SJM Holdings To Proceed Bonus Scheme Amidst Downturn

SJM Holdings, one particular of the major casino operators in Macau is retaining its bonus scheme in 2016 in accordance to an internal communication to its employees as reported by labor activist group Forefront of Macao Gaming. This is regardless of the decline in its general gaming income and market predictions by gaming analysts that Macau's gambling industry will continue to decline in 2016.
Gambling revenues in Macau has dropped by 34.three percent to MOP 230.84 billion in 2015 in accordance to Gaming Inspection and Coordination Bureau, the city's gaming regulator.
Month-to-month revenues have been declining steadily yr-on-year given that June 2014 and Macau's casinos have reported losses in excess of $130 billion in 2015.
SJM Holdings has suffered the most in the recent meltdown, shedding 78 percent of its marketplace value more than the prior two years. Its stock price tag in Hong Kong trading has dropped by 55 % on year-on-12 months basis. And its revenues has declined by 37.seven percent from same time period previous year to HKD 11.four billion (US$one.47 billion).
The casino operator had declared in 2014 that it would carry on with its bonus scheme, labelled by it as “living subsidy,” till 2020. Known as “new year subsidy” and “summer subsidy”, the yearly bonus was decided to be paid out twice, in January and July respectively right after a protest by employees earlier.
SJM Holdings released an internal memo which confirmed that under the scheme an yearly bonus equaling two months of salary would be offered to staff earning up to US$ 2505 or MOP 20000 per month. PokerPencet People with salaries over this amount would obtain an yearly bonus equivalent to 1.5 occasions their month-to-month salary or MOP 40,000, whichever is larger.
Staff operating for SJM Holdings for less than a 12 months would be also entitled to the bonus though paid professional-rata as per their support tenure with the firm. The 1st instalment for the yr was paid in January, and the second is due on July one.
The inner memo nonetheless did not specify if employee salaries would be elevated in 2016. SJM Holdings had provided a five percent pay hike to staff in addition to its bonus scheme in 2015. The Macau government has currently announced a 2.5 % shell out rise for the public sector employees. This is nonetheless below the current inflation rate which is in between 4 -five percent. Other casino operators in Macau are however to announce salary hikes for 2016.
Industry analysts have indicated that in a deteriorating marketplace labor fees could potentially weigh heavily on the operators' margins as they struggle to discover new methods to tackle declining revenues.