Picketers taunted Trump Taj Mahal gamblers as they entered the casino.
Around 150 workers picketed the Trump Taj Mahal casino on the Boardwalk in Atlantic City on Sunday. The rally occurred on the third day of the workers strike, which is happening on the busiest weekend of the year for Atlantic City casinos. The Trump Taj Mahal was opened in 1990 by billionaire Donald Trump. The casino is now owned by Carl Icahn, a billionaire who built his fortune investing in struggling companies like the Trump Taj Mahal.
Gamblers crossed the picket line to enter the casino, which is still in operation. As the customers entered the gaming space, the picketers taunted them. Workers have held rallies periodically for months, protesting the loss of their benefits in a bankruptcy court, instead of the negotiating table.
The strike involves 1,000 union members of the Local 54 of Unite-HERE, which represents the housekeepers, cooks, servers, and bellhops in the Trump Taj Mahal. In the days before the strike, workers at four other Atlantic City casinos came to an agreement with their workers.
Local 54’s Negotiating Points
The Local 54 are striking to gain reinstatement of their health and pension benefits, which the Trump Taj Mahal’s owner, Carl Icahn, took away from the workers in an October 2014 court case. The ruling came during bankruptcy proceedings for the Trump Taj Mahal, at a time when Carl Icahn said he would invest $100 million in the struggling casino. Since he gained ownership of the AC casino, Mr. Icahn has backed-off from the $100 million investment pledge.
The union member salary averages $11.80 an hour. That wage represents an 80-cent raise over the past 12 years. During labor negotiations over those 12 years, the workers traded away salary increases in order to retain their health and pension benefits. Carl Icahn claims he cannot run a profit, if he is required to pay for benefits. The workers are outraged that the new ownership took away their negotiated benefits in a judge’s ruling.
Parity with Other Casino Workers
Bob McDevitt, the Local 54’s chairman, pointed out that workers at the other 7 casinos have the same benefits, so the Taj Mahal’s workers “are making a bold statement” with their strike. No one has any idea how long the strike might last, as negotiations appear to have stalled altogether.
The Local 54’s spokesman pointed out that Carl Icahn’s other casino, Tropicana, came to a deal with their workers on June 1.
McDevitt said of the Taj’s workers, “They’re not going to be second-class workers. There’s no reason they should (be treated) as if they’re a third world country.”
Ownership of the AC Casinos
The five casinos involved in the recent negotiations are owned by two groups. Three of the casinos (Caesars, Bally’s, Harrah’s) are owned by a private equity group, Apollo Group, which owns Caesars Entertainment. The other two casinos (Tropicana, Taj Mahal) are owned by Carl Icahn’s private equity firm, Icahn Enterprises.
Bob McDevitt said Carl Icahn refuses to restore benefits to the workers in this single casino. The union leader said the billionaire’s last move was a “lowball offer“, which included “bare-bones” health, pension, and other benefits. Severence pay or paid meal breaks were not offered. McDevitt said the latest offer restored the housekeepers’ pre-bankruptcy workload, which is less than the heavier workload required during the bankrutpcy process.
Carl Icahn’s Version of Events
For his part, Carl Icahn has pointed out that he has spent $86 million to keep the Trump Taj Mahal open. A spokesman for the casino previously said the Taj’s workers seem “hell-bent on trying to close this property“. From Carl Icahn’s perspective, it makes no sense to give workers at a struggling casino the same benefits that employees at a profitable casino get.
With the strike in the third day, no new talks are planned. The Fourth of July weekend is a time when crowds come to the destination resort city. With the 4th on Monday this year, many people came to Atlantic City looking for a 4-day weekend. Those visitors likely stayed at other hotels on the Boardwalk, and most probably gambled elsewhere. The strike could not have come at a worse time from an ownership perspective.
Trump Taj Mahal is not taking reservations for hotel rooms over the next week. No rooms were filled over the weekend.
