As day honoring workers nears, few here have much to celebrate

Sunday, Sept. 6, 2009 | 2 a.m.

Chris Morris

Labor rally

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Unions and labor coverage

Thousands of union construction workers gathered on a vacant, dirt lot in downtown Las Vegas last week to hear some of Southern Nevada’s most prominent Democratic leaders fete their accomplishments.

The event, dubbed a “Celebration of Nevada Workers,” was part political rally, part carnival — complete with hot dogs, shaved ice cones and amusement rides. But the high praise and free food were cold comfort for Las Vegas workers facing the worst Labor Day in state history.

Nevada ranks third in the nation in unemployment, with Clark County feeling the bulk of the pain. The jobless rate here is more than 13 percent. Two decades of explosive growth have slammed to a halt and the region is reeling.

According to the most recent estimates, the county lost 10,000 residents from July 2007 to July 2008. And if Florida, with its growth-dependent economy, is any indication, that figure will balloon. The Sunshine State shed 50,000 people over the past year.

The consensus among workers is clear: Las Vegas, as they put it, is “boomed out.”

Labor leaders are coping with the grim reality that Las Vegas — at least for the foreseeable future — is a much smaller place, its identity as a workers’ paradise diminished, if not destroyed.

“These are pretty trying times for anybody working for a living,” said Danny Thompson, executive-secretary treasurer of the Nevada AFL-CIO. “And it’s going to get worse.”

Steve Ross, head of the Southern Nevada Building and Construction Trades Council, acknowledged the slowing economy has caught workers off guard.

“Las Vegas is not like other cities. The boom has gone on so long, for so many years, that we’ve gotten very used to that,” he said. “We have been spoiled here.”

More than 25 percent of the region’s union construction workers are unemployed, Thompson said. Today, half of Reno construction workers are jobless, a mark he predicts Las Vegas will hit by year’s end.

Employment in Southern Nevada’s construction industry has dropped nearly 40 percent, from a high of 125,000 jobs in 2006 to 76,000 today. MGM Mirage’s CityCenter remains the sole bright spot on the Strip, as work on other megaresort projects has slowed or stopped.

The state’s leisure and hospitality industry has also taken a hit, shedding 22,700 jobs over the past year. Casino operators, burdened by heavy debt taken on in the boom years, have cuts costs by thinning their workforces.

To be sure, public works projects funded by the federal stimulus package and the potential for renewable energy development provide a glimmer of hope. But those jobs have been slow to materialize.

“It’s a slippery slope for the rest of the year,” Thompson said. “There just aren’t the types of jobs on the books to create new employment.”

The desperate scramble for work can be seen in the surge of CityCenter applications. MGM Mirage has received more than 150,000 resumes — for an estimated 12,000 jobs. That’s the equivalent of roughly 84 percent of the state’s unemployment roll. The casino giant says that 75 percent of those applicants come from outside the company.

Construction workers, in particular, see a dim future here.

Jennifer Todd, an ironworker steward at CityCenter, is supporting a family of five on her salary. Her husband, James Brunty, was laid off at Fontainebleau in October and hasn’t been able to find work since — here or elsewhere. The couple bought a house last year and are struggling to pay the mortgage.

“People are losing their houses,” Todd said. “They can’t pay their bills. And if they’re lucky enough to have a job, there’s daily worry about layoffs.”

Brunty said the sharp downturn in the industry presents a challenge to construction workers, who are nomadic, traveling from boom to boom. “You used to be able to go anywhere when things stopped,” he said. “Now there’s no work and we’re stranded.”

The sting is sharp for longtime residents and native Nevadans.

Brian Gomez worked as a heavy equipment operator on the Hard Rock Hotel expansion and was laid off in May 2008. He hasn’t been able to find regular work since and moved his family into his parents’ house after his savings ran out. Sitting under a canopy at last week’s rally, Gomez seemed resigned. He and his family are considering moving.

“We all knew the work would stop at some point,” he said.

Then there’s the wounded pride of tradesmen such as Edwin Manning, a plasterer who has worked Las Vegas construction for the past 27 years. He was laid off last month from a job at Caesars Palace’s high roller suites.

“We built this town, and it became something,” he said. “Now the pioneers are out of work.”

On the service side, the Culinary Union saw its first decline in membership in two decades, losing roughly 5,000 members to layoffs. Because of hour reductions, some members fell below the minimum requirement to maintain health insurance. The union responded by offering a basic coverage plan that allowed workers to make up the difference.

