Plaza, union in dispute over slot payouts

Brian Seals

Tuesday, April 21, 1998 | 10:09 a.m.

Lawyers for Jackie Gaughan's Plaza hotel-casino are appealing a ruling upholding supplemental pay for the casino's slot machine change attendants.

Lawyers for the downtown hotel-casino filed a notice of appeal to the Ninth Circuit U.S. Court of Appeals. U.S. District Judge David Hagen had ruled against the Plaza.

The case stems from a change in the hotel-casino's policy whereby non-union floor workers would be responsible for payouts of slot machine jackpots. It is common practice for change attendants to assist with the payouts and to receive tips for doing so.

The policy was changed when a slot manager noticed several attendants flocking a jackpot winner in April 1996. The policy was changed out of fear other customers may not be receiving adequate service at such times, according to court records.

When the policy was changed, the Culinary Workers Union Local 226 filed a grievance because the practice deprived unionized change attendants of wages. An arbitrator ruled in favor of the union and awarded a pay differential to change attendants of $19.50 per day for the time when the policy was in effect. The policy has since been reversed.

The total amount the hotel owed the workers was approximately $200,000, according to attorney Lawrence Epstein, who represented the Plaza.

"We feel the arbitrator's decision was not in accordance with the evidence presented," Epstein said. "We feel the decision was punitive."

The Plaza filed suit in June 1997 challenging the arbitration ruling, alleging that amount was excessive and requesting it be lowered to between $5 and $10 per day per change person. Hagen found in favor of the union March 19.