State Investment Corporation Proposed Retirement Plan for Mauritius Casinos

A new voluntary retirement plan is in the process of being applied to Mauritius casinos for employees. Still, these measures are proposed by the State Investment Corporation (SIC) are not unanimous.

The Casinos Employees Union (CEU) asks that Local Leaves and thirteen months of wages be counted as part of the proposal for those who voluntarily retire working in Mauritius casino. The management of the Mauritius Casinos says it is open to any suggestion and maintains that the retirement plan is not yet final. They plan for a fourth staff downsizing plan at Mauritius Casinos; an employee who will reach age 60 from June 30 is invited to retire through an early retirement plan. They will not only receive payment for their wages calculated over the five years they were to work until the age of 65, as proposed by law.

While according report sighted by local media, the State Investment Corporation (SIC) states that a copy of the form saying that employees interested in the voluntary retirement plan have until July 5 to come forward. According to a senior executive based at Mauritius Casinos, around 70 employees aged 60 or over are affected by this voluntary retirement plan. Initiatives, it is understood, have been initiated to encourage them to opt for a pension plan, which they plan will implement shortly.

The voluntary retirement plan, which is, in fact, a last-ditch slimming exercise, will be implemented due to the chaotic situation that Casinos in Mauritius have been facing for several years and the unforeseen crisis caused by the Covid-19 outbreak. However, the country has four casinos, in Grand-Baie, Caudan, Curepipe and the Grand Casino du Domaine, located at Domaine Les Pailles. But only the latter shows a satisfactory profitability rate due to the loyalty of its customers. Another reason is contributing to the chaotic situation of Mauritius Casinos, the payment of monthly taxes, which oscillate between Rs 20 and Rs 30 million on the machines. At the same time, Casinos Employees Union (CEU) spokesperson Satish Rughoobur comments that the voluntary retirement plan is only for employees on the cusp of their 60s. The speaker then confirms that around 70 employees are affected by this measure but that most would not agree with the proposal formulated by the SIC.

“We sent a letter to the Ministry of Finance to this effect, but the CEU has received no response so far.”

However, some sections of the workers in the age bracket of the 60s support this move. At the same time, some have criticized the meaning it is not in the interest of aged workers, especially during this unprecedented time due to the virus spread.

Meanwhile, E-Play Africa Media had reported earlier Mauritius Economic Development Board office had shown commitment to supporting casino operators and other economic operators that the COVID-19 pandemic has impacted. In essence, operators who are not functioning due to the health restrictions in the country. The special office has been set up at the Economic Development Board (EDB) in collaboration with the Development Bank of Mauritius Ltd and the One-Stop-Shop of the Ministry of Finance. This office will support companies engaged in the following sectors: fitness centres, food court, bar, restaurant, cinema, casinos, night clubs, reception room, multipurpose room amongst others, and any other business sector.

Operators in these sectors would be eligible for financial support from the Development Bank of Mauritius Ltd. Under the following scheme that the authorities have set, which include an interest-free loan of Rs 100,00 to settle cash flow problems, a unique Covid-19 support program for a loan of up to 1 million rupees with an interest rate of 0.5% and a one-year moratorium.

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