Mandalay employees to keep existing benefits

Friday, Feb. 25, 2005 | 10:53 a.m.

Front-line employees at Mandalay Resort Group properties would keep their existing seniority, health care plans and benefits packages and wouldn't have to reapply for their current jobs when MGM Mirage completes its acquisition of the company, executives said at Thursday's Nevada Gaming Commission meeting.

It was the first indication of what's in store for Mandalay employees since the deal was announced in June. MGM Mirage officials have been hesitant to talk directly to Mandalay workers and have been silent about the issue to comply with federal securities regulations.

Tuesday's Gaming Control Board recommendation of approval gave MGM Mirage's legal team the confidence it needed to begin talking about what is planned. MGM Mirage Chief Executive Terry Lanni said a "best practices" study would begin to find the best policies offered by both companies and then integrate the superior practice to the merged company.

Lanni said the company did that in its acquisition of the Primm properties and Mirage Resorts Inc.

In the meantime, Lanni said, Mandalay employees would keep their benefits.

MGM Mirage officials said they have begun talking with high-end department heads at Mandalay and would soon begin talking with rank-and-file workers.

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