Voluntary programs
Casino company Melco Resorts and Entertainment Limited has started offering voluntary programs for its Macau staff to help them achieve “personal and professional objectives.” The Tuesday announcement revealed that the new programs include a voluntary exit scheme for the operator’s staff.
Employees will get 12 months’ worth of base pay and certain workers will receive guaranteed tips if they voluntarily resign through the “New Chapter” program.
allows staff to arrange special leave
The operator is also offering workers access to its “Thinking of You” program which allows staff to arrange special leave. In the program, employees get a monthly subsidy equal to 40% of their monthly base salary for special leave periods of between six months and 12 months. For periods of special leave between 13 months and 18 months, the wage subsidy is 55% of monthly base pay. In both cases, certain roles will also get guaranteed tips.
Providing an opportunity to workers
Of the special leave offering, Melco Resorts said: “During this special leave period, colleagues will not have to work for the company but are able to work elsewhere and remain eligible for certain company benefits.”
Following the ending of the leave term, the workers will have the opportunity to return to Melco.
Each employee who is a resident of Macau will be eligible for the new range of programs. The company has stated that the launch of these programs has received a positive response so far.
The reason Melco Resorts gave for the new voluntary programs was to help meet the “new needs of local Macau resident colleagues” and to help with their life priorities and objectives. The programs reportedly give workers the chance to explore different types of life plans, including a transition to non-gaming positions, as well as helping boost mental wellness.
Pandemic struggles
Melco Resorts is the operator of the Altira, Studio City, and City of Dreams casino resorts in Macau. It also operates a number of slots clubs through the Mocha brand. Melco’s other gaming-related operations are in Cyprus and the Philippines. The company is also looking to get its hands on one of three casino resort licenses in Japan. Melco Resorts previously had a 9.99% stake in Australian casino operator Crown Resorts, but sold it to US investment company Blackstone Group for AU$552m (US$425m) last April.
Melco Resorts has taken a big financial hit as a result of the COVID-19 pandemic
Just like most casino companies with a significant land-based portfolio, Melco Resorts has taken a big financial hit as a result of the COVID-19 pandemic. In its latest quarterly figures for the period ended March 31, the company had a $232.9m net loss. Its revenue for the period was $518.9m, a drop of about 36% year-on-year.
Getting back to business in Macau
Melco Resorts is not the first casino company in recent times to launch a voluntary exit program for workers in Macau. A couple of weeks ago, fellow Macau casino operator Galaxy Entertainment Group Limited announced its launch of a voluntary exit scheme for its table game pit supervisors.
Macau’s economy has been significantly impacted by the pandemic, as it is heavily reliant on gaming-related revenue. However, green shoots are starting to appear. Revenues are slowly starting to recover for casinos in the region and visitor numbers are on the rise.
The Macau authorities urged the major casino operators to hold onto their workforce during the pandemic as they are the largest employers in the region. Now it appears that some casino operators are potentially looking at ways to cut employee costs without having to force workers out.