BIZ BUZZ:

Jeff Simpson answers slams in a full-page ad taken out by the owner of the Tropicana

Sunday, Feb. 3, 2008 | 2 a.m.

I was quite surprised by the full page color ad the Tropicana took out on page 2A of the Review-Journal on Thursday, slamming me, the column I wrote last week and the Culinary Union.

The Tropicana’s strange ad, which folks in the advertising business estimate cost the casino company about $16,000, is just another example of the incompetence of its Kentucky-based owners, Columbia Sussex Corp., and further proof that my columns taking the company to task have been right on target.

First, please indulge me in my response to the Tropicana ad.

The ad says my column is utter fiction.

I stand by the truth of my column and the sources who told me about the property’s payroll problems, as well as the dozens of folks who wrote and called after the column appeared to add to the litany of complaints I’d already received about how Columbia Sussex runs its six casinos in Nevada.

Second, the ad claims the Culinary Union concocted a story about paychecks that couldn’t be cashed and tricked me into reporting it.

That is not true. My first sources were two non-Culinary Tropicana workers who told me about the paycheck troubles.

Then three Culinary members who worked at the Trop not only confirmed what I had heard from my first two sources but also said there were more than 200 recent instances of workers being underpaid.

Third, the ad claimed that I failed to call the Tropicana to verify the workers’ claims.

That’s right, I didn’t call the Tropicana, but I have called the company’s headquarters in Ft. Mitchell, Ky., trying to speak to Columbia Sussex Chief Executive Bill Yung or his son Joe Yung, the company’s development director, at least six times since December, when Tropicana Atlantic City’s license was yanked by New Jersey gaming regulators.

They have never called me back. Nor have they had a company spokesman or nonstaff flack call me back.

My phone number and e-mail address are right at the bottom of my column, every week.

I don’t expect Columbia Sussex executives to like me or what I write about them, because I’ve been very critical of them.

But they deserve my criticism.

It’s my opinion — and the opinion of many folks with a lot of experience and success at the top of the gaming business — that Columbia Sussex’s strategy of cutting staff is doomed to fail.

It’s also my opinion that the Tropicana’s contract offer to the Culinary is an insult to the union and a recipe for disaster for the property.

The Trop’s contract offer asks the property’s 700 Culinary workers (down from 1,100 when Columbia Sussex bought the Tropicana) to give up their hard-won union health plans and guaranteed 40-hour workweeks, along with other insulting givebacks.

The union will never accept those terms, of course, at the Tropicana or anywhere else.

I’ve also written about the findings of the New Jersey regulators who refused to renew the license of Tropicana Atlantic City.

Their opinion’s conclusion about the Columbia Sussex executives was clear: “The applicants could have taken the time to educate themselves in what it takes to operate successfully here, or they could have hired and retained sufficient staff knowledgeable in those processes. They have done neither and must bear the consequence. So too must their applications fail for lack of good character, honesty and integrity and contumacious defiance of the regulatory process.”

It’s my opinion that Columbia Sussex flouted New Jersey gaming regulations and that Nevada regulators should file a formal complaint against the company, hold a public hearing and consider pulling its six Nevada casino licenses. I believe regulators would be justified in yanking the licenses.

And it is also my opinion that if Columbia Sussex quits spending its money on absurd newspaper ads, the incompetent operator might be able to rehire one of the hundreds of workers it foolishly let go.

Discussion: 22 comments so far…

By mgkrebsii

2/3/08 at 11:39 a.m.

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Jeff,

You should ALWAYS give a spokeshole the opportunity to explain.

Next, the Trop can't get its payroll out on time or accurately, yet they can spend $16,000 for a full page ad? Hope that ad was cash up front.
By CAlvarez

2/3/08 at 2:19 p.m.

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Jeff,
As a non-union employee of the Tropicana, don't you think you are being a bit harsh.When you talk about a stupid error in payroll that really wasn't that bad and now your saying Columbia Sussex should get their Nevada licenses taken away. Do you not consider the fact that most of the people that work there have been there a long time.We may not agree with Columbia but they haven't imploded us and we all still have job's.
By npc

2/3/08 at 2:54 p.m.

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I am not an employee of the Tropicana, nor am I affiliated with the Culinary Union, just in case anyone suspects me of either. Las Vegas deserves better than Columbia Sussex. I applaud Jeff Simpson for tenaciously following this story. Please keep up your good work.
By dakota_kid

2/3/08 at 5:58 p.m.

