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Vol. 5, No. 7, July 2009, Early Out

Union Solution

Thu, Jul 09, 2009

Union Solution

One of the thorniest problems facing the Nevada casino industry these days is the constant threat of union organization on the casino floor. The industry understands that workers on the hotel and non-gaming side of the business can appropriately request unionization, and, if the proper procedures are followed and management cannot satisfy employee demands without a union, casinos will eventually accept it. Hotel and non-gaming unions are a fact of life in Nevada’s resorts, so while an operator may not be happy that its employees feel it necessary to be organized, it can recognize it.

On the casino side, it’s a different story. Because the integrity of the gaming operation is constantly on the line, executives must be able to remove any employee from the floor at any time they think it’s necessary. If there’s a hint of impropriety from any employee, a casino must be able to nip it in the bud. This means that traditional union procedures such as warnings, write-ups, discipline and eventual dismissal become problematic. A union becomes an alien third party on the casino floor, particularly a union that has no experience in the gaming industry.

That’s the case with the Transport Workers Union.

The TWU has signed up dealers at several casinos in Las Vegas. The union wants its members to believe that the reason they haven’t reached a contract agreement with any of these casinos for these many months is because the casinos are refusing to negotiate in good faith. The real reason is that the unions are dragging their feet in order to sign up more workers in other casinos to gain a larger negotiating advantage and bring more power to the union itself, with no regard for its potential “members.” The TWU is clearly scrambling for new members in the face of falling memberships in the transportation industries (maybe they can explain again how those industries relate to casino dealers?), and these workers are an easy target.

The TWU has failed to produce significant results in any of its contract negotiations. This should be a sign to its prospective members that it is ineffective, toothless and lacking true knowledge about how the gaming industry works.

But the fact that there are so many casino workers who have signed up with these do-nothing unions is disturbing. It shows there is a discontent at that level and that the industry needs to address it. Once they’ve signed up with a union, however, it becomes almost impossible to talk to the dealers because of the rigid regulations that govern communication during this supposed “negotiation” period.

So if the dealers are going to be unionized, why not negotiate with a union you can trust, with leadership that truly understands the industry? And who might that be? The UNITE HERE international union that currently represents the largest number of non-gaming casino resort employees in the country.

Now, there is something of a “gentlemen’s agreement” with UNITE HERE that the gaming industry won’t oppose non-gaming union organization if the union keeps its hands off the casino workers. Well, that horse has already left the barn, so why not allow UNITE HERE to organize the gaming workers?

The union’s leaders understand gaming like no other union. John Wilhelm, the president of the union’s gaming division, has been a staunch defender of gaming before Congress and in the media. But Wilhelm is also a tireless worker for his members, raising their wages, benefits and standard of living steadily over the past 20 years.

UNITE HERE’s leader in Las Vegas, the Culinary Union’s D. Taylor, is an effective representative of his members and understands the way gaming works. The Culinary’s cooperation with the industry during this downturn has been admirable.

And UNITE HERE also needs the industry’s help. It is under attack by the TWU and other unions seeking to represent gaming workers, along with a direct competitor, the Service Employees International Union. By encouraging UNITE HERE to get involved in the representation of casino workers, the industry will help it fend off the assault from these wannabe gaming unions and create a true partnership that will result in reasonable procedures that will protect the integrity of gaming both on and off the casino floor.

I know this is a radical idea, but there needs to be some creative thinking to make the future of the industry and its relationship with its workers healthy and good for everyone.

By Roger Gros

Roger Gros

Roger Gros is publisher of Casino Connection and editor and publisher of Global Gaming Business magazine, the industry’s leading gaming trade publication. Prior to joining Global Gaming Business, Gros was president of Inlet Communications, an independent consulting firm. He was vice president of Casino Journal Publishing Group from 1984-2000, and held virtually every editorial title during his tenure. Gros was editor of Casino Journal, the National Gaming Summary and the Atlantic City Insider, and was the founding editor of Casino Player magazine. He was a co-founder of the American Gaming Summit and the Southern Gaming Summit conferences and trade shows. He is the author of the best-selling book, How to Win at Casino Gambling (Carlton Books, 1995), now in its third edition. Gros was named “Businessman of the Year” for 1998 by the Greater Atlantic City Chamber of Commerce.

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