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No contract, but dealers benefit from going union
Monday, March 9, 2009 | 2 a.m.
Sun Archives
- Tip-sharing cloud forming over Encore, Wynn critics say (8-7-2008)
- For Wynn dealers, deal slow to come (6-24-2008)
- Group opposing Wynn tip sharing plan to protest Culinary role (4-20-2008)
- Union's plan: Win dealer's gratitude, then their votes (3-1-2008)
- No win-win for Wynn, former dealer (2-27-2008)
- The Card Dealer (11-19-2007)
- Dealers sour on Caesars (11-1-2007)
- Under the radar, Caesars dealers push for union (10-11-2007)
- Duo bets on long shot (12-3-2006)
Organized casino dealers at Wynn Las Vegas and Caesars Palace still lack union contracts after more than a year of bargaining.
And though neither group appears any closer to a deal, with talks stalled on big-ticket items such as “just cause” for firing and tip sharing, labor leaders say members are reaping the benefits of unionization. In particular, federal labor law prevents employers from unilaterally changing wages, benefits and working conditions during bargaining.
So while dealers elsewhere along the Strip have seen employer contributions to their 401(k) plans cut, the more than 1,000 dealers at Wynn and Caesars continue to enjoy the benefit, dodging, at least for the moment, one effect of the recession. As one labor consultant put it: “They’ve locked themselves into conditions of a better time.”
Union officials say that protection has solidified support among the rank and file and boosted worker morale as negotiations drag on.
“The dealers really do have a sense of how critical it was to unionize,” said Mark Richard, a labor lawyer and chief negotiator for the Transport Workers Union in the Caesars Palace talks. “It becomes more the right decision every day.”
He added: “Everybody is being very careful, watching all actions by the employer. If they cross the line, we’re going to be right there.”
For the union, it’s important to maintain its relevancy. Last year, when MGM Mirage awarded pay raises to its dealers companywide, the Transport Workers — fresh off victories at Wynn and Caesars — took credit. The company said the raises were unrelated to the union’s organizing efforts.
Typically, the longer the contract talks, the weaker the member morale. And, under labor law, workers can petition the National Labor Relations Board for a decertification election after a year of bargaining.
Union officials say they heard rumblings of such a move at Wynn last year but nothing surfaced. An overwhelming majority of the resort’s dealers voted for the union in 2007, after owner Steve Wynn instituted a controversial tip-sharing policy.
The Transport Workers Union says the talks show the need for the Employee Free Choice Act, federal legislation that, besides making it easier for workers to organize, would impose binding arbitration if both sides cannot agree on a contract in 120 days. Kate Bronfenbrenner, a labor expert at Cornell University, has found that a third of unions that win representation elections fail to achieve a first contract.
The U.S. Chamber of Commerce, which is leading the fight against the legislation, says the arbitration provision would represent an “unprecedented intrusion into the private sector by the government.” Federal arbitrators with little to no knowledge of a given industry would impose terms on employers, taking away their ability to react to market conditions, the group argues.
The union feels pressure to win a contract. After winning elections at Wynn and Caesars two years ago, it lost a vote last year at the Rio and no properties have organized since. Officials are seeking to build a strong local here, saying they’ve learned from past failures. Local officer elections are set for next month.
Among all casino employees, dealers historically have been the most reluctant to organize.
In 2001 the union tried to organize dealers at 11 casinos. It won elections at three properties, but ended up with just one signed contract, widely considered ineffectual, at the New Frontier, which was imploded in 2007.
The bargaining is no less tough this time around. Joseph Carbon, director of the union’s fledgling gaming division, said that though some progress has been made, both sides are dug in on just cause and tip sharing. Management at both properties has proposed eliminating employer contributions to dealers’ 401(k) plans, he said.
“We understand there’s some give and take and that these are hard economic times, but they don’t even want to maintain the status quo,” Carbon said of management negotiators. “Dealers realize now more than ever they need union representation.”
Wynn and Caesars representatives could not be reached for comment Sunday. In the past, the casinos have said they are committed to good faith bargaining but declined to discuss negotiations.
Although MGM Mirage has not seen any of its dealers organize, spokesman Alan Feldman articulated to the Sun last year casino management’s long-held belief that dealers should remain nonunion: “Management prizes a direct relationship with employees, and dealers have a very special place in that system. If you start putting a third party in the midst of that, especially a third party that has no understanding of this industry, it interferes with that relationship.”
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unionize, raise the pay and watch the layoffs. Make Las Vegas as irrelevant as Detroit. Who needs a job when we have union solidarity?
Right on neiman1. I moved here from Detroit where I saw the unions severely impair the ability of U.S. carmakers to compete with non-union rivals.
Lets not turn Las Vegas into the next Detroit.
the union broke Detroit and they will take down Las Vegas too, I hope you do not let them. the dealers will be proud with no jobs but still having to pay dues.
Look at the auto industry it seems like you would figure it out.