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Jeff, i'm sure your calls to Donald Trump and Bill Gates go right through also. It's obvious that Columbia Sussex does not want to have it's workers unionized. In that regard they are no different than a lot of other employers. Your articles are nothing more than sounding boards for union rhetoric. Why don't you just cut out the middle man and let D. Taylor write his own column. Being anti-union is not a violation of Nevada gaming regulations. If you can come up with some real gaming violations then by all means call for their license revocation. Until then save up whatever funds the union pays you, buy your own business and run it however you see fit.
By russandiego

2/4/08 at 6:34 a.m.

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Jeff, As a visitor to Las Vegas 1-2 times a year, one of the best parts is outstanding customer service. Very tourist friendly workers everywhere from downtown to the Venetian. It comes from employees being treated well. I have followed your Trop/ Sussex stories online. I can't imagine their workers being happy right now and believe customer service must be suffering. I support unions and never will go to the Trop or other Sussex places unless they shape up. Thanks for the great work.
By terjen

2/4/08 at 7:05 a.m.

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It does ultimately come down to the future of Las Vegas. Many business sytems call for executives to cut costs, to enhance the corporate bottom line and the exectuive's bonus. This pressures workers into multitasking everything and/or the threat of being replaced by someone willing to do more for less, or contracting out becomes the motivational factor.
It works, although it is a downward spiral for the customer as service, cleanliness and unrepaired/unreplaced infrastructure suffer under this system. The competition that does offer a clean environment, new modern facilities and excited motivated well paid employee's will be the industry leaders. Columbia Sussex's corporate greed just insures they will be the bottom feeder.
By flp60

2/4/08 at 2:42 p.m.

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On behalf of (the majority of)my fellow Tropicana employees I would like to applaud Mr. Simpsons article. It was both insightful and honest. As a long time employee of the Tropicana it has been somewhat distressing to experience the decline of our workplace since Columbia Sussex took control. Managements incompetence has turned a once proud casino into a dirty, empty haven for prostitutes and pimps. The under staffing of security has put both patrons and workers alike at risk (often only 2 security guards for the whole casino on a weekend!)As for the negotiations regarding our contract, they have no intentions at all of reaching a serious settlement. The Nevada Gaming Commission has stated that gross mismanagement is not in itself a violation of any laws. But I would ask them is it not their responsibility to ensure that Las Vegas has responsible and competent owners when so many jobs and welfare are at stake? As for those that would say that Columbia has a right to manage as they see fit. Well they also have a obligation to both their employees and the community to uphold the high standards of other Nevada casino owners."This isn't Kansas (Kentucky)Dorothy"(BillYung)!!
By CynicalObserver

2/4/08 at 3:54 p.m.

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Nevada Gaming Commission says: "Tropicana operators, no problems."

New Jersey Gaming Commission says: “The applicants could have taken the time to educate themselves in what it takes to operate successfully here, or they could have hired and retained sufficient staff knowledgeable in those processes. They have done neither and must bear the consequence. So too must their applications fail for lack of good character, honesty and integrity and contumacious defiance of the regulatory process.”

Tony Soprano would be so proud of his state's Gaming Commission.
By nontraditionalthinker

2/4/08 at 3:59 p.m.

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Here's the answer that fixes this problem once and for all...
James Packer.
He bought the Canneries, the Rampart deal, has a big piece of Fountainbleu and Crown Las Vegas.
Clearly he is setting the table to be a big part in the 6 player game of Las Vegas Monopoly.
Please Mr. Packer, step up and grab that dilapidated run down Gold Spike of a strip resort, implode it and build something worthy of its amazing location.
And welcome to the big game!!!
By JLOKC

2/4/08 at 5:29 p.m.

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Let's get real. The Strip is a union stronghold. Always has been, always will be. Columbia Sussex has no basis to change the way things are done, or the pattern of the Union agreement.
They have no friends in leadership positions in Clark County. Their purchase price has established the value of the Tropicana. It is their duty to uphold that value by maintaining it in a proper fashion. I have been there in August and November, it is the most poorly maintained property on the Strip. I have never read anything by anyone who says they want to stay at the Trop, or if they did that it was a first rate property. They are clearly in over their head, either by cashflow problems, or no experience "Running with the big dogs". They either need to change or go home.
By TropWorker

2/4/08 at 6:40 p.m.

