Labor leaders defend Gallagher

Kirsten Searer

Tuesday, Oct. 5, 2004 | 9:24 a.m.

Some labor officials have expressed anger at new ads that charge Democratic congressional candidate Tom Gallagher laid off workers and then took a fat bonus after Sept. 11, 2001.

Gallagher, the former CEO of Park Place Entertainment, now Caesars Entertainment, was Park Place's top executive when it laid off 2,100 workers in the fall of 2001.

The same year he received a $3.15 million compensation package, including a $780,000 bonus, stock options valued at $1.4 million and a salary of $975,000.

Television and mail ads put out by the Republican Party and the campaign to re-elect Rep. Jon Porter, R-Nev., charge that "Tom Gallagher hit the jackpot" while working families suffered.

But labor leaders argue that Gallagher did more than any other chief executive on the Strip after Sept. 11 to limit layoffs and provide programs to help employees with health care costs and other expenses.

Danny Thompson, executive secretary-treasurer of the AFL-CIO of Nevada, called the charges against Gallagher "ridiculous and obscene."

"The truth is exactly the opposite," Thompson said. "Tom Gallagher went out of his way to help people. Most CEOs don't go out of their way to help people."

Gallagher laid off a smaller percentage of employees than other Strip companies, allowed some employees who would have been laid off to work fewer hours while still collecting benefits and gave more than $2 million of company money toward foundations that aided displaced workers, Gallagher spokeswoman Mara Gassmann said.

In comparison, MGM Mirage Chairman Terry Lanni received a total of $2.7 million in compensation in 2001, including a $1.35 million bonus, according to filings with the Securities and Exchange Commission. MGM Mirage laid off about 6,000 workers, but all but a few hundred returned in one form or another.

Mandalay Resort Group laid off about 4,500 workers.

D. Taylor, executive secretary-treasurer of the Culinary Union, said it is "despicable" to invoke the memories of Sept. 11, especially when Gallagher worked so hard to help workers.

"If he was that worried about it, he should not accept any money from any casino that laid people off after 9-11," Taylor said of Porter.

The layoffs occurred while Porter was still a state senator and the 2001 legislative session already had concluded.

Porter campaign consultant Mike Slanker said Porter couldn't introduce legislation for displaced workers at the time, but one of the first things he did as a congressman was to vote for an extension of benefits for unemployed workers.

Porter also was the lead sponsor of a bill to give unemployed workers $3,000 that they can use for job training, child care, transportation or career counseling. The House passed that bill in June and it has been referred to a Senate committee.

"Jon's done a great deal to help folks get back to work, to find new jobs or train for new jobs," Slanker said.

The Porter campaign thought it was "telling" that Gallagher took the bonus and stock options while his employees were suffering, Slanker said.

Kristie Cavanagh, a food server at Ventuno Cafe at the Flamingo, said she was "shocked" to see the ads criticizing Gallagher.

"I was very upset, especially working in his company and seeing what he did do for us," she said.

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