One of Western Australia's biggest employers, Crown Resorts, has stood down 95 per cent of its national workforce due to coronavirus restrictions affecting its casinos and hospitality venues in Perth and Melbourne.
One of Western Australia's biggest employers, Crown Resorts, has stood down 95 per cent of its national workforce due to coronavirus restrictions affecting its casinos and hospitality venues in Perth and Melbourne.
The gaming company's web site states that it employs 6,000 people in WA and 12,500 people in Victoria.
In an ASX update today, Crown said it has stood down, on either a full or partial basis, approximately 95 per cent of its employees, or more than 11,500 people.
Only employees in business-critical functions remain actively working.
Crown said it had made an ex gratia payment of two weeks' salary to full-time and part-time workers and given $1,000 to eligible casual workers, who will also be able to draw down on entitlements such as annual leave.
Chief executive Ken Barton and other senior managers have taken a 20 per cent temporary pay cut.
"Crown has registered for the Commonwealth government's JobKeeper payment and is currently working through the implementation of this scheme," the company said today.
The stand downs will save Crown $20 million to $30 million a month. Mr Barton called them "tough but necessary".
"I have a deep gratitude to our employees for their understanding and commitment during this painful and highly uncertain time," he said.
Crown said it was in a strong financial position, with about $500 million in cash and the ability to borrow more than $1 billion.
It will pay its partially franked 30 cent interim dividend on Friday.
At 1130 AEST today, Crown shares were down 0.24 per cent to $8.24
Crown said its $2.2 billion Crown Sydney project in Barangaroo was going forward and on track to be completed by the end of the year, barring further coronavirus-related delays.
There are 1,300 people employed on the project, which will employ 2,000 people once complete.
Crown said it had provided 950 hotel rooms in Melbourne and 600 rooms in Perth to accommodate travellers who were required to self-isolate for two weeks when returning from overseas.
Today's announcement comes as 70 per cent of WA businesses said they were expecting job losses as a result of the COVID-19 pandemic, according to a survey by the Chamber of Commerce and Industry of WA.
Of the 800 WA businesses surveyed, 84 per cent said they were adapting their businesses models to stay open and more than a quarter were planning to make capital investments to support and develop new capabilities.
Almost 60 per cent of businesses were working-from-home, reduced work hours or introduced more flexible shifts and duties for employees.
However, the study also showed about 85 per cent experienced reductions in customer spending while about 40 per cent had difficulties getting parts or supplies from interstate and overseas.
CCIWA's chief economist Aaron Morey said the survey showed the brutal impacts for businesses but they were fighting back.
"But there’s no sugar-coating the challenge, especially for the many businesses whose practical options to adapt are limited," Mr Morey said.
"The good news is that governments have been highly receptive to consultation with CCIWA and the business community, with landmark support measures introduced to address the key concerns of WA businesses raised in this survey.
"We will continue to work closely with both levels of government to secure the best measures for the economy, building on JobKeeper, payroll tax cuts, fee relief and regulation exemptions, to shield WA jobs and safeguard businesses through this crisis."
Meanwhile, The Star Entertainment Group said it had finished its process of standing down 8,500 staff, or 90 per cent of its workforce - what chairman John O'Neill called "the most painful decision our senior management is ever likely to encounter".
The Star said it had executed additional debt funding of $200 million, giving it $700 million in available cash and undrawn debt, enough to survive an extended shutdown.
The Star said it needs $220 million to survive a three-month shutdown, and $320 million to endure a six-month shutdown.
