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StumbleCulinary Union statement critical of Station Casinos
Published Thursday, Nov. 19, 2009 | 3:05 p.m.
Updated Thursday, Nov. 19, 2009 | 4:45 p.m.
The Culinary Union issued a statement Thursday critical of Station Casinos Inc. and called on creditors in its bankruptcy case to demand that Station insiders make a significant equity investment in the company.
The Culinary, which doesn't represent Station workers, charged that the company could have avoided bankruptcy earlier this year "if not for the substantial debt it took on largely to enrich a small group of company insiders.''
The union charged "this debt enabled insiders to extract over $1 billion from the company in recent years and that these insiders, not the global recession, drove the company into bankruptcy.''
Station Casinos responded to the report, saying the Culinary Union's statement is "the same corporate harassment by the Culinary Union leadership that has been going on for years due to their frustration over not being able to persuade our employees to join the union.
"You would think that in these difficult economic times, when thousands of union members have lost their jobs, that the Culinary Union leadership would have something more productive to do with their members' due than to create and distribute this silly report concerning a bankruptcy proceeding in which they have absolutely no involvement," Station said in a statement.
In its bankruptcy case, the Las Vegas company has said the 2007 buyout deal was not successful due to the recession -- not the terms of the $5.7 billion transaction in which Station was taken private by members of the Fertitta family and investment company Colony Capital of Los Angeles.
The union for years has been interested in organizing Station workers and, with its bankruptcy, appears to be pursuing a strategy of putting the company on the defensive by highlighting its financial situation.
"Station Casinos is a uniquely Las Vegas company that owes it success to Las Vegas locals like our members," D. Taylor, Culinary Workers Union Local 226 secretary-treasurer, said in a statement. "The company has a special obligation to our community. Its owner-managers have a responsibility not just to their Wall Street lenders and investors, but to their employees, customers, suppliers and vendors right here in this community.
"The livelihoods of a lot of people and their families are closely tied to this company’s financial well-being. Clearly, the owner-managers and other insiders were more interested in extracting wealth from the company for themselves than ensuring its and its employees’ future. Now it’s time for them to give back," the statement said.
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Boy the Fertitta boys really got themselves in deap on this deal. They thought they would just push this bankruptcy through and still walk away with all that money but they were wrong. I respect the creditors who are going after them. They need to give the money back. Plain and simple.
Yeah just what Station nees right now...to become a Union shop...Then they'll be out of business in less than 3 months...DONT DO IT STATION!
absolutely absurd. Just becasue the deal went bad after they sold does not mean it's their fault. Otherwise every company that has ever sold and then went belly up means they could sue? Wrong. Never happen. Get a clue
to ridiculousness, you need to get a clue. There is the possibility that there was fraud involved if the going private deal made the company insolvent. In addition the structuring of the subsidiary Prop Co is in question.
VC you must be in a Union like the rest of the financially illiterate robots. Wake up, capitalism has worked for 233 years my friend
D. Taylor is an illiterate piece of garbage. Don't ever tip anyone in a casino who is a union member. Stiff the goons.
Culinary union should mind their own business. This is a private company, butt out.
A number of pro union groups come to Vegas for conventions..they are not going to hang at a non-union place. If Station's went Union there might be some more business from meetings that want budget destination...
how has being non-union helped the Stations???
A number of unions have financed a few projects in the area...
since when has someone tipped a stove-cleaner? most of the dealers are non-union...go back to the Mark Levine show now...he is going to rant like an old lady..
or maybe the "bug killer" tickles your fancy...he is an expert lawyer, computer genius, nutritionist and military expert..who can't sleep at night
Sounds like a "bust out" scam to me..the US Attorney ought to be looking at this.
For years Stations used to bad-mouth the Culinary Union and claimed that if Station properties were unionized they would go BK. Well, well, well...Look at all the union houses that are still solvent! The Fertittas really showed the world what disgraceful, greedy a--holes they are, didn't they? There's nothing bad that can happen to that family that isn't deserved!!!
If you really want to hear Culinary squeal like a stuck pig, demand e-verify be enforced retroactively on every one of the union's members.
There is no doubt that there is much to question about Stations, but if this isn't the pot calling the kettle black I don't know what is.
Fertitta boyz sucked it dry there is nothing left just like all the other doomed LBO's and private equity buyouts, the rich keeep getting richer, the rest of us can pound sand! Avoid any Station Casino property like the plague, take your business elsewhere unless you go to one of their lovely casinos to take a s&*t...
Take a comp if you are lucky enough to get one at the Stations, play the machine out, cash out, get out, don't tip, don't look back...Watch their pirate ship sink and laugh at the Sicilian mob boys...And laugh at Crown and his Neverland ranch as he dumps on Station turd and Hilton mess.
I am not pro-union by any means but when the Culinary Union makes these claims, there is probably something to it. I am highly suspicious of Stations because they are so loathe to even consider the buyout from Boyd. All of us here own things, ie. home, car, boat, vacations homes, timeshares, etc and all of us have an income to sustain the price of these goods. If our income went down, wouldn't we try to sell off some of our possessions in order to pay for the other possessions that we could afford? Well, of course we would. But not Stations, they want to keep all their possessions and they go to the Bankruptcy court to try to get a lower rate on paying their debts, for instance maybe 40 cents on the dollar. It just doesn't pass the smell test...and God only knows what their private dealings were when they took the company private. Someone sure as hell needs to look into the details of that, for the creditors sake.
I have to agree with Station's statement on this one!