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I have been a Trop employee since the 70's! I have never seen employee morale so LOW! Both Union & Non-Union employees have had payroll & health insurance problems! In fact, here it is, Feb. 4th and we haven't gotten our W-2 tax forms yet!!! Is Columbia Sussex that incompetent? Surely they must know that Federal Regulations require that W-2's must be received by Jan. 31st! Every tip earners income is dreadfully decreased! In the last Union/Mgmt negotiation, Columbia recommended that pregnant women be terminated at pregnancy leave, and when they wanted to return to their jobs, those jobs would not be guaranteed, and that they would have to re-apply at Human Resourses for "a" job!! Isn't that also against Federal Regulations? Columbia wants to have a part-time work force for it's entire property making just above minimum wage & have those employees pay $300-$500/month for health benefits! How do they expect us to pay our bills? By getting a second job? Yung & company need to get booted from our proud State! They are a menace to our quality of life!!!!!
By dougshel

2/4/08 at 6:51 p.m.

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If you don't like your job. Quit!!
By TropWorker

2/4/08 at 8:34 p.m.

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dougshel must either be a COMMUNIST or a "shell" for Columbia Sussex!! He must not know what it takes for a family to survive in 2008, or he must be independently wealthy & does not care about the working people who make this country go!!!! Probably a Columbia S*cks A*s Shill!!!!!!!!!
By LaughlinTrop

2/4/08 at 10:31 p.m.

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I can't say as I always agree with Jeff Simpson, he's somewhat too liberal for my tastes. However, with the Columbia Sussex reporting, he's right on the money.

Not only is this company an incompetent bottom-feeder, Yung is actually proud of the bottom feeder rep and he's too arrogant to realize he's incompetent.

The casinos have good management, the problem is that Bill Yung micromanages and has the last final word on everything. So, good management, crappy owner. Shame he can't be voted off.
By gqbossing

2/5/08 at 10:08 a.m.

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I’m not a supporter of unions, of the author of this article nor have any opinion of Columbia Sussex other than the Tropicana LV property I’ve been to which they are the owners of.

I’m from Missouri and witnessed the reports from the Gaming Board there which denied Columbia Sussex a license years ago, and have witnessed the AC proceedings recently. I find it hard to believe the company is 100% as bad as described; they simply wouldn’t have been in business or successful if that was the case, however I do find credibility in a lot of what has been said against Columbia Sussex; a company doesn’t get this much scrutiny without deserving it.

I’ve been in the Tropicana a few times for the Comedy Show in the past year and drive by there almost daily. That property has become such a dive since they have taken ownership it’s unbelievable. My experiences there have never been very good there in the 6 years I've been here; I always thought it was an unfriendly dirty place in serious need of improvement, but I've noticed the past year the place has graffiti which isn’t removed quickly, has a lack of security on site, employees who don’t care or take ownership in the property, a feel as a dangerous place, and both the owners and employees fighting each other.

In my opinion the Tropicana LV was a sinking ship well before the current owners took over, but I do blame the current owners for tipping the property to being probably the worst on Las Vegas Blvd. The best solution I see is them selling the property and having it razed by a new owner. Tropicana Ave. and LV Blvd. South is a prime (valueable) location, it’s such a shame that it’s being used in such a manner.
By TropWorker

2/5/08 at 1:01 p.m.

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If you go to the Trop late night, expect to see an assortment of hookers. In the Celebration Lounge (On the right of the Main entrance, next to the Casino) some nights there are more hookers than patrons. Super Bowl weekend, about midnight, the were 3 hookers at the elevators by the Paradise Tower propositioning every man who got on or off! There have been other reports of pimps trying to recruit female guests to become hookers. Where is Security???? Not enough security to handle it all. When Columbia took over in Jan. '07 they laid off 50% of Security. So many cars were stolen, broken into, or people mugged, that they had to reluctantly bring some back to patrol the outside of the property! They got rid of dozens of slot machines & replaced them with vibrating recliners. Guess they don't need to hire slot people if there are less slots. Too bad the only people you see in those chairs at night are hookers, looking for prospective johns.
By dakota_kid

2/6/08 at 11:14 a.m.

