Bennett backs Culinary

Lynn Waddell

Thursday, Jan. 29, 1998 | 9:15 a.m.

First published on Nov. 3, 1991.

The 550 striking union workers at the Frontier Hotel have at least one Strip executive on their side - Circus Circus Chairman Bill Bennett.

Bennett said the Frontier's final contract offer is unfair to the union employees.

"I just flat don't blame those workers," said Bennett, who heads one of the most successful gaming companies on Wall Street. "If I had the time, I'd get a stick and sign and go out there and picket with them."

The Culinary, Bartenders, Teamsters and Operating Engineers unions began picketing the Frontier Sept. 22 after management refused further negotiations. The hotel's final offer ended contributions to the Culinary and Bartenders union health care plan and pension fund.

Frontier General Manager Tom Elardi said he couldn't comment on any aspect of the strike or negotiations.

"The company refuses to do negotiations through the media," Elardi said.

Many neighboring casino executives also refused to comment oh the bitter strike, saying they aren't privy to the details of the contract.

Bennett, however, said he has studied the contract and compared it to the one signed by Circus Circus, which owns seven Nevada gaming properties, including the Excalibur Hotel.

"The Frontier bothers me more (than the Binion's Horseshoe strike) because they are unwilling to negotiate and they are trying to take things away," Bennett said. "The health benefits are terrible. There's no job security and wages are low.

"Virtually everything the hotel is demanding, I think is unfair."

According to the unions, the Frontier is paying for the strike.

Picketing has cut Frontier business by more than 50 percent, contended Jim Arnold, secretary-treasurer of Culinary Local 226. He attributed the numbers to inside sources who based the percentage on the hard money count and deliveries. So far, Circus Circus' hotels aren't losing business because of the strike, but Bennett said he fears the labor dispute will have a long-term effect.

"I think it's hurting them (Frontier), and the image of Las Vegas," he said.

Bennett said the strike could hurt Las Vegas because patrons who respect union picket lines may stop coming here.

If the union doesn't get a contract with the Frontier, it will discourage other hotels from negotiating with the union, Bennett said.

"I think it is going to have a domino effect," he said. "The union is going to be facing a lot of hotels down the road that are in a non-competitive position and can't pay 50 percent more in wages."

The family-owned Frontier has claimed its actions are necessary to cut costs. But Bennett said the Frontier's lower profits are more likely caused by poor management than high wages.

"I don't see why they are putting it off on the employees," he said. "We have been paying wages higher than the Culinary."

Bennett was also critical of the time it takes a new Frontier employee to qualify for full wages.

The Culinary agreement with the "Big Six" Strip resorts allows an experienced employee to draw full wages after three months on the job. Employees without experience draw full pay after six months.

The Frontier pays 80 percent until the employee works 260 shifts. Employees then are paid 90 percent until they work another 260 shifts. In other words, it takes a Frontier employee about two years to draw full pay, Bennett said

"It's very unfair for those people," he said.

In place of the union health plan, the Frontier has substituted a company plan requiring contributions from employees. The union has been paying for the plan since the hotel stopped contributing. The union's pension fund has also become an issue in the strike, as the hotel refuses to make contributions.

Circus Circus and other hotels contribute 45 cents for every hour worked to a worker's pension fund.

"People can't live on Social Security anymore," Bennett said. "The pension is the main thing people look forward to."

Frontier management has said it suspects wrongdoing in the administration of the Culinary's pension fund because of federal investigations into the Culinary Union in Atlantic City.

In a release Friday, Elardi said "the Culinary Union is corrupt and gangster ridden."

Bennett said he feels otherwise.

"I would bet my life that no hanky-panky is going on," he said. "There are too many people on both sides playing watchdog and overseeing the investments."

Arnold said the local pension fund is not controlled by the Atlantic City union. The local fund is administered by three local union officials and three representatives of the Nevada Resort Association, he said.

The union's health and welfare fund is connected to the international union, but it also has casino executives as administrators. Mike Sloan, vice president and general counsel for Circus Circus, was on the board for four years.

Elardi, however, was adamant Friday about not negotiating with the union.

"The Culinary has told us to sign the Big Six contract or sell. We will do neither," Elardi said in the release. "Therefore, the strike will never end."