Columnist Jeff German: Reid is courting labor boss

Saturday, Feb. 3, 2001 | 11:05 a.m.

Jeff German is the Sun's senior investigative reporter. He can be reached at (702) 259-4067 or by e-mail at german@lasvegassun.com

NEVADA SEN. Harry Reid had many meetings last week on Capitol Hill.

But none may have been as important as his 45-minute chat with John Wilhelm, the president of the international Culinary Union, the most influential labor organization in Nevada.

Wilhelm said he just dropped by to pay a "courtesy visit" to Reid, the senior member of the Nevada delegation and the Senate's assistant minority leader.

But Wilhelm, rumored to be in line to succeed AFL-CIO President John Sweeney one day, had a lot on his mind last week as he sat down with Reid.

High on Wilhelm's priority list was countering an IRS campaign to raise withholding rates for tips among casino industry workers who make up the majority of the Culinary Union's Las Vegas membership.

Word of the latest IRS intrusion on tip income had gotten back to Reid and the rest of the Nevada delegation several days before Wilhelm's visit.

D. Taylor, the Culinary Union's hard-working Nevada director, had sent a letter to top casino industry executives in Las Vegas warning of the dangers of the IRS campaign.

The letter began on a pessimistic note intended to grab the attention of industry leaders.

"There is no question that perilous storm clouds are building over the gaming industry in Washington D.C.," Taylor wrote. "Anti-gaming forces and the nuclear industry have good reason to believe that they will further their agendas under the new administration.

"It is certainly my sincere wish that the unity between the gaming industry employers and the union becomes strengthened in the face of this adversity."

That unity was tested recently during the union's battle to organize 2,500 workers at the Rio hotel-casino, owned by gaming giant Harrah's Entertainment Inc. But now that Harrah's has agreed to negotiate a contract with the union, the relationship is on the upswing.

Taylor described in his letter the troubles that will occur within the casino industry if the IRS is successful at raising the tip withholding limits.

"I urge you to commit your company to this effort," he wrote. "In addition, I think it would be valuable to have a meeting between the (Nevada Resort Association) and myself so that we can jointly plan a course of action."

Taylor's letter naturally found its way to the industry's Washington lobbyists and the Nevada delegation on the Hill.

Enter Wilhelm again.

Minutes before the Culinary Union boss arrived at Reid's office, the delegation had decided to write a letter to IRS Commissioner Charles Rossotti Jr., protesting the new tip plan. That gave Reid an opportunity to demonstrate to Wilhelm that the delegation planned to go to bat for the Culinary Union.

Impressed with the quick action, Wilhelm let it be known that he also would welcome a strong commitment from the casino industry in the fight.

In return, he offered to help the delegation and the industry in their high-profile sports betting battle with the NCAA. Wilhelm shares the industry's view that the NCCA should be spending more time addressing illegal betting in America than legal wagering on college sports in Nevada.

"We agreed to keep an open dialogue," Reid said. "The Culinary Union has a lot of contacts in Congress."

And for the moment, it looks as though the casino industry is ready to join forces with Wilhelm.

"In the past, it's been a beneficial relationship to both of us," one casino insider said. "This is another example of how we can work together on an issue of common concern."

Amid all the talk of turning Attorney General John Ashcroft, a known gambling foe, into an ally in the sports betting fight, it makes sense that the industry would want a friend like Wilhelm in its corner, too.

It may explain why Reid's meeting with the labor leader last week was so important.