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Mohegan Sun slashing employee pay and benefits

12 January 2009

UNCASVILLE, Connecticut -- As reported by The Hartford Courant: "Mohegan Sun is unilaterally reducing employee pay and benefits in the face of 'unprecedented market conditions' that have cut into revenue at the 3.1 million square foot casino.

"The Mohegan Tribal Gaming Authority announced Sunday that effective Feb. 1 it will cut pay for all employees, with salary rollbacks of 10 percent for vice presidents and above, 7.5 percent for middle managers and 4 percent for all line and hourly employees.

"In addition, it will eliminate annual raises and merit-based salary increases and is scrapping its matching contribution to employee 401(k) plans.

"...The announcement comes a month after the casino's parent company reported a double-digit percentage decline in net earnings, primarily due to a drop in gambling revenue. For the year ending Sept. 30, Mohegan Sun reported $1.36 billion in net revenue, down about $68 million from the previous year.

"That revenue decline came despite the August 2007 opening of Sunrise Square, a $16.7 million expansion that included an 8,500-square-foot Asian-themed gambling area, a 5,000-square-foot bus lobby and a 4,000-square-foot "Hong Kong" street food outlet..."

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