Talks continue as strike deadline nears for Indiana casinos

Tom Coyne

Wednesday, Jan. 12, 2005 | 9:28 a.m.

Talks between a union representing about 850 workers at four northwestern Indiana casinos and the companies continued Tuesday as a union spokeswoman said she was hopeful agreements could be reached before a Friday strike deadline.

"I suspect we'll be negotiating up to the last minute," said Clare Fauke, spokeswoman for Unite Here Local 1, which represents housekeepers, servers, cooks and bartenders at the casinos. "Our major issues are still outstanding."

The unions have pushed for improved wages and health insurance. Fauke said if agreements could not be reached with Harrah's casino in East Chicago, Blue Chip in Michigan City and the Majestic Star and Trump riverboats in Gary, union workers could go on strike at the beginning of the Martin Luther King Jr. holiday weekend.

"I would have to say that both sides are pretty serious about reaching a settlement, but we're not there yet," she said.

David Strow, a spokesman for Harrah's Entertainment, also said negoations are progressing and the casino is hopeful an agreement can be reached. If it can't, though, the casino plans to remain open.

Rob Stillwell, vice president of corporate communication for Boyd Gaming Corp., which owns Blue Chip, said the company would not comment on negotiations.

Calls seeking comment were left Tuesday with spokesmen for the other two casinos. Indiana's fifth Lake Michigan riverboat, Horseshoe Casino in Hammond, is not unionized and would not be affected by a strike.

The union has been negotiating with the riverboats since September, when the union said 93 percent of its members voted to authorize a strike. Union contracts have since expired.

Ed Feigenbaum, editor of the Indiana Casino Insights newsletter, said strikes against the casinos could be costly to everyone, including the casinos, the striking workers, the cities where the casinos are located and the state because it could mean a loss of tax revenue.

"It's in neither side's best interest right now to have a strike, and certainly not in the best interests of the so-called innocent third parties -- the local governments and the state of Indiana," he said.

Feigenbaum said the casinos might be able to stay open during a strike since gambling-table workers are represented by a different union, but that business would likely be hurt because the riverboats are in a strong union area.

"You have some of the major unions in northwest Indiana showing their solidarity by saying they will boycott casinos if they don't come to an agreement. That is potentially a big club they can wield over these casinos," Feigenbaum said. "It also may affect significantly the level of services and amenities that are offered."