Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Benefits January 13, 2009
Mohegan Sun Casino Stops Match, Cuts Pay
January 13, 2009 (PLANSPONSOR.com) - The Mohegan
Tribal Gaming Authority has announced it will suspend future
annual and merit pay raises and stop company match
contributions to its 401(k) retirement plans.
Reported by Rebecca Moore
Businessweek reports that the Mohegan Sun casino is also cutting the pay of all 9,800 employees. Pay for vice presidents and senior management will be cut by 10%, middle managers’ pay will be cut by 7.5%, and the pay for non-management salaried and hourly employees will be reduced by 4%, effective February 1.
“Due to unprecedented market conditions, the authority has been forced to make a number of difficult, but necessary, decisions to reduce our operating costs,” said Mitchell Etess, president and Chief Executive of Mohegan Sun, according to the news report.
The casino company plans to avoid layoffs.
Last month, Station Casinos of Las Vegas, also announced it was suspending 401(k) match contributions and cutting executives’ pay (see More Companies Decide to Go “Matchless”).
« Outgoing Pension Insurer Director Cautions about Carmaker Shortfalls