SkyCity under lockdown once more.
After achieving the title of the first coronavirus-free nation in the world, New Zealand has now reported 4 new Covid-19 cases. This has prompted the city of Auckland to re-enter a lockdown, which additionally includes the closure of the SkyCity Casino. To further enhance safety measures, the SkyCity Casino in Hamilton and Queenstown has also been informed of increased protective guidelines. With these recent developments, people are wondering if the casino operator will be able to handle the situation.
A lockdown has been implemented in Auckland, the primary location of the New Zealand casino and entertainment chain, as a result of these 4 new Covid-19 cases. In order to adhere to the government's orders, SkyCity has shut down their Auckland casino and all other leisure facilities. The city is currently on a level 3 alert for the coronavirus, and the lockdown is expected to continue for at least a week. The Hamilton and Queenstown SkyCity properties, on the other hand, have been bumped up to alert level 2, allowing them to keep operating but with stricter regulations concerning distance and hygiene.
In a press release, SkyCity's Chairman, Graeme Stephens, said that the company is fully following the New Zealand government's guidelines. He confirmed that the company is financially equipped to handle the temporary restrictions and their potential impact.
SkyCity's Adelaide Casino will remain unaffected by this situation as it already has stringent physical distancing and hygiene policies in place. Additionally, hotels in Auckland will stay open to accommodate existing guests under protective measures.
However, given the significant number of job losses previously announced, it remains unclear whether the casino operator will be able to weather this latest blow. In May, SkyCity had planned to lay off over 700 workers when they were preparing to reopen. These jobs are estimated to be located in Auckland, making up roughly a third of the 3,000 jobs held there. The company called this plan a serious decision, citing a weaker economy, lower disposable income, changes in entertainment habits, mass event restrictions, and social distancing as the factors driving the layoffs.
The Unite Union's Joe Carolan expressed his criticism of this move, admitting that they had known about it for weeks. He clarified that the scheduled redundancies would provide employees who had worked for the company for 20 years or more with up to 6 months of continued pay. Despite this, Carolan dismissed SkyCity's decision, stating that it was primarily due to the drop in international business. Similarly, a decline in social behavior and the lack of spending by New Zealand citizens on gaming were also cited as contributing factors. While the union was not directly involved in the redundancy plans, SkyCity maintains that they will need to scale back the number of employees in accordance with their new projected trading levels.
The casino industry has been experiencing job losses globally due to the coronavirus crisis. While some countries offer minimal government aid packages, such as the USA, SkyCity has been receiving wages subsidies. The company received a total of around USD 31 million in support, despite the layoffs of over 700 employees in July.
Recently, SkyCity reported a drop in turnover exceeding 40 percent over a 40-day period. They have applied for an extension of the wage subsidy, initially meant to maintain the workforce until business returns to normal, in response to this crisis's implications on their operations. The new extension comes with eight weeks of payments for each named employee.
When questioned about the USD 9.4 million they received in July, SkyCity reiterated that the Covid-19 pandemic has altered their business operations irreversibly and that their operations will be scaled down to focus on domestic customers.
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Source: www.onlinecasinosdeutschland.com
