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Atlantic City Finds Casino Union Negotiations a Slow Process

If casinos learned to prize their customers and labor and treat both generously, perhaps the casino industry would return to its previous status as "recession-proof."

While unions have made inroads at organizing dealers in Atlantic City, the progress so far at reaching labor contracts with the casinos has gone so slow as to be almost nonexistent. The United Auto Workers won the right to negotiate for dealers at four New Jersey casinos, but talks have proceeded at a snail's pace.

After winning representation elections at Caesars', Tropicana, Bally's, and Trump Plaza, the union has sought to reach goals of higher wages, better health care, more job security, and increases in full-time hires. Talks have been underway with Caesars' for over a year. Bally's and Trump Plaza have yet to begin negotiations, while Tropicana ownership is in a state of flux.

The casinos and the union have agreed to keep discussions private and not negotiate through the media; but, even though labor experts say the process takes quite a bit of time in most circumstances, employees who celebrated the organization of labor now wonder when benefits might be reaped.

Members of the work force pointed out how crucial they are to the operation of the casinos, and mention how easily the companies found money to invest millions in consultants and lobbyists to oppose the union. Management responded by noting the precarious financial situation in Atlantic City, with revenue downturn consistent over the last year.

Also leaving an air of uncertainty is the looming smoking ban, a ridiculous law likely to be ratified by the City Council Wednesday, and scheduled to go into effect October 15th. Casino operators predict further losses once the new policy is enacted.

Still, it seems casino management is afflicted with a common infection of corporate America: the undervaluing of labor in the naturally symbiotic relationship between management and its workers. If employees in this trillion dollar industry were treated well in the first place, unions would not be making inroads in Atlantic City, Las Vegas, and at casinos nationwide. 

Corporate greed requires that the value of property and physical structures be placed at a premium, while employees be treated as disposable, easily replaced numbers rather than as valued components in the success of the business. Accountants who canot tell a double down from a pat hand make decisions to try and throttle a few pennies from dealers, while the company rakes in billions.

If casinos learned to prize their customers and labor and treat both generously, perhaps the casino industry would return to its previous status as "recession-proof."

Published on April 17, 2008 by JoshuaMcCarthy

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Recent Comments

Posted by: howaboutitWhen: 04/18/2008 05:33:41 PM EST
This is a very good article. All that is mentioned is true and makes alot of sense.Even the renovations at the Tropicana, costing millions and even there new ad campaigns, costing millons. Come on, they got the money when they need to have the money.
Posted by: michaellgoochWhen: 04/20/2008 09:28:43 AM EST
Before we start waving the flag and singing the praises of unions, let's pause for a little thought. I have worked on both sides of this issue in my 40 year career. I have seen union organizers shoot out the windows in a single mother's home - with her and her kids inside! I witnessed a single woman that ran a small ranch have all of her livestock killed because she had crossed a picket line. I have seen concrete blocks dropped from interstate overpasses onto trucks carrying supplies and materials to a plant that was one strike. In addition, I have been involved where the Washington, D.C. leadership of a union has over-ridden the "democratic" vote of it's membership and rejected a strike vote all in the name of "keeping those dues flowing." In my management book, Wingtips with Spurs, I devote an entire chapter to labor relations. While in general, I am not a union hater (in fact, I have several union friends) However, I can not tolerate someone saying that companies engage in dubious tactics and fail to mention the history of unions. Michael L. Gooch www.michaellgooch.com

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