Star casino to pay $13 million following admission of underpaying staff
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Star Entertainment Group - one of Australia’s largest gambling and entertainment operators – has admitted to underpaying its staff with up to 2200 employees denied about $13 million over a six-year period.
The Star’s staff underpayment scandal follows that involving other major Australian employers over the past few years, including the Commonwealth Bank, Coles, Woolworths, Wesfarmers, Qantas, and the ABC.
The $3.4 billion gambling empire, which runs casinos in Sydney, Brisbane and on the Gold Coast, alerted the Fair Work Ombudsman and the United Workers Union to the planned repayments, which included back pay, interest and superannuation contributions to workers at its Sydney gaming precinct.
The underpayments were picked up via a six-year wage review of salaried staff on awards, with the Group advising it had since “improved its processes, systems and training and has a plan in place to ensure salaried team members’ pay is correct moving forward”.
Star Chief Executive Matt Bekier notes “we apologise to any team member impacted by the payment shortfall and we are committed to doing the right thing by acting transparently. Our priority is to address this issue and to ensure that it does not happen again.”
Star, Australia’s second largest casino operator, is already facing a looming public inquiry this year into whether it has been complying with statutory obligations and is fit to hold a NSW casino license. The company is contending with an investigation by financial regulators amid money-laundering allegations.
United Workers Union Deputy Director, Imogen Beynon called on Star to rectify the pay situation for impacted casino workers advising “we know from this example and many others that incidences of wage theft and underpayments are reduced when people are covered by a union agreement.
“This situation has also brought to light the issues surrounding many companies’ over-reliance on salaries which fall short of the relevant award.”
The Star plans to take a $13 million hit in its upcoming financial results as it begins the process of repaying its staff, plus interest, expected to increase the company’s first-half loss to between $73 million and $75 million.
The Star runs the casino at Pyrmont in Sydney’s Darling Harbour as well as the Star Grand on the Gold Coast and the Treasury in Brisbane, where it is currently building a new $3.6 billion venue at the nearby Queen’s Wharf precinct.
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