Star Entertainment is the latest Australian firm to confess underpaying employees by up to $13 million over six years.
The $3.4 billion gaming conglomerate, which has casinos in Sydney, Brisbane, and the Gold Coast, announced on Monday that it had contacted authorities and unions after discovering that hundreds of employees had been underpaid going back to 2016.
A retroactive salary evaluation of paid team members revealed that certain employees were not “better off overall” since their wages did not include overtime and penalty rates.
CEO Matt Bekier apologized by noting that the primary goal is to fix this and prevent it from happening again. They also apologize to any payment-delay-affected team member and are dedicated to behaving ethically and honestly.
Financial results for The Star will be impacted by $13 million when it begins to compensate its employees, as well as interest.
Another rough trading period marked by the Delta and Omicron waves is likely to raise the company’s deficit to between $73 million and $75 million in its first half.
After a slew of similar incidents at big Australian businesses, including the Commonwealth Bank, Woolworths, Wesfarmers, Qantas has emerged in recent years.
Even though the underpayments amounted to barely 0.4% of the $3.3 billion it had paid personnel during this period, the Star stated that it had contacted the Fair Work Ombudsman and the United Workers Union on Monday.
The company’s stock initially fell to a six-day low on Monday but has subsequently rebounded to close up 0.3 percent at $3.56.
There are four casinos owned by The Star Group: Pyrmont Casino in Sydney’s Darling Harbour; The Star Grand Casino on the Gold Coast; and the Treasury Casino in Brisbane, where a new $3.6 billion facility is now being constructed in the nearby Queen’s Wharf complex.
A new $3.6 billion casino is now being built at Queen’s Wharf in Brisbane, home to Sydney’s Pyrmont Casino and the Star Grand on the Gold Coast. The Treasury in Brisbane is also under construction by The Star.
One of Australia’s largest gaming companies, The Star, operates a casino in Sydney’s Darling Harbour and two others on the Gold Coast. One in Brisbane is now developing a new $3.6 billion site.
In 2022, it is anticipated to launch the fully finished Dorsett hotel and a residential complex on the Gold Coast.
As a result of money laundering charges, banking officials are also looking into the firm.