Inside the Twin Arrows Casino and Resort, Flagstaff, Arizona, unspecified date | Photo courtesy of the Twin Arrows Facebook page, St. George News
ROCA WINDOW, Arizona (AP) – More than 1,000 people who work for the Navajo Nation gambling company have been told to prepare for the possibility that they will not receive paychecks while on administrative leave.
The tribe’s three casinos in northwestern New Mexico and one east of Flagstaff, Arizona, have been closed since March 17 due to the coronavirus. But the 1,180 majority Navajo employees have remained on the payroll with benefits.
Brian Parrish, acting chief executive officer of Navajo Nation Gaming Enterprise, said the final decision on the layoffs will come over the weekend.
“It is not certain that the layoff will occur, but we wanted to err on the side of caution,” he said.
Parrish said the company is running out of cash reserves, putting its sustainability at risk. He has presented proposals to tribal leaders for a portion of the federal virus relief money that went directly to the tribal government. But tribal lawmakers are unlikely to make an immediate decision on how to allocate the remaining money.
Payroll represents approximately 70% of fixed costs for the gambling company, Parrish said.
Federal Payroll Protection Program loans covered employee payroll for almost half of the 19 weeks that casinos have been closed, Parrish said. It did not disclose exactly how much the company received, but data released by the US Treasury Department showed a range of $ 4.7 million to $ 11 million for four loans.
A skeletal team that includes security, engineers and some managers will continue to work, Parrish said. Any unpaid employee will continue to receive health benefits., he said.
Navajo Nation President Jonathan Nez extended the closure of tribal executive offices this week until mid-August, citing recent increases in cases outside the reservation. The gambling company has aligned itself with executive orders.
Tribal officials reported 50 new confirmed cases of COVID-19 Thursday night and one additional death before a weekend shutdown. The total number of infected people in the reserve was 8,734 with 432 known deaths.
Health officials said 75,775 people underwent tests and 6,481 recovered from the virus.
The weekend closure that includes the business closure begins after sunset on Friday and lasts until early Monday morning. The tribe has also implemented daily and nightly curfews.
Residents of the reserve that extends to Arizona, New Mexico and Utah have also been mandated to wear masks when they are in public.
For most people, the new coronavirus causes mild or moderate symptoms, such as fever and cough, that disappear within two to three weeks.
But for some, especially older adults and people with existing health problems, it can cause more serious illnesses, such as pneumonia and death.
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