MGM Mirage employees who were given cost of living increases between January and March saw their salaries revert back to 2008 levels on April 1.
Last month, MGM Mirage told its 61,000-plus workforce that cost of living raises were being suspended for all of 2009. Also, 401k matching contributions were cancelled for the year and the company increased by $10 per pay period employees’ contributions for health care benefits.
The moves are part of the ongoing cost reductions being undertaken by the Strip casino giant, which is facing financial issues on two fronts. The company needs to restructure some $13.5 billion in long-term debt. Also, MGM Mirage is trying to complete financing for the $8.7 billion CityCenter development.
Some employees, whose anniversary dates fell in the first quarter, received cost of living increases before the March announcement. MGM Mirage spokesman Gordon Absher didn’t know how many workers received a pay increase, but they will be allowed to keep the extra money earned in the quarter.
“On April 1, their salaries reverted back to 2008 levels,” Absher said.
Last October, the company announced it had eliminated its cash bonus program, which was based on achieving a certain level of profitability.
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Give the CEO half a million dollar raise and a 7 million dollar severance package...then take the food from workers mouths to pay for it. If there was ever a time for a revolt against corporate pigs, this would be it.
This is all so sickening... The ugliness of City Center next to the beautiful Bellagio architecture is very distastefull....
An earthquake right underneath those buildings would be the only solution to that nightmare....
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