Jeff Simpson on an implosion, an impending strike and silly TV ads
Sunday, Nov. 4, 2007 | 1:46 a.m.
This week I'd like to note a few changes that have taken place in Las Vegas business, some for better, others for worse.
Because I watched a good Clint Eastwood movie last week, I'll call those changes the good, the bad and the ugly.
Good: The New Frontier is about to be imploded. Steve Wynn will be very happy, although the Fashion Show mall might want to double security on the Cloud, its ugly metal structure facing Las Vegas Boulevard and Wynn Las Vegas. Wynn told me earlier this year that he'd like it to disappear as well, calling it "hideous."
Bad: Longtime Nevada State Bank Chairman Bill Martin retired Friday after relinquishing executive control of the bank in September. He was the face of the bank in memorable TV commercials and other ads. An excellent leader with a fine sense of humor, Martin and his advertisements will be missed.
Ugly: Nevada foreclosure numbers remain the worst in the nation. Legislative Republicans including Sen. Warren Hardy of Las Vegas say the state shouldn't help speculators who took out risky loans, but not all of those in trouble are investors. Some are everyday folks who were persuaded to buy more than they could afford.
Good: You may not like the Culinary Union, but you have to respect it. Not only is the Culinary the state's biggest and most powerful union, but its leaders are also exceptionally savvy. They've lined up strong deals with almost all the city's biggest resorts.
Bad: One of the few holdouts remaining without a new Culinary contract is linen supplier Mission Industries. One casino industry professional told me that Mission is a sweatshop , has an inferior health care plan and pays such low wages workers can't afford to pay for health care deductibles. "Places like Mission Industries are the reason there are unions," he said.
Ugly: Hopelessly incompetent hotel operator Columbia Sussex, owner of the Tropicana, hasn't met with the Culinary in over a month. At their last negotiat ing session the operator, which is systematically slashing staffs and destroying employee morale at its Nevada casino properties ( which also include the Horizon and MontBleu in Lake Tahoe, River Palms and Tropicana Express in Laughlin and Westin in Las Vegas) told the union it no longer wanted to pay for the employees union health care and retirement plans. The Culinary will never accept those proposals and Culinary officials believe that, if Tropicana negotiators are serious, they must want a strike. Because that's what they'll get.
Good: Fresh & Easy food stores will open five Las Vegas-area outlets within the next two weeks. A subsidiary of Tesco, the United Kingdom's largest retailer, Fresh & Easy will emphasize quality and convenience, offering Whole Foods-style take out foods in locations much closer in size to a 7-11 than to a standard grocery store. Folks who've shopped at the company's British locations expect the store to be a big hit.
Bad: Slot bars that are trying to both serve food and allow smoking. At least convenience stores and grocery stores have eliminated cigarette smoke from their slot areas, as far as I can tell, but some bars are trying everything they can think of to keep smoking and food service. They should give it up and follow the law.
Ugly: TV commercials aired by the cable, telephone and satellite industries. Instead of focusing on their strengths, many companies try to ridicule their competitors. One of the worst I've seen is a Cox cable ad featuring two adolescent girls practicing guitar and discussing a boy. One girl says "He has Embarq," and then both girls simultaneously squeal: "Ewwwwwwww." Ewwwwwwww is right.
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