If Atlantic City casinos weren't already caught in an excellent economic storm, the deteriorating labor situation will soon make it so. The brand new Jersey gambling mecca is suffering monthly double-digit losses on earnings, because the recession and competition have drained many customers, and the labor issue may drive much more operators toward bankruptcy.The contract for bartenders, waitresses, and hotel workers expires today, leaving 15,000 emplyees with no labor deal. Both union leaders and casino officials say a brand new contract will quickly be arranged, but attempts to supply a working deal between the casinos and the United Auto Workers, representing dealers at certain resorts, has resulted in impasse for years.
Services will continue for now. The demands of both sides aren't known, but it surely is sure the casinos will look to forestall any cost increases while the gaming palaces are still in free-fall, economically.
Trump Entertainment has gone into chapter 11 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 may well be found for pennies at the dollar. And Resorts Atlantic City, the town's original casino, could soon be shuttered if lenders don't receive regulatory approval to exchange owners.
So, all sides carefully eye the necessity to resolve the labor issue while realizing the precarious position all of them are in a single. wrong move, and it is a good distance down.
Published on September 15, 2009 by JulieWong
Read More... [Source: Atlantic City Casino News]
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