“More than 85 percent of our folks are still working,” said Culinary Secretary-Treasurer D. Taylor. “But there’s no sugarcoating it. It’s been a tough year.”

A bright spot: The union used its new labor-management housing fund to help 75 members purchase their first homes.

Although Taylor is bullish on gaming, he offered a cautionary note on the extent of the recovery: “I think the entire country has a whole different perspective on spending. People are watching their nickels and dimes.”

Labor leaders say the recession has brought Nevada’s reliance on the gaming and construction industries into sharp relief. The state’s failure to diversify the economy has left workers vulnerable, and they intend to spend their resources over the next year reducing that vulnerability.

Mission one: diversifying the state’s tax base.

The Nevada AFL-CIO is considering putting the idea of a gross-receipts business tax to voters by sponsoring a ballot initiative.

“You have a very small group of people paying all the bills,” Thompson said. “Until you fix that you’re going to have a lousy educational system and lousy public services. Somebody has to stand up and say enough is enough.”

Sun reporter Cydney Cappello contributed to this story.

Discussion: 20 comments so far…

By formervegas76

9/6/09 at 3:25 a.m.

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oh those union bashers will have their say here. let's all be ceo lackys. yes master, can i lick your boots master.
By mrjb

9/6/09 at 5:51 a.m.

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Global overpopulation (unlimited cheap labor) + Undefended boarders + A deep recession = demise of Unions
By Det__Munch

9/6/09 at 6:45 a.m.

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Finally an article that is telling it like it is union or not. maybe those gung ho "ra ra Vegas is great and why is everyone so negative" folks that are posting will read this and understand what is really going on. those 500 jobs at Hard Rock don't mean a thing when you look at the big picture. A drop in a very empty bucket.
By neiman1

9/6/09 at 7:15 a.m.

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How many people will be moving out after the City Center construction is finished? With 10,000 construction workers becoming newly unemployed many others will be effected. Tens of thousands in everything from restaurants and retail stores will find their hours cut more or their jobs eliminated.

If you don't have a long term job in the city, making house payments only to lose it later seems a waste. Many in construction have already stopped making their mortgages as they realize they are moving by years end.

Housing downturn number two is about to hit with a vengeance. You cannot live on hope or change. It all seems to have skipped Las Vegas.
By Det__Munch

9/6/09 at 7:54 a.m.

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neiman
True. its okay to have hope but that does not help since people cannot wait for things to change. and who knows when that will happen here. all these politicians talk a good game but no one is putting money where their mouth is.

that figure for people leaving from '08 until now has got to be high by now. I bet Vegas and the State surpasses those Florida numbers. More retirees in Florida and they're not going anywhere. The retirees movin ghere could help but unless they didn't lose all their retirmenet money inthe last year, their spending won't be as much as the county and state may hope for. the property taxes have to be taking a hit too.Why pay taxes on a house that lost 50% of its value?
By afveteran

9/6/09 at 8:43 a.m.

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Globalization is killing the standard union industry.
Rise of the public sector unions is killing standard unions.
Standard unions are killing themselves with the public and the smart industries who have seen them kill off the factory worker and the assembly line worker in the last 30 years.
Bye bye standard unions. You have 40 years of life left. You join the Edsel and the steel industry in that passage of time.
By stevem

9/6/09 at 9:05 a.m.

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you think it's bad now?

ha!

read between the lines on this article. FINALLY i think unions and politicians are getting the message.

vegas is doomed.

the recession is far from over. and even if it started turning around TODAY...it will be a long, long time before enough people feel comfortable enough to hop on a plane and drop a paycheck to see the fake eiffel tower to fill the rooms we have NOW...much less the rooms city center is going to dump onto the market.

then, as each little piece of city center gets completed, those workers are not going to be able to find new work.

period.

there isn't work for construction workers NOW, so where are all the NEWLY unemployed workers going to find work in vegas?

they won't.

they will be forced to leave vegas and that ripple effect is going to bury this town.

restaurants, grocery stores, coffee shops, the "roach coaches"...all will shut down.
By gotjobs

9/6/09 at 1:31 p.m.

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Unions have spent all there time and money backing Obama/Pelosi/Reid-care they forgot Joe Biden's three letter word, JOBS.
By bdover

9/6/09 at 1:37 p.m.

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I think as long as the casinos can pay people 8-10 bucks an hour, they will mope along. The Strip is quite unionized, and they may suffer a lot longer than our locals places. So we're in for tough times, but screw the Strip-they had no use for locals for years.

