Casinos get lucky — union holds off on strike plans

John Curran

Wednesday, Sept. 15, 2004 | 11:12 a.m.

ATLANTIC CITY -- Thousands of casino and hotel workers stayed on the job early today despite the expiration of their contract, putting off a strike as negotiations continued.

Bartenders kept setting up drinks and cocktail servers continued to roam the aisles of slot machines as officials from the 17,000-member Local 54 of the Hotel Employees and Restaurant Employees Union said there were no plans to strike.

"We'll stay on the job," said Chris Magoulas, a spokesman for Local 54. "We're doing everything possible to reach an agreement. We don't want to have to strike. We know a strike would be a disaster for Atlantic City and for everyone involved."

At issue: health care costs, the use of subcontractors who employ nonunion help and the term of the contract. Casinos want a five-year deal. The union wants a three-year contract.

On Tuesday, union negotiators met behind closed doors with representatives of Harrah's Entertainment Inc. and Caesars Entertainment Inc., which together own five casino-hotels in Atlantic City.

On Monday, the union negotiated separately with Tropicana Casino and Resort and with Trump Hotels & Casino Resorts, which owns three casinos here.

A member of the union's negotiating committee called the atmosphere of Tuesday's talks positive, but said no agreement was imminent.

"Some progress has been made on economic issues and some smaller issues," said Al Tabei, a bartender at Bally's Atlantic City who serves on Local 54's executive board.

Casino officials weren't talking. Calls seeking comment from Harrah's spokeswoman Susan Kotzen and Caesars spokesman Brian Cahill were not immediately returned.

The union last struck in 1999 with a three-day walkout that forced casinos to curtail some services and put executives and managers to work in the vacated union jobs.

If a strike is called, about 14,500 employees would be affected. The other 2,500 work at Borgata Hotel Casino & Spa, which signed a separate four-year contract with Local 54 when it opened last year.

"We're not ruling out a strike at anytime in the future, if negotiations don't produce anything," Magoulas said. "We can't have health care cuts, and we can't have low-wage, low-benefit jobs overwhelming Atlantic City."