If Atlantic City casinos were not already caught in a perfect economic storm, the deteriorating labor situation will soon make it so. The New Jersey gambling mecca is suffering monthly double-digit losses on earnings, as the recession and competition have drained many customers, and the labor issue may drive even more operators toward bankruptcy.The contract for bartenders, waitresses, and hotel workers expires today, leaving 15,000 emplyees without a labor deal. Both union leaders and casino officials say a new contract will quickly be arranged, but attempts to produce a working deal between the casinos and the United Auto Workers, representing dealers at certain resorts, has led to impasse for years.
Services will continue for now. The demands of either side are not known, but it is certain the casinos will look to prevent any cost increases while the gaming palaces are still in free-fall, economically.
Trump Entertainment has gone into bankruptcy already, carrying three of the eleven Jersey casinos with it, although day-to-day operations have continued. The Tropicana was run by a trustee for over a year until a buyer could be found for pennies on the dollar. And Resorts Atlantic City, the town's original casino, could soon be shuttered if lenders do not receive regulatory approval to replace owners.
So, both sides carefully eye the need to resolve the labor issue while realizing the precarious position they all are in. One wrong move, and it's a long way down.
Published on September 15, 2009 by JulieWong
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