the process of properly resolving all impacted team members has begun. It was determined that people were not ‘better off overall’ since their annual income did not compensate for equal award rights such as overtime and penalty rates.

The Star expects to make a provision of about AU$13 million in its 1H FY2022 accounts for the projected cost of remediation during the review period. This provision comprises expected back payments, interest, and, where appropriate, superannuation contributions.

The Star, which has notified the Fair Work Ombudsman and the United Workers Union, notes that over the same six-year period, its staff earned nearly AU$3.3 billion. Matt Bekier, Managing Director and Chief Executive Officer of The Star Entertainment Group, apologized to any team members impacted by the payment deficit and indicated that they are committed to doing the right thing by operating honestly. Their first priority is to handle this situation and prevent it from reoccurring.

Additionally, the Brisbane-based business offered an update on its earnings for the first half of FY2022, which it says have been “materially damaged” by COVID-19-related property closures, operating limitations, and border closures. 

Revitalized Star Sydney 

The Star Sydney, which was closed from the start of the period until October 11, 2021, is said to have seen rapid growth following its reopening, with income increasing by 29% from this date to December 31, 2021. The total revenue generated by Queensland casinos was claimed to be steady when they were operational, notwithstanding border closures and COVID-19-related operating constraints.

The group anticipates reporting normalised EBITDA of between A$28m and A$30m for that period and a net loss of between A$73m and A$75m. Furthermore, the prevalence of the Omicron type affected trade results in December and January, with a surge in the latter’s middle section. This effect has since subsided, with trading reportedly continuing to recover.

About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.