Union chief: No offers to protect health care

Tuesday, May 14, 2002 | 11:04 a.m.

International Culinary Union President John Wilhelm said today that none of the four largest Strip gaming operators have put an offer on the table that will guarantee free health care insurance for his members.

"No employer has made an offer that would protect the medical plan for the duration of the contract," Wilhelm said.

Wilhelm also said none of the four companies -- Park Place Entertainment, Harrah's Entertainment, MGM MIRAGE and Mandalay Resort Group -- have given the union a "substantive" proposal on housekeeping workloads.

The two issues are the union's top priorities during its contract negotiations with the gaming giants.

Three of the four companies also want five-year collective bargaining agreements, and one, Park Place, has offered a 32-month deal, Wilhelm said. The union is seeking a two-year agreement because of the uncertain economic conditions in Las Vegas.

Though far apart on these issues, Wilhelm said he still believes he'll be able to sign a deal with one or more of the "Big Four" operators in advance of the June 1 strike deadline.

All five-year contracts covering 35 casinos expire on May 31. The union has set a June 1 strike authorization vote on Thursday.

Two of the major Strip companies -- Park Place, which meets again with the union today, and Harrah's -- have said they are anxious to reach an agreement.

And Wilhelm said he had a "constructive meeting" with MGM MIRAGE officials Monday, but came away from the discussions "puzzled" by the company's unusual negotiating alliance with Mandalay Resort Group, which he has criticized in recent days.

He said the companies want to negotiate together on the wage and benefit package, but separately on work-related issues.

MGM MIRAGE, for example, is willing to talk about housekeeping workloads, but Mandalay Resort Group told the union it considers the issue a "phony" one and won't negotiate, Wilhelm said.

"We can't make heads or tails out of this situation," Wilhelm said. "We didn't set another date to talk because we have been unable to figure out what this partial alliance means. I've never been confronted with this, particularly this late in the game."

MGM Mirage Senior Vice President Alan Feldman said he was confident further talks would take place.

"I think we had a constructive meeting," he said. "We still have more ground to cover. We're going to keep at it."

But Mandalay Senior Vice President Mike Sloan was less conciliatory.

"Almost every day in the newspaper I can see John is puzzled, and I'm puzzled by that because he's a smart man."

Sloan said his company has wanted to return to the bargaining table with the union for the past week, but hasn't heard from Wilhelm.

"Anytime people actually try to negotiate with the union, they seem to take offense," he said.

Mandalay Resort Group and MGM MIRAGE have taken a tougher stance on health care than Park Place and Harrah's. Both have indicated they are looking for workers to start contributing to health plans.

Feldman said MGM MIRAGE believes the union's $300 million health insurance fund will "require some belt-tightening" if it hopes to stay in business.

But union leaders have insisted that millions of dollars also will have to be pumped into the fund for it to be able to continue to cover free health care for union members.

Feldman said he was confident an agreement on health benefits can be reached with the union.