Inside Asian Gaming

October 2008 | INSIDE ASIAN GAMING 25 A labour market spat between the Macau government and the gaming operator Galaxy Entertainment Group is threatening to set a troublesome precedent. The government in effect intervened in the day-to-day running of a licensee’s operations and cancelled work permit permissions for 58 of Galaxy’s foreign staff recruited as casino pit supervisors. The move was widely regarded as retaliation by the government after Galaxy laid off some staff at two of its smaller casinos during a cost-cutting drive. In the first round of layoffs, the company had earlier axed 140 mid-level foreign workers at the GrandWaldo and President casinos.Then, in July, Galaxy let go 270 local casino staff, mostly dealers. David Banks, Galaxy’s group Chief Operating Officer, said at a press conference last month to announce the first half 2008 interim results of the company that it had guaranteed to re-employ sacked workers once the Mega Resort opened in 2009. However, the public relations damage has already been done. Some local politicians have called for the government to force all non-resident workers to wear some form of identification badge or bib inside the casinos and even to revoke Galaxy’s gaming licence. Not only does the response of local politicians look peevish,itmay arguably damage Macau’s economic interests and those of its citizens in the medium term. The government insists that casino card dealers must be locals.This made sense at the beginning of the casino boom in 2005, when unemployment stood at around 6%. Today with the jobless figure at 2.8% and thousands of unfilled vacancies in Macau, the policy has created a gilded cage for local residents. They are able to secure what are well-paid jobs by local standards straight from high school, earning as much as 15,000 patacas (US$1,875) a month as dealers. Then they hit a glass ceiling. There are barely enough local dealers to go round and employers daren’t promote those that are in post for fear of not being able to find replacements. As a result, the locals, who were supposed to benefit most from the casino boom, are stuck in relatively ‘dead end’ jobs, while foreign staff are getting the supervisory and management posts. Macau Cuts off Nose, Spites Face Galaxy Results construction is going smoothly and it [first phase operations] is expected to commence promptly in 2009,”he said. As of June 30, 2008, the Group had more than HK$6.1 billion in cash, it said. This, together with the substantial cash flows from StarWorld and other operations, would ensure the company has adequate financial resources to complete phase one of Cotai Mega Resort, as planned. The new resort will have approximately 5 million square feet of development in two towers, including three luxury hotels and a casino. One of Galaxy’s luxury hotel partners for Mega Resort was recently announced as Singapore-based Banyan Tree Hotels & Resorts. A Sure Bet Log onto www.asgam.com for the latest industry intelligence and a subscription to our digital edition — all absolutely free. Lui Che-woo stands before a rendering of Galaxy’s Cotai Mega Resort