The Star, an Australian casino operator recently completed an internal wage review that revealed that it had underpaid close to 2200 employees over six years at its flagship The Star Sydney casino resort.
Inconvenient Truths
As a result of its internal findings, The Star Entertainment Group is now obliged to pay $13m to its affected workers. While this is not good news for the company which is enduring reduced revenues due to the economic consequences of the COVID-19 pandemic, it has at least salvaged its reputation by making this discovery internally as opposed to it being exposed by an outside entity.
The Star explained in a recent statement that it had advised the Fair Work Ombudsman and the United Workers Union of the error and its plan to correct it. Ahead of the release of its half-year report on February 17, The Star has revealed that it expects a statutory net loss of close to $75m.
Open Cards
The Star’s Marketing Director Matt Bekier made a sincere apology to affected workers and said that the operator is “committed to doing the right thing by acting transparently.”
“Our priority is to address this issue and to ensure that it doesn’t happen again,” he said.
The Star added that it has “improved its processes, systems, and training and has a plan in place to ensure salaried team members’ pay is correct moving forward. “The company further elaborated that the $13m amount comprises back pay, interest, and pension contributions.
This move, while ethical, comes at an inopportune time for the company which is facing a future rife with even more pandemic-related economic issues.
When it Rains, it Pours
Aside from this most recent issue, The Star has been battling challenges on several fronts. In May 2021, the operator’s bid for casino giant Crown Resorts was a non-starter as it was driven off by the high stakes that rival bidders had brought to the table.
The Star also currently finds itself under investigation by the Australian Transaction Reports and Analysis Center (AUSTRAC). The inquiry relates to alleged breaches of anti-money laundering and counterterrorism regulations. AUSTRAC’s investigation will reportedly “include multiple entities under the company.”
