Culinary Union proposes two-year pact

Wednesday, April 17, 2002 | 11:25 a.m.

Facing economic fallout from Sept. 11 and a firm negotiating deadline only six weeks away, the Culinary Union is proposing an unprecedented two-year collective bargaining agreement with Las Vegas casinos.

The current five-year contract with some 36 casinos expires on June 1, and the union has given itself until then to reach a new deal during a period of financial uncertainty on the Strip in the aftermath of the terrorist attacks.

A two-year agreement, first proposed in talks last week with the five Park Place Entertainment properties, would allow the local economy to stabilize before the union sought longterm financial security for its members.

"This is a reflection of how things have changed after 9/11," D. Taylor, the union's newly elected secretary-treasurer, said Tuesday. "These are not normal negotiations."

The 50,000-member union has never before signed a casino contract that was less than three years, Taylor said.

Casino executives, including those at giant Park Place, would not say whether a two-year agreement is acceptable.

But Mike Sloan, general counsel for Mandalay Resort Group, which expects to begin discussions with the union next week, said there's little question that the Sept. 11 attacks changed the framework for the negotiations.

"Unquestionably people's concerns have been heightened since Sept. 11 on both sides," he said. "Business people have seen their revenues and profits drop precipitously, and the workers have seen some layoffs and some reduction in hours."

Taylor said a two-year contract is necessary if the union is going to achieve its top goal in the negotiations of ensuring free dependent medical coverage for its members.

"There's no way to forecast health and welfare costs beyond two years in this environment, and we don't want to be locked into some rate that doesn't fully cover benefits," Taylor said.

An agreement preserving those benefits must be reached by June 1 to keep afloat the union's $300 million health and welfare fund, Taylor said.

"That's our line in the sand," he said. "People have taken enough hits in this town. Anything less would be like pouring salt on the wounds."

Sloan, however, suggested that the casinos will be taking a hard line on the health care issue, as well.

"Nobody can guarantee free health care at a time when health care costs are skyrocketing," he said.

Those divergent positions are causing union leaders to remain guarded about the chances of reaching a deal in the next six weeks. For the first time, they are talking publicly about a possible strike.

Taylor and other union negotiators, still upset over the post-Sept. 11 layoffs, left last week's Park Place discussions more determined than ever to go to the mat with management in the coming days.

"They were quite defensive about their actions after 9-11 and their overall treatment of folks," Taylor said. "I think it's going to be tough all around the city. We have a lot of work to do."

Robert Stewart, senior vice president of communications for Park Place, said his company is committed to ironing out a new contract with the Culinary Union.

But he added: "We're sure that we both want to work together to help our industry continue to recover from one of the most challenging periods in history."

Taylor said the union's 1,500-member contract committee will meet next Wednesday at the Cashman Field Theatre to map out a strategy in the remaining weeks of the negotiations.

That strategy, he said, will include bracing union members for a strike should talks break down.

"We have to discuss that with folks and get them as financially prepared as possible," he said. "I think it would be suicidal for the casinos to move us down that pathway, but I don't put anything past the casinos after their actions of 9-11."

The union last staged a walkout on the Strip in 1984 during a bitter labor dispute that attracted national attention and paralyzed the Las Vegas economy for 75 days.

Sloan said he remained confident that a strike could be avoided this time.

"I'm still optimistic that we're going to work this out as long as both sides are reasonable," he said.

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