Let me get this straight..the dealers at Wynn were getting 100k a year to flip cards and count to 21..now you're only making 80k ..I really feel sorry for you..sheesh unions had their time when we needed them..but now with all the labor laws we have...we dont need them at all.
neiman 1, Once again you are blowing off about things you know nothing about, but what is new with that?
Do you suppose that the Detriot failed to make quality autos during the last fifty years thus leaving the market to Japan, Korea and don't forget Europe. You don't know these things because you have not been alive long enough to wittness them. I have said it before and I will say it again you still live with your parents,don't work and insist on making a fool of yourself with your postings.
Unless you have been in a coma you would know that nearly every casino is near bankrupt ,laid off workers by the THOUSANDS,quit giving raises, quit contributing to 401 K's, and shut down shows and restraunts. All of this thanks to Bush and his insistance on the strong economy that was non existent and his failed lying policies.
If you read the article the two casinos that have not stopped contributing to 401 K's are union. Now for a second do you think the other casino workers wish they were in the same position? Think before you post.
You know nothing of unions and the contributions they have made to every working American. Little minds like your should educate yourselfs before posting.
I'll bet nightmare and mac57 have never set foot in an auto plant. But they sure know the answers to everything. If they did they would realize Detriot failed to make quality autos for fifty years now and that is the real problem along with Bush and his stupidity.
The Sun once again shows its left wing bias. No comments from the other side on the negotiations. No explanation about why the companies have not cut 401K programs. Caesars is the ONLY casino where dealers have been intimidated to sign union cards. Yet Harrah's has not cut 401K plans in any of their non-union casinos either? What does that mean!?
The Sun is merely a worthless mouthpiece for unions. That's why they have to be an afterthought to the RJ. Unions destroyed the Sun and now the Sun wants them to destroy casinos.
Won't happen because most dealers are intelligent enough to know that unions kill.
dave 202.Harrahs is cutting jobs,raises,and 401 K's contributions are going away. They are the biggest casino operator and are going to file for bankruptcy. Do your homework before you post these ridiculous rants. Harrahs owns junk properties and is a low class operator. Loveman and Jones ruined this once fine company started by a great employeer and owner.Meanwhile the only thing Loveman cares about is the Boston Celtics shares he owns and Jones only worry is her ex husbands next alimony check.
The dealers at Wynn and Caesars are not being denied benefits so they must not think unions kill. Stupidity kills.The intelligent dealers signed union cards and protected themselves. The ignorant believed lying casino operators and have no recourse now. I'll bet you are like neiman1, don't work and have not got any idea what you are talking about.
It is kind of funny when the Sun runs an article that does not set right with the ignorant self serving right wing base, the paper is now a liberal rag, when in fact the right wing neo con nazi's like to bully and intimidate as they pound their chest. They have no idea what consevative values are. They are Rush,Oreilly and Fox News idiots who are perprogrammed to spew stupidity. America once a country of thinkers is now a country of perprogrammed nit wits. Have you heard of the constitution? Does it aply to everyone or just nazi's fools who don't contribute anything to society?
Any inteligent person would know the Sun reported the facts. That is their job Dave 202.
My only question is if the casino's (and other businesses) are doing right by their employees what is there to fear if they're unionized. It seems suspicious, to say the least, when Companies fight so diligently to keep the union out - other than the issue of pay rate I can't imagine why anyone who is doing everything above board, honest and legit, would fear a union. It's only when companies KNOW they're being less than honorable and noble to their employees do they have to fear the union coming in and calling them out every time they try to jack one of their employees around.
You are right, azsk8fan. That's why Stations is so adamantly opposed to the unions. Station knows they pay below scale. This has been brought up to upper management and the comment was 'we weren't aware of that.' BULL! How can they state they pay competitive wages if they are not aware of what the competition pays?
No, pacman720. You didn't get the Wynn dealer's salary straight. Mr. Steve Wynn exaggerated the amount in order to get public opinion on his side. I don't work for Steve Wynn, but I have many friends who do. In order to come close to the salary he mentioned they would have had to work six and seven days a week and 12-hour shifts over New Years Eve and Chinese New Year. The people that I know never made 100 grand in one year.
The issue with having union's representation for your employees is it leads to inflexible work rules and entitlement. As a former employee of a GM subsidiary, I saw first hand what the unions did to the assembly plants. Our subsidiary would go into the plants to plan upgrades of the communication systems during maintenance shut downs. It was a sorry state of affairs that they would have hundreds of workers literally doing nothing. I ask one of the guys working on the line at the GM plant in Atlanta what he thought about the situation. He liked it before the unions broken everything down to just putting the lugg nuts on, or just mounting the tire, or just sticking the mirror on the windshield. And if they didn't need you for this, then they would put you in a job bank at near full pay. The money is just one of the items that employers have to address with unions, bigger issues are the flexibility to reconfigure the work force and work place to meet the current needs of the business. After all, if the company does not make money, then everyone goes home. Regardless of what the top management is doing, or how they are acting or how much they get in bonuses, you are still working for a living. Unless you put up the money to fund, run and profit from the business or someone who does hires you to run it for them, you are still just hired help. As an employee you want to be treated with respect and be treated fairly, but in the end you are just selling your time.