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Sun International Closes Carousel & Naledi Casinos Permanently
The Covid-19 pandemic, coupled with escalating costs and declining revenue have claimed the iconic Carousel Casino and Naledi Casino, both of which have permanently been closed, and will not reopen after the national lockdown.
SUN INTERNATIONAL confirmed that both the Naledi Casino, situated in Thaba Nchu in the Free State and the Carousel Casino in the North West, have run at a loss for several years.
In a statement, the hospitality company addressed inevitable looming job losses, saying they have ‘started the process of engaging gaming boards, relevant unions and employees’.
Sun International CEO Anthony Leeming said: ‘Given the unprecedented crisis that South Africa is facing, we accept that the authorities have no option but to implement a country-wide lockdown to protect lives. However, the inevitable financial burden it placed on us has impacted our ability to continue subsidising under-performing properties”.
Leeming also said Naledi, a slots-only casino had run at a loss for years, while the Carousel had also incurred losses ‘for some time’.
“We previously made every effort to turn both businesses around, but these efforts have not achieved the desired results,” he said.
Sun International to cut staff salaries, ‘temporarily’ lay off some workers post lockdown
In related news Sun International has also proposed reducing working hours and salaries for its staff after the nationwide lockdown to curb the spread of the coronavirus ends, in order to avoid mass retrenchments.
The company has informed its employees and representatives of the SA Commercial, Catering and Allied Workers Union (Saccawu) that on May 1, when trading is expected to recommence, it will have a shift system with reduced working hours in place. In a statement the group said that once the lockdown ends, some employees will be told to resume work, while those who are not called back will be “laid off temporarily” as the group ramps up to full operation. Venues like Sun City will at first only open a limited number of hotels and increase openings depending on customer activity.
As employees return lockdown shift systems with a minimum of four hours per day will be put in place. Permanent full-time employees who work 150 hours per month can expect a 20% salary reduction, while employees earning over R1 million will also see a 30% reduction in salaries. Non-shift employees required to report to work will see a 20-29% salary drop, while those who are not called in for work will have to apply for the UIF.
“If these changes are not made, we run the risk that our funders will no longer provide the capital we need to continue to operate,” said the group in a statement.
Saccawu, in response statement, said the union is declaring a dispute over the company’s unilateral decision to reduce remuneration and working hours, and to lay off staff.
