Station to retain Reserve workers

Monday, Dec. 11, 2000 | 11:34 a.m.

Station Casinos Inc. will retain the 925 employees now working at the Reserve when it acquires the Henderson locals casino in early 2001.

A company spokesman said a provision that will ensure the employees' jobs will be retained was negotiated into the sales contract by current owner Ameristar Casinos Inc. Ameristar will sell the property for $70 million, taking a $57.2 million loss.

"The seller made the decision there (to negotiate the employment clause)," the spokesman said.

Station did not retain the 900 employees working at the Santa Fe hotel-casino when it acquired the property in October, but accepted applications from all employees to re-apply for their jobs, and transferred hundreds of its employees to the Santa Fe from other properties. To date, 200 of the 900 employees that worked at the Santa Fe previously have been hired by Station.

Station has said it will not automatically retain more than 1,000 employees of the Fiesta hotel-casino when it acquires that property in January, but is also accepting applications from current workers. Both contracts did not contain provisions requiring Station to keep the properties' employees.

The decision not to automatically retain employees at the two properties drew public protests from several organizations, including the Culinary Union and the NAACP. In both cases, the Culinary unsuccessfully lobbied the Nevada Gaming Commission to compel Station to retain employees when it acquired the Santa Fe and Reserve. Little has been said, however, about the Reserve purchase. The Santa Fe, Fiesta and Reserve are all non-union properties.

But at the Reserve, Station's purchase agreement requires it to "offer employment at will ... to all employees (of the Reserve) at substantially the same terms," including similar salary, fringe benefits, job responsibilities and locations. Station also agreed to continue all insurance and vacation benefits for Reserve employees.

The contract, however, provides that all employees will become employed on an "at-will" basis, giving Station the right to modify or terminate the employment of any Reserve employee after the sale closes.

The Reserve sale is expected to close shortly after Ameristar acquires Station's two riverboat casinos in Missouri for $475 million. The Missouri purchases are expected to close in January, pending approval by Missouri gaming regulators.