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Casino giant Crown Resorts recovered goodwill payments of two weeks' wages to staff who were stood down due to COVID-19 from taxpayers by claiming it back through the government's JobKeeper scheme.

Crown's agreement to pay full- and part-time employees for a fortnight after its Melbourne and Perth casinos were closed on March 23 was a rare piece of positive PR for the James Packer-backed group, which has been plunged into crisis this year by the NSW probity inquiry into its operations.

Crown claimed back much of the voluntary payments it made to staff. Credit:Getty Images

But the Sydney Morning Herald and The Age has confirmed through multiple company sources that Crown quickly covered most of the cost of these 'ex gratia' payments when it signed up to the JobKeeper wage subsidy scheme weeks later.

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Despite this, the company continued to trumpet the payments as a sign of the company's support for its employees. Chief executive Ken Barton wrote in Crown's annual report, released in September, that Crown had made 'an ex gratia payment of two weeks’ pay' to workers, without revealing much of this was covered by JobKeeper.

The JobKeeper subsidy of $1500 per fortnight, which was backdated to March 1, is not likely to have covered the full cost of Crown's payments to permanent staff given most of them earn more than that. Crown paid a lump sum of $1000 to some casual workers, but only 'long-term' casual workers are eligible to receive JobKeeper payments.

A Crown spokeswoman declined to comment.

The union representing Crown's gaming floor and hospitality workers, the United Workers Union, raised concerns with management that the pandemic payments was a commitment Crown made to its workforce and should not be subsidised by taxpayers, according to one source who requested anonymity to discuss confidential matters. However Crown stood by its decision.

The group employs about 18,500 people at its Melbourne and Perth casinos and 11,500 of those were stood down from work during the pandemic.

Crown received a total of $111 million in JobKeeper payments for the period from March to June 30 according to its annual report, with $68 million going directly to workers who were stood down and $43 million going to staff who continued to work full or part-time.

Crown also established a hardship fund during the year to make support payments to stood-down workers who were ineligible for JobKeeper, such as those who were not Australian citizens or permanent residents. And it made 14 days of paid leave available in March to any worker - including casuals - who missed work because they were infected with COVID-19 or needed to self isolate.

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The casino giant has had a disastrous year, with the NSW Independent Liquor and Gaming Authority (ILGA) inquiry exposing its failures to prevent money laundering, the risks it took in China before 19 staff were arrested there in 2016, and major shareholder James Packer's 'deleterious' influence over corporate governance.

The ILGA this month blocked Crown from opening its new casino at Sydney's Barangaroo until the inquiry's commissioner Patricia Bergin delivers her recommendations on its suitability to hold a casino licence in the state.

The Age and Sydney Morning Herald revealed this week that Crown has continued to employ the executive overseeing the construction of its Sydney casino, Todd Nisbet, despite its board being briefed on bullying allegations levelled against him.

The executive vice-president of strategy and development has been the subject of complaints to Crown's human resources department after his intimidating behaviour left some staff in tears and prompted its former vice-president of design and construction, Lee Monfort, to resign.

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Nick McKenzie is an investigative reporter for The Age. He's won nine Walkley awards and covers politics, business, foreign affairs and defence, human rights issues, the criminal justice system and social affairs.

Staff of Melbourne’s Crown Casino are not happy over their pay.

With its union, United Voice, they are fighting for better pay and job security and are in the final stages of a ballot on whether to strike for the first time in 16 years. The strike would take place during the upcoming Spring Racing Carnival.

“Staff believe as one of the largest and most profitable employers in Australia, Crown should be able to offer a full time job to anyone who wants one,” union national secretary Tim Kennedy said.

United Voice is threatening to bring the casino to a halt as negotiations over a new enterprise bargaining agreement stall. They have applied to the Fair Work Commission to allow for a ballot of its members.

The union will ask members to endorse strikes of up to 24 hours which will include a ban on serving alcohol with the wearing of union branding on shift.

They hope to have the ballot finished by October 28, putting staff in a position to strike by November 1, the day before the Victoria Derby Day and the beginning of the Melbourne Cup Carnival.

United Voice is pushing Crown for a 5 per cent wage increase each year under a new three-year enterprise agreement covering 5000 workers. Most recent data shows inflation running at 1.6 per cent with private sector wages growing by 2.3 per cent in the last financial year.

The union is looking for increased job security through maintaining full-time jobs and higher minimum hours for part-time workers, according to Perth Now.

Crown Casino staff to strike in Melbourne https://t.co/Y7Ttzle6xF

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First offer rejected by the union

It rejected Crown’s offer of a 2.5 per cent annual wage increase over each of the next three years and claims Crown had agreed in principle to only one of its demands, being to reduce the time taken to move from casual to permanent employment from 24 months to 12 months.

“Crown staff work hard to keep the casino running 24/7 and make it the success that it is. When our members strike, Crown simply won’t be able to function,” said United Voice state secretary Ben Redford.

United Voice says the 10 meetings that it has had with casino management this year have amounted to little.

A report released by the union last month showed up to 70% of Crown’s staff were in part-time or casual work.

A spokesman for Crown said an agreement was expected to be finalised soon and highlighted the casino’s ability in providing employment and training opportunities.

“Like many other employers in the hospitality industry, we provide a flexible workplace which caters to thousands of staff who prefer to work on a part-time or casual basis as it gives them the flexibility to pursue other work, study or family opportunities,” he said.

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“Where staff would like to work additional hours, depending on their availability and trading conditions, we strive to provide them with the opportunity to increase their hours worked.”

The pay fight is a significant issue for the gaming giant, however is not the only issue that it is currently facing.

It is facing renewed allegations of money laundering and a range of other illegal activity.

The federal government yesterday struck down an attempt by independent Tasmanian MP Andrew Wilkie to establish a royal commission into Crown.

Attorney-General Christian Porter labelled the request “completely premature”, given the multiple investigations currently underway.

Victorian Greens MP Ellen Sandell also rallied for a royal commission.

Mr Wilkie had joined with Victorian state MP Fiona Patten to launch a push this Monday for a royal commission into Crown, which included a chauffeur driver’s video testimony on a wide range of illegal activity he had noticed by the organisation.

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However, State Gaming Minister Marlene Kairouz said “it’s not uncommon for high roller rooms to have large amounts of cash in those rooms and let me remind the member that cash is indeed a legal tender”.