Columnist Jon Ralston: The great gaming-union schism

Saturday, Sept. 9, 2000 | 2:31 a.m.

Jon Ralston, who publishes the Ralston Report, writes a column for the Sun on Sundays and Wednesdays. Ralston can be reached at 870-7997 or by e-mail at ralston@vegas.com

SINCE THEIR sub rosa symbiosis commenced about 15 years ago, whenever the gaming industry has needed the Culinary Union's help, the labor Goliath has stood tall.

From Capitol Hill to other casino marketplaces to Carson City to local government, the strangely cozy labor-management relationship has benefited both groups, especially the gamers. But rarely have these political bedfellows had the kind of serious lovers' quarrel as they have this year, most recently illustrated by the Culinary's determination, over the objections of its Establishment partners, to oust Clark County Commissioner Mary Kincaid.

That race, though, was only part of the schism that has threatened to open between the most powerful labor and management groups in Nevada politics. The other dividing line is embodied in the personage of state Sen. Joe Neal, a longtime labor stalwart whose raison d'etre has become increasing the taxes of the industry that employs the Culinary's members. And just before the balloting, Neal was the subject of a fascinating and tendentious missive sent from the general president of the Culinary's parent union, not coincidentally as contracts loom and nonunion chieftains threaten to make trouble for the union.

The Culinary has sided with the Strip against Neal on his 5 percent tax increase proposal for the same rationale that the labor folks helped the casino pack those federal anti-gaming panel hearings with workers -- anything that hurts gaming hurts gaming jobs. But the union and other labor groups still insisted on supporting the re-election of Neal over his opponent Uri Clinton.

In fact, the AFL-CIO, of which the Culinary is a member, sent out a mail piece during the last week that may have helped put Neal over the 50 percent mark, which he surmounted by only 6 votes. The brochure attacked Clinton as "being financed by powerful gaming interests who want him silenced."

That mailer was sent about the time that John Wilhelm, general president of the Hotel Employees & Restaurant Employees International Union, sent a letter to the local leadership. The content of the missive makes it clear why Wilhelm decided to copy many gaming CEOs, who appear to be the actual intended audience for the sentiments therein. Among those copied: Mandalay Resort Group's Mike Ensign, Park Place's Arthur Goldberg, MGM MIRAGE's Terry Lanni, Harrah's boss Phil Satre and Desert Inn chief Steve Wynn. Not surprisingly, any CEOs seen as anti-union were not on the list -- I assume Gondolier Numero Uno Sheldon Adelson is not waiting for his copy to arrive.

In the letter nominally addressed to his local brethren, Wilhelm began: "I continue to agree with your decision to support Senator Joe Neal's re-election, in spite of his sponsorship of the gaming tax ballot referendum, which we strongly oppose. When gaming executives complain about our support of Senator Neal, I point out to them that there are a variety of considerations that go into anyone's support for a particular candidate. For example, many gaming executives support George W. Bush for president, even though he has been anti-gaming. A number of others supported Senator McCain, who is leading the charge against sports betting in Nevada."

Message to CEOs: If you guys can play both sides, we can, too. Wilhlem concluded his memo by invoking a statement made by Neal -- and being exploited by the gamers in their quest to kill his initiative -- that attacks the industry as "a backward low-wage, low-skill industry."

Wilhelm touts that some gaming employees can own a home and says he considers it "an affront to our union for Senator Neal to campaign against our members' jobs."

Message to CEOs: Don't worry, we'll defend you guys on this one.

Wilhelm clearly is trying to keep labor-management peace at a time when the bonds are as frayed as they can be because of the political and economic environment. Can the gamers forgive the unions for helping re-elect Neal? Will the unions forgive the gamers for not helping them try to erase Kincaid?

Probably. But magnanimity in defeat is not always so easily accomplished.