Negotiations Begin Between Union And Atlantic City Casinos

Atlantic City casinos will not be bargaining from their usual position of power this time around in negotiations with Local 54, the union that represents many of their workers. Instead, it will be the casinos begging for mercy.

The first round of negotiations began on Wednesday with three casino companies, Harrah's Entertainment, Trump Entertainment, and Tropicana Casino and Resort, presenting their initial proposals to union members. After day one, the union feels upbeat about the start.

"This is a very good place to start," said Bob McDevitt, President of Local 54 of UNITE-HERE, before commenting on the proposed three year wage freeze that was offered from each of the casinos, "no one wants a three year wage freeze. It will be up to the (contract) committee to decide what's in the workers' best interest."

The union has certain areas where they will be unwilling to compromise from their last agreement with the casinos. One of those areas has become increasingly important thanks to the economic meltdown that has destroyed business in Atlantic City casinos.

Workers have a "successor clause" in their current contracts that will expire on September 15th. The clause states that if new owners take over the casinos, they will be forced to honor the existing contracts. With many AC casinos in flux, this clause is non-negotiable.

At the same time that a rate freeze could hurt workers at AC casinos, it also could be a benefit. With the casinos losing money, it is likely that they could cut wages at any time. This will ensure that does not happen at least for three years.

If the economy improves, however, the workers will be locked into their agreed upon wages, and will have no chance at increased pay until at least a period of three years.

The negotiations will most likely continue right up until September 15th, when the current contract expires. The two sides are hoping that this round of negotiations ends on a better note than the last round, which ended five years ago in a stalemate.

September 4, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
Submit News!