"Oh, you're a local? Your points expire in 28 days/" NY/NY.

"Oh you're a local? Put 500 points on this card, and then we'll give you a real one." Steve Wynn.

Where is Michigan, Steve? Uppa US.
By billykydd

9/6/09 at 6:49 p.m.

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Ah well Stevem, look on the bright side. Maybe the lousy drivers will go somewhere else where signals ain't part of their cars.
By VegasSmitty

9/6/09 at 7:35 p.m.

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Who's stupid enough to think construction would continue at breakneck speed forever? I guess only union monkeys. Maybe they need to take a close look in house and start paring out the illegals, regardless of senority.
By dipstick

9/7/09 at 4:21 a.m.

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forbes just came out w/ the top ten emptiest cities; vegas is number one. the idea of gambling is no longer exclusive to vegas,people. why waste hundreds to fly when it costs $10 round trip to gamble at the local casino? the mayor doesnt have a clue; he's more concerned getting his picture in the paper. rough times are here and its not looking better anytime soon. it may be a good time to turn off the tv and start thinking for your selves.
By melbedewy

9/7/09 at 5:23 a.m.

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Keep the borders wide open.
Re-elect Harry.
By fremmasmind

9/7/09 at 6:06 a.m.

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Along with the union jobs in construction, non-union construction jobs will be at a loss also. Screaming for our Government to helps citizens protect American jobs being taken by illegal immigrants has been very important these past few years, however our voices have fallen upon deaf ears. We as citizens are not only losing good american jobs, but are also losing a federal government voted into office to protect us.
Every time our government has called upon its citizens to fight wars that sometimes don't even make any sense, they recieve an overwhelming response by unselfish patriots. Why then when our countries' citizens call upon our government when we are in dire need, we get no response?
By Det__Munch

9/7/09 at 7:37 a.m.

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dipstick
I agree with you. if you want to gamble most people are just within a 2 hr drive anywhere in the country of a casino and not all are Indian ones but Vegas-style casinos. it wasn't always like that; those casinos alwys were the last to get the recent machines but now these casinos have the same mac hiens as stuff we have here. instead of paying $2000 for a 2 night jaunt to Vegas, the $50 for gas is more appealing. sometimes you can even get comped rooms and food at these local places, too.
By Det__Munch

9/7/09 at 7:45 a.m.

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fremmasmind
our gov't is too chicken to stop the flow of illegals and the jobs they take away from legal citizens. Don't know what they are afraid of since those people can't vote. maybe it's time for We The People to kick these people out of office and that includes the newest resident of the White House until these politicians start LISTENING to the ones who put them in office.

And speaking of fighting wars that make no sense, it is disgusting how the returning servicvepeople are treated once they get home by the same gov't that put them in harms'way in the first place. I wonder how many of these soldiers lost their jobs while they were serving our country? I know an employer can't fire you for doing military duty, but i'm sure some employers worked around that little important bit of informatioon and that soldier was canned along with others or soon after returning, got his/her pink slip.
By aBadReid

9/7/09 at 9:15 a.m.

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We can start a turn for a brighter future by first getting the Senate Majority Leader out of office.

Not only has he contributed to the demise of our nation, but he has done NOTHING for our state.

See the facts at http://aBadReid.com.

Start the real CHANGE that is needed. Be proactive. Get educated. Vote Reid out.

Bad Reid
Bad Senator
By getalife

9/7/09 at 10:09 a.m.

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I was going in to a bar the other day when I noticed about a dozen union "bugs" on the door and a sticker of the "chosen" one. I chose another bar.

Unions are nothing but the spawn of greedy union bosses. If you can still think, ask yourself; Where do all my dues go? Why do I vote lock-step with somebody elses wishes? Why am picketing things I really know nothing about? Why did I force my last employer into bankruptcy?

I know "live better, vote union".

ROFLMAO
By geenab65

9/7/09 at 5:41 p.m.

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SteveM,

Since you see such devastation, chaos and plain old abandonment, why do you continue to live/work here? I'm really curious.
By larry5

9/7/09 at 7:26 p.m.

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This is my favorite line: "The Nevada AFL-CIO is considering putting the idea of a gross-receipts business tax to voters..."

The article is all about the unprecedented unemployment and "The desperate scramble for work".

What's the union's solution? Higher taxes on business. Is it so hard to see that the only way to renew our prosperity is by promoting and encouraging business? America is successful only when individuals and business are successful. There is no alternative.