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STATESIDE
Stateside
Sharon Harris urges caution…
B
e careful what you wish for… it doesn’t union members. Less visitor spending means
always go well. The casino industry’s everyone, from casino dealers to maids to cooks, plus
workforce is learning that unionization is peripheral businesses and their employees, are
neither a panacea nor a salvation. In full providing fewer goods and services and receiving
disclosure, I grew up in a non-union fewer tips. Nevada now has the highest home
home. A post World War II entrepreneur, my dad foreclosure rate in the US and rising unemployment.
trusted his fate to his personal ambition, talent and Atlantic City has its own problems. The ongoing
hard work while building his business. To him, unions public hostility between the dealers’ union – the
stifled individual growth, and too often compensated United Auto Workers (UAW) – and casino operators
mediocrity over merit. has played out on highway billboards, television,
Conversely, from the 1960s through the 1980s, my newspapers and radio advertisements.
late mother-in-law Frances belonged to a large union The UAW has failed at securing first-ever contracts
while employed with the New York City School for dealers it represents at Bally’s, Caesars and the
District. My husband Norman reflects positively upon Tropicana, and has urged customers to stay away. The
the union’s place in work life. Her guaranteed salary UAW has specifically targeted Bally’s and Caesars
and retirement pension helped pay the bills. union, citing high executive salaries, unfair employee
As a union member, her compensation was treatment and an alleged failure to negotiate union
negotiated en masse, part of a large group. Even if contracts in good faith by parent company Harrah’s.
her job performance surpassed her peers, she Hundreds recently protested at the casino entrances
received the same paycheck, and could not easily on the Boardwalk. Harrah’s responded with a public
advance by showcasing her skills. accusation that the UAW will turn Atlantic City into the
Last year, American unions spent hundreds of next Detroit, where many blame the union infrastructure
Harrah’s
millions to help elect Barack Obama. The union and payments for the auto industry’s collapse.
movement has a presence in US politics, but the Local 54 represents more than 10,000 non-gaming
responded with a
public has mixed feelings about them. Eight months casino employees. They struck in 2004. However, this
public accusation
after Obama took office, one highly respected pollster year negotiations with the properties have continued
reports that 81% of the public does not seek union past the contract dates. Local 54 has publicly
that the UAW will
membership against nine percent who do. opposed the UAW’s tactics, warning that past revenue
turn Atlantic City
With a stagnant economy, there seems to be an levels are not returning anytime soon.
“under-the-radar” battle brewing between the private Local dealers are reacting to the UAW. On
into the next
and the public sectors. The gap between federal September 16, the National Labor Relations Board
Detroit
stimulus money earmarked towards projects and (NLRB) confirmed that at least 30 per cent of Trump
government positions with union workers against Plaza dealers signed a petition to decertify the union
those non-union groups runs in the billions. and reject it as their bargaining agent. Also, the
Sounds good so far for union labor, but dig NLRB will hold a hearing to determine if a new
deeper…there are always unintended consequences. election should be held. Dealers would choose to
Ironically, the very government they overwhelmingly keep the UAW representation or not. Other casinos’
voted for has not only been less helpful than dealers may or may not follow suit.
anticipated, but may have also instigated new While everyone is struggling, now is not the time to
economic obstacles. So far, the Employee Free Choice turn off customers, especially when facing growing
Act, called “Card Check”, which would virtually competition. Union members, this is a new day. Yes,
eliminate the secret ballot and supposedly grow the there have been layoffs, pension contribution
membership, has gone nowhere. Union leadership reductions and a tightening of health benefits.
expected quick passage, but it remains stalled. However, that’s happened everywhere. Across the
On another front, the federal stimulus money private sector there is lost business, salary freezes,
excluded gaming operations. Around the same time, pay cuts or fewer work hours, and more besides. For
President Obama warned against tax-deductible those folks, there is no recourse against an employer
conferences in gaming venues like Las Vegas. The by striking or urging customers to spend elsewhere.
result was the immediate loss of hundreds of millions A turned off customer rarely returns. As the industry
in potential visitor revenues for gaming jurisdictions. scrambles to maintain revenues, let’s not give the public
These double digit drops have hit those same any reason to spend their leisure dollars elsewhere.
10 OCTOBER 2009
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