Harrah's Entertainment Agrees to Deal with Casino Hotel Workers

Hotel workers needed just a few weeks to reach a new union contract with Atlantic City casinos, in contrast to dealers who have been unable to reach a deal after almost three years.

Atlantic City resort workers came to an agreement with four casinos owned by Harrah's Entertainment, opening the door to signing a contract with all eleven New Jersey gaming hotels. Workers in Local 54 of UNITE-HERE gave 97 percent approval to the new deal.

Only Harrah's, Caesars, Bally's, and the Showboat Casino are officially tied to the new contract, but union spokesmen said the negotiating reps were told to be sure to reach a common ground that should be acceptable to all the casinos. Over 15,000 employees are represented by the union, and neither side wanted a walkout when casino revenue is in double-digit decline and almost 10,000 jobs have been lost.

The successful talks stand in contrast to those between the United Auto Workers, representing dealers at several casinos, and the gaming companies. Those talks have led to no results after two years, causing some to call for dismissal of the union.

"Harrah's is proud of its record as a responsible union partner as further evidenced by this contract which was developed and agreed to in just a few short weeks and without disruption to the business and employees," said Harrah's Eastern Division President Don Marrandino, clearly referring to the UAW talks.

Under the new terms, employees receive raises up to a dollar an hour, with a promise health care will remain as is, regardless of rising costs.