Wider economy would be hurt from Star collapse: union
As the future of Star Entertainment hangs in the balance, a prominent union says it isn’t just casino workers who would be hit by its collapse.
Calls continue for a cash-strapped casino to be handed a government lifeline, with fears its demise will cost thousands of jobs and hit the wider economy.
Fresh from an $8 million loss in the three months to December 31 and with minimal cash in the bank, the future of the Star Entertainment Group hangs in the balance with 9000 workers at risk.
A powerful union says the casino group’s collapse would have widespread economic consequences with suppliers also feeling the pain.
“Over 300 food and beverage suppliers, including local farmers and producers, depend on Star’s operations… industrial laundry services processing tonnes of linen for hotels and restaurants would see their business vanish overnight,” United Workers Union casinos director Andrew Jones said.
“The state governments need to consider the cost of inaction… supporting Star now could prevent the loss of thousands of jobs and the decimation of night-time economies that took decades to build.”
The casino operator has been on a downward financial trajectory ever since the fallout from a money-laundering scandal in 2021, steering high rollers away from the casino’s tables.
The share price of Star, which has casinos in Brisbane, the Gold Coast and Sydney, hit an all-time low of 10.5 cents on January 10, recovering marginally to 12 cents since.
It sold an events complex inside its Sydney casino to Foundation Theatre on Wednesday for $60 million, with chief executive Steve McCann indicating the group would continue to “work on a number of other potential non-core asset transactions”.
While the Queensland and NSW governments have said they will look to support Star’s workers, both have said they will not bail the company out.
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Jones urged those governments – along with their federal counterpart – to change their tune and prevent “an economic crisis in our major cities”.
“Casino workers should not bear the brunt of management’s failures, nor should the thousands of adjacent businesses and workers who depend on these venues remaining operational,” he said.
“We are encouraged by the NSW government’s engagement in discussions to date and have written to the Queensland premier inviting him to join discussions to save the 5000 jobs in Queensland.”
