Hundreds of workers at Star Entertainment’s Brisbane casino are poised to strike, citing dissatisfaction with proposed pay cuts as the company grapples with financial instability. The industrial action, organized by the United Workers Union, is scheduled for Friday from 4 PM to 6 PM, following unsuccessful negotiations with the casino group.
Jo Schofield, president of the United Workers Union, expressed frustration over Star’s failure to present a “reasonable offer” during bargaining sessions. “They have been forced into this position because of the failure of Star to recognize the cost-of-living pressures [workers] are under, but also the skills, commitment, and loyalty workers have shown to the company during what has been an incredibly tumultuous time,” Schofield stated.
Workers Demand Fair Compensation
The core of the dispute lies in Star’s current offer, which includes a 4% pay increase over three years, coupled with reductions in Sunday penalty rates. Schofield emphasized that these cuts would disproportionately affect the lowest-paid employees, such as cleaners and housekeepers. “The 4% offer still leaves Star workers well behind what other casino workers are earning,” she added.
Marcia Conlan, a games dealer with eight years of experience at Star, noted an increased workload since the casino’s relocation to the Queen’s Wharf site. Similarly, bartender Kaine Kennedy highlighted the pay disparity between Brisbane and Sydney, stating, “The current offer would see us go further backwards compared to Sydney. What we want is a pathway to parity with Sydney at the very least.”
Star’s Financial Challenges and Response
The Brisbane casino, which opened last year at Queen’s Wharf, has been a focal point of Star’s financial troubles. A spokesperson for The Star expressed disappointment over the planned industrial action, acknowledging its potential impact on visitors. “The Star has been doing everything possible to secure a stable financial future that will provide security for its workers, customers, suppliers, investors, and other stakeholders,” the spokesperson said.
Despite “long and challenging” negotiations with unions, Star maintains that it has been “flexible, diligent, and measured” in its wage proposals. “We value all team members and offer excellent employee benefits,” the spokesperson continued. “We are disappointed that protected industrial action will be taken — as this action impacts all visitors that arrive to The Star Brisbane seeking memorable hospitality experiences.”
Financial Instability and Future Prospects
The future of the Brisbane casino has been uncertain for months, exacerbated by a significant drop in Star Entertainment’s shares in February and the company’s failure to release its financial results in March. In early March, Star entered into a tentative agreement with Hong Kong investors Chow Tai Fook Enterprises and Far East Consortium to sell its stake in the Queen’s Wharf casino and hotel complex for $53 million.
However, the deal is now in jeopardy, as the two firms have issued a notice to terminate the agreement, effective Monday unless retracted within five business days. This development adds to Star’s financial woes, despite a separate $300 million rescue deal approved by shareholders last week, backed by US casino giant Bally’s and existing investor Bruce Mathieson.
Government and Union Reactions
Queensland Premier David Crisafulli voiced concerns about Star’s operational stability and reiterated support for the workforce. “Whatever iteration it takes in the future, our only concern is that the doors stay open and that people can go to work during that transition of ownership or whatever that looks like,” Crisafulli remarked. “We just want workers to have a job.”
The unfolding situation at Star Entertainment underscores the broader challenges facing the casino industry, as companies navigate financial pressures while balancing employee and stakeholder interests. As negotiations continue, the outcome will likely have significant implications for the future of Brisbane’s casino operations and its workforce.
