Macau Casino Workers Protest to Demand for Better Pay

Aug. 26 (Bloomberg) -- More than 1,000 casino workers in Macau took to the streets yesterday for a seventh time this year to demand better pay and working conditions in the world's largest gaming hub. Bloomberg Intelligence's Tim Craighead discusses the situation with Angie Lau on Bloomberg Television's "First Up." (Source: Bloomberg)

More than 1,000 casino workers in Macau took to the streets yesterday for a seventh time this year to demand better pay and working conditions in the world’s largest gambling hub.

Members from Macau Gaming Industry Frontline Workers marched through some of the busiest streets in the city and stopped at all of the city’s biggest casinos including Sands China Ltd., Galaxy Entertainment Group Ltd. and SJM Holdings Ltd. They waved banners, blew whistles and shouted slogans.

Cloee Chao, secretary general of the labor union, said more than 7,000 employees took part, while police put the number at 1,400.

Joey Au Yeung, a casino dealer of seven years at MGM China Holdings Ltd. and one of the demonstrators, said almost half of her monthly salary of 17,000 patacas ($2,130) goes to pay rent and it’s difficult to make ends meet.

“I have to rent and live in a 300 square-foot flat with my three kids and my husband, with little hope of owning a house,” said Au Yeung, who works six days a week, including two night shifts. “I have no time to spend with my kids.”

The protest comes as casino operators face worsening labor strains as some of them near completion on new resorts in China’s only city where casinos are legal, requiring thousands more workers starting from next year. The tensions also coincide with a Beijing government bent on rooting out corruption and money laundering, via a crackdown that’s already hit gambling revenues.

Photographer: Brent Lewin/Bloomberg

The protest by gaming workers comes as casino operators face worsening labor strains as some of them near completion on new resorts in China's only city where casinos are legal, requiring thousands more workers starting from next year. Close

The protest by gaming workers comes as casino operators face worsening labor strains as... Read More

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Photographer: Brent Lewin/Bloomberg

The protest by gaming workers comes as casino operators face worsening labor strains as some of them near completion on new resorts in China's only city where casinos are legal, requiring thousands more workers starting from next year.

Police Barricades

Police officers and security guards put up barricades, with some of them holding hands, in front of casinos to prevent the demonstrators from getting near the properties.

Chao said the union is demanding a 10 percent pay increase for all workers below manager’s level, especially for dealers. It’s also demanding a rule barring foreign workers from taking dealers’ jobs, and extend smoking bans to all parts of the casinos, said Chao, who’s a pit supervisor at Wynn Macau.

The union, which Chao helped set up in 2012, has about 10,000 members and half of whom are dealers, she said.

The march ended in front of the office of Macau’s Chief Executive Fernando Chui Sai-on. The march didn’t pass the property owned by MGM China Holdings Ltd. as police had denied permission due to traffic conditions, said Chao.

Rising labor costs are expected to trim Galaxy’s profit margin by 1 percent to 1.5 percent, Deputy Chairman Francis Lui said last week, adding the company will start to recruit 8,000 workers at the end of this year for its resort’s expansion. Macau casinos’ labor costs will rise 10 percent to 15 percent per annum in the coming years, thereby eroding margins, Deutsche Bank analyst Karen Tang wrote in a note last month.

Photographer: Brent Lewin/Bloomberg

Gaming workers protest outside Casino Grand Lisboa in Macau, China. Close

Gaming workers protest outside Casino Grand Lisboa in Macau, China.

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Photographer: Brent Lewin/Bloomberg

Gaming workers protest outside Casino Grand Lisboa in Macau, China.

Spokespeople for Sands China, SJM, Wynn Macau Ltd., Melco Crown Entertainment Ltd. didn’t immediately comment when contacted about the union’s demands. Galaxy declined to comment.

Political Change

The city’s biggest demonstration by casino workers on record took place last October, involving 3,000 protesters, according to a spokesman from Macau’s Government Information Bureau, who asked not to be named citing the bureau’s policy.

Macau is also under pressure for political change with Beijing-backed Chui up for re-election on Aug. 31, as activists started a week-long poll on Sunday to gauge support for universal suffrage, the Global Times reported on its website.

The election’s result is a foregone conclusion as Chui is the sole candidate seeking another five-year term in office, the Chinese government-owned newspaper reported yesterday.

To contact the reporter on this story: Celine Ge in Hong Kong at jge21@bloomberg.net

To contact the editors responsible for this story: Stephanie Wong at swong139@bloomberg.net Subramaniam Sharma

Photographer: Brent Lewin/Bloomberg

Visitors enter the Galaxy Macau casino resort, operated by Galaxy Entertainment Group Ltd., in Macau. Close

Visitors enter the Galaxy Macau casino resort, operated by Galaxy Entertainment Group Ltd., in Macau.

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Photographer: Brent Lewin/Bloomberg

Visitors enter the Galaxy Macau casino resort, operated by Galaxy Entertainment Group Ltd., in Macau.

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