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July 4, 2009

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Jeff Simpson on the latest reason Nevada should yank the Trop owner’s license

Sun, Jan 27, 2008 (2 a.m.)

You have to pity the workers at the Tropicana.

Already faced with meat-ax cuts to staff and operational budgets that have destroyed morale and come close to turning the property into a dump, workers are now facing even more indignities at the hands of the Kentucky-based half-wits who run the Trop.

Recently I got a call from a Tropicana worker telling me that when Jan. 14 paychecks were handed out, folks were told not to cash them for two days.

I called up the Culinary Union, still embroiled in contract negotiations with the Trop’s owners, to see if they could line me up with a few workers who could confirm the paycheck tip.

Last week I met with three Tropicana workers as well as Culinary Secretary-Treasurer D. Taylor at the union’s offices.

Not only did the workers confirm that they and their fellow Tropicana employees were told not to cash their paychecks for two days, but they told me there have been more than 200 cases of workers being underpaid on their paychecks in recent months.

“This is clearly not accidental, and a lot of workers are getting screwed,” Taylor said, noting that the Culinary is examining its legal options. “This is a smaller property, yet the number of improper payments are far more than at much bigger hotels.”

Workers said the property’s payroll department blames many of the errors on the Kentucky headquarters of owner Columbia Sussex Corp., but payroll workers seem reluctant to fix the mistakes because they don’t want to anger their corporate bosses.

“They tell us to Google the company’s name and call them ourselves if we want to pursue it,” one worker said.

Given the payroll problems, the property’s slashing Culinary positions from about 1,100 to 700 and the Tropicana’s insulting contract offer to the union, which calls for the workers to abandon their prized — and hard-won — health care benefits and guaranteed 40-hour workweek, Taylor’s irritation with Tropicana owners is understandable.

When I noted that the Tropicana owners were the worst kind of executives — incompetent and arrogant, Taylor agreed.

“They’re like George W. Bush,” he said. “And the Tropicana is like Iraq.”

That’s tough criticism from Taylor, but he’s got some anger to spare for Nevada gaming regulators.

Despite Columbia Sussex’s recently being stripped of the Tropicana Atlantic City’s gaming license, and the company’s earlier decision to abandon Tropicana’s former sister property in Missouri because Show Me State regulators made it clear Columbia Sussex wouldn’t get licensed, Nevada regulators have not taken action against the company. New Jersey regulators said Columbia Sussex executives defied the regulatory process and lacked good character, honesty and integrity.

About a month ago the union sent the state Gaming Control Board a report detailing what Taylor said was a range of serious ethical lapses by Columbia Sussex that clearly justify a regulatory response, but the board has yet to respond, he said.

“When a company loses its license for serious reasons and Nevada thinks it’s OK, something’s wrong,” he said.

“But they’re monitoring it,” the Culinary official said several times about Nevada regulators, sarcasm dripping from every word.

I understand Taylor’s frustration, and agree with him.

Nevada regulators should protect the image of the state and the industry and yank the gaming license of the dishonest and poorly run company.

Discussion: 6 comments so far…

  1. Compared to what happened at the River Palms in Laughlin on that payday, the LV Trop didn't have it so bad. Kind of curious why the LV Trop simply didn't ask for employees to cash the checks at the Casino Cage. Makes you wonder if they are meeting the minimum bankroll requirements.

    Down in Laughlin, the Direct Deposit of the paychecks wasn't made at all for River Palms. While they did manage (15 or so hours after they were due) to issue paper checks to the effected employees, "Corporate" told them that they (Columbia Sussex) would not be responsible for any fees or charges levied against the employee by the bank for any debits denied due to their failure to directly deposit the checks.

    Don't even get me started on the debacle that is their attempt at converting the entire company to a single insurance plan - one that's more expensive and has been an (unfunny) comedy of errors. From telling employees that deductions will be made retroactively, but now knowing the amount of deduction, to having doctors tell employees that they have no insurance, despite being assured by the company that they do.

    Are the State of Nevada Regulators looking to make themselves paper tigers? Is their fall from the envy of the Gaming Regulation world to the laughing-stock complete? I suppose the GCB/NGC's actions over the next few months will tell the tale.

  2. THE COMPANY HAS HAD SIMILAR PROBLEMS WITH WRONG PAYCHECKS AND INSURANCE CLAIM PROBLEMS AT IT'S LOUISIANA PROPERTIES. IT JUST FINISHED PROJECTS IN ITS MISSISSIPPI PROPERTIES THAT WERE SO ILL PLANED THAT THE LENTH AND COST OF THE PROJECTS WERE ASTRONOMICAL.

  3. Unreal- Columbia Sussex should be banned from Nevada, period! when will the NGC/GCB wake up and smell the stench????

  4. So, the plot thickens. Now the reports of financial irresponsibility by Columbia Sussex spread from Las Vegas to Laughlin, it is now past time for license revue. The inability of an employer to pay their employee's and issue such selfish self serving response to questions clearly shows the corporate structure of this company is NOT good for Nevada. It is time to pull the gaming license, or will they wait until Columbia Sussex can not pay off a jackpot?

  5. My husband works at the Columbia Sussex property in Indiana, and it's apparently on it's way to losing it's Indiana Gaming License. The local mayor has been actively campaigning against CS since long before NJ revoked the license.

    I would think that NGC would know what to do....

  6. W2 issues abound. Tipped employees had to have their W2 re-issued - of course the company took no responsibility. 401k deductions taken from people who haven't even signed up for it - late deposits for those that have. This company doesn't need a reporter that repeats union talking points - it needs a reporter that's willing (and able) to conduct some serious investigative reporting. Why (exactly) did Missouri decline to license them? Read the Indiana licensing transcripts - you can clearly see that micro-manager Bill Yung lied to them too about Louisiana. Yung knows to the exact number how many people are employed on his properties. He knew the answer to the minimum staffing question, he simply lied and the board never followed up on the question.

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