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TropWorker, you spout off like a typical disgruntled casino worker. Throw out "facts" you don't bother to check out. As an employer, I can tell you that W2's need to be mailed on or before January 31st. Not received. A fact you could have checked out yourself but i guess that would require work. I agree with you that everyone should be able to make a decent living at their job. I don't see how your attitude makes your employer want to give you anything. If things are ridiculously bad there why hasn"t the union gone on strike already? As for management. I googled the tropicana las vegas and saw that the general manager has also been an employee at the trop since the 70's. So are 70's tropicana employees all incompetent? No wonder Aztar was in a hurry to dump the place. The general manager it says started as a dealer in the 70's and look at her now. You must not have any ambition at all. If you are looking for someone to blame start with yourself. Employees make a business and yours has been going downhill for some time no matter who owned it. If I was a prospective buyer of the property I would do what the stardust did and shut down during the new construction and hire over from scratch. No employer wants to inherit bad employees.
By TropWorker

2/7/08 at 9:20 p.m.

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KidDakota: I have been a Trop Employee for over 30 years, since the '70's . Maybe I was mistaken re: W-2's, however, here it is 2/07/08; haven't yet received mine yet as have other employees in my dept. From what I understand, line #7 on the w-2 is wrong on many tipped employees w-2, CS has told all those employees that it will take 30+ days to resolve & return w-2's. Why should they wait to receive their tax refund due to CS incompetence. Will CS pay interest? NOT!!!! Let's face it; CS needs to go home to Kentucky & leave Vegas to us longtime Vegans!!!
By problemchild

2/18/08 at 4:13 p.m.

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Jeff, not only are you right on about your comments regarding Columbia Sussex, you can totaly rely on your sources. I work at the the River Palms in Laughlin. Same stories just a different Casino. The trouble is, Mr Yung doesn't care, you are arguing with an idiot. We have barely enough employees to cover any given department for any given shift and now we understand that they want to cut more jobs. Customer Service? Good Luck!!!!!!!!!!!
By problemchild

2/23/08 at 4:27 p.m.

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Well I believe Mr. Yung has outdone himself in stupidity. At the River Palms, we are changing paydates every month, not that they will tell us officially,(I quess we will just have to wait till it happens), because Columbia Sussex does not have the funds to pay everyone on the payroll, he spends no money whatsoever on our Casino nor the Trop in Laugblin, I think we can safely assume he spends no money on any of his properties, yet he donates a million dollars to a campaign fund, and spends 7 mil on property in KY. So now if he gets his way, we will see him spend any and all the money he does make on all the other properties for his new Casino in KY. You will be able to follow the quick and painfull progress of desecration at the new Casino, all the while the other properties suffer, even more.
By problemchild

2/23/08 at 4:44 p.m.

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Hey Dakota_Kid - Either you work for Columbia Sussex in KY or you are one of the brainwashed Management. If you are an actuall employee at any of the properties Mr. Yung ownes,(lets call hin what he is, an arrogant ignorant ), you too must be a proven and complete arrogant ignorant, or maybe you are a person with no moral principals or conscience. Which one, huh?
By former_employee

5/28/09 at 11:03 p.m.

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I worked for Columbia Sussex for many years in a hotel. Bill Yung spends NO money for anything except for his yacht and crew, toy trains and a few other fun things he enjoys. We had carpet in the guests area on the way to their rooms, that was split apart and thread bare. He left it that way for several years. Finally he was threatened with losing his flag so he replaced the carpet. The replacement carpet was $2.99 a yard! He pays as little as possible and keeps the employees to a minimum. All maids have a limit on how long they can spend cleaning a room. They are paid very low wages. A room is to be spotless, but they have to hurry to keep the time under the requirement. If a room is "trashed" that makes no difference - clean it quick! The retirement package is pitiful. After 19 years, I retired with $15,000.00. I couldn't believe it! He will never let loose of a penny if he can help it. Then he let Joe start playing with casinos. It reminded me of the movie title "Dumb and Dumber".
Bill Yung thinks that he is the supreme ruler of his company. He started out with a Car Wash. Then a few Car Washes. Then a Motel 6. He owned each thing and he could do anything he wanted. This continued when he bought hotels. He was not letting anyone including the gaming commission tell him what to do and he did as he always did.....his way. He is very stubborn and very cheap. I loved my job, that's why I stayed. I could not have raised my family on my salary alone. I wish him well and hope that he learns from this. Sometimes you just have to spend a dollar or two and hire the experts to help you. He and Joe found out they can't run a casino their way. Someone finally said NO to him and meant it.