Crown casino strike to impact profits

James Packer’s company Crown Ltd’s (ASX:CWN) may lose out on profit generated from the Caulfield Cup in Melbourne this weekend, the Australian Associated Press reporting that workers at the Crown Casino will go on strike because of unresolved pay disputes.

AAP says the casino operator could lose up to $4.3 million in revenue and $1 million in profits per day, while the state government would miss out on $400,000 in tax revenue per day.

The Liquor Hospitality and Miscellaneous Union says the protected strike action will begin this Friday and continue through to Saturday’s Caulfield Cup racing day.

AAP reports union members have not accepted Crown's offer to increase pay by 3.75 % per year. Instead the union members are asking for an increase of around 13.5 % over 3 years, above the Crown offer that equals an increase of around 11 per cent over three years.

The union’s state secretary Jess Walsh says Crown Melbourne dwarfs other Australian casinos by every measure and needs to attract and retain the best staff.

Crown reported a profit of $292.29 million in the year to 30 June 2010.