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99 percent vote to authorize strike

8,000 union members back negotiators







Keven Purvis had 85,000 reasons to support authorizing about 10,000 Las Vegas casino and laundry workers to go on strike if they can't come to terms on a new employment contract.

Purvis, 43, makes about $12 an hour broiling steaks and chicken at the Fremont downtown, a job he just returned to following a hip replacement operation.


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  • "I'm a family man. I'm married and have two kids. My health insurance is a big concern," Purvis said. "It was an $85,000 operation; my health insurance covered just about all of it."

    He credited the strength of Culinary Local 226 and Bartenders Local 165 with securing good health benefits and living wages for cooks, bellhops, maids and other hotel and casino workers in Las Vegas.

    On Wednesday, about 99 percent of the 8,000 union members who voted did so to authorize a strike or other labor action if they can't negotiate new contracts with 16 employers, including most casinos in downtown Las Vegas, the Las Vegas Hilton off-Strip and Tropicana on the Strip.

    The vote won't move workers from the job to the picket line. But it does give union bargaining committees at each unsettled property the authority to call for a strike if they think negotiations are at a stalemate.

    The vote was the union's second display of its bargaining strength in two weeks. The first was the announcement Sept. 4 of an $80 million strike fund to pay workers if they walk off the job.

    A negotiator for several downtown casinos said he thinks management and the union will strike deals and avert a strike.

    But management at the Tropicana told employees in a memo the decision to hold a strike vote "so early in the proceedings is very disappointing."

    The memo asked workers to consider a deal that allows for more part-time jobs and subcontracting of work.

    "When you think about the changing demands and tastes of our customers, this kind of flexibility is just good business," the memo stated. "In addition, with part-time staffing capability, we can avert large layoffs in the event of a tourism-diminishing event like 9/11."

    Gregory Kamer of the law firm Kamer Zucker Abbott represents seven downtown casinos in the negotiations. Kamer said the casinos are eager to strike a deal, so long as the costs don't threaten the viability of struggling downtown properties.

    "We want to get a contract at the earliest possible date," Kamer said.

    His clients include the Golden Nugget, considered the most successful downtown casino, along with the Plaza, Western and Las Vegas Club, which have been in decline during the last five years while the downtown gambling win shrunk from about $657 million in 2002 to $630 million in 2006.

    "If they are profitable, they are marginally profitable," Kamer said. "Even the union recognizes that."

    The disparate economic conditions at various casinos in Las Vegas color the negotiations.

    The union has already settled contracts that include 3.7 percent raises for about 45,000 workers at Harrah's and MGM Mirage, companies that own more than a dozen resorts on the Strip.

    More recently, operators of the Sahara, Stratosphere and Riviera have come to agreement with the union.

    Keith Schwer, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, said downtown casinos might be more vulnerable during a strike than their Strip counterparts.

    "If they are relatively weak, they have less resources to hold off a business downturn," Schwer said. "If you are calling a strike from the labor side, that is exactly who you want to strike against. You don't want to strike against those deep pockets."

    Assessing the financial positions of the union in relation to the casinos is difficult, though, because many of the companies involved are privately run, meaning they don't disclose revenue to the public.

    Schwer said just because downtown properties like the El Cortez and Four Queens have invested tens of millions of dollars in upgrades in recent years doesn't mean they can afford large labor contracts.

    "It may well be they were able to borrow money for those investments. You usually don't borrow capital to pay workers," he said.

    It is also difficult to gauge whether contract provisions that would keep the labor deals in place in the event of ownership changes or property redevelopment would be overly burdensome.

    Schwer said the burden of such provisions would vary depending on the health of the property.

    "If you were already making money, it is not going to make any difference," Schwer said. "If you were losing money and trying to bail out, it probably would be a hindrance."

    Job security in the event of an ownership change is important to workers, especially downtown where declining gambling revenue and rising property values are prompting redevelopment speculation.

    At least six of the 11 downtown properties without a new labor contract have changed hands since 2004.

    Adalaid Nelson, 63, said job security in the event of an ownership change at the Western, where she works as a cashier, is important.

    Nelson said she makes almost $14 an hour to support her family, which includes her retired husband and six adult children who are attending college in the Philippines. Four are studying to be nurses, and two are in engineering school.

    Losing her job at the Western could mean trouble paying for her kids' education.

    "We don't have government aid, student loans," Nelson said of the Philippines, which she left before taking the job at the Western in 1995, her first job in America. "We have to pay it in cash."

    The strike authorization vote took place in two shifts at Cashman Center.

    Union members from the casinos that haven't settled arrived by car, bus and on foot to vote and participate in the pep rally-like atmosphere.

    Roosevelt Nibblett, 53, a bellman at the Plaza, said he supports the right to strike but hopes negotiators can avert it.

    "Most people who work at the hotel don't have a big savings account. They live from paycheck to paycheck," said Nibblett, a union member since 1971. "No one wants to go out on the picket line."

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    oldlawdawg wrote on September 13, 2007 04:26 PM: Reporter Benjamin Spillman utilized the first several paragraphs of his article about 99% of union workers authorizing a strike with the "story" of one hotel employee,who earns $12/hour or approximately $25,000/year based on a 40 hr. week at 52 weeks flipping chicken, and loves the benefits in his current union contract that covered almost all of an $85,000 surgery,and assured his job was waiting once he recovered. While reporter Spillman prefaces this story by stating that this employee has 85,000 reasons to vote for strike authorization (i.e.,the $85,000 paid for his surgery),there is absolutely no indication that employee voted to authorize a strike,or that he had any reason to do so given that his current contract is so good as artfully demonstrated by Spillman, who made sure that salary, job duties, return to work ability and high dollar medical coverage, were all woven into those first small paragraphs that include an atribution to the employee for stating the he credits his union for securing such good benefits, but with no reporting whatsoever of that employee's actual opinion of strike authorization or how he voted -- an opinion Spillman simply suggests on his own as if was the employee's actual opinion when, in fact, that same employee who, after having been off work for health reasons, is so happy that his benefits as secured by the union to date are so good that he may not wish to return to less than full salary in order to strike when he is already happy with the benefits he has. He may just as easily have 85,000 resons NOT to authorize a strike when his salary and benefits are already good (about $25,000 isn't bad for chicken-flipping) and have been improving elsewhere without strikes,and the union understands Downtown's unique difficulties. Blatantly biased reporting.


    David R Huntington wrote on September 13, 2007 02:51 PM: But management at the Tropicana, in a memo, asked workers to consider a deal that allows for more part-time jobs and subcontracting of work.

    Translation....casinos do not want to pay benefits to employees. Shame on the casinos! Upper managment is making millions in bonuses and the casinos are looking for ways to 'cheat' their employees out of what they earned and deserve, let alone necessaties of life (health insurance and vacation time.)


    cas127 wrote on September 13, 2007 02:21 PM: Hmmm, with the housing bust gutting the 50% of the LV market that comes from California (no more home loan refi ATM), it is going to be interesting to see how this plays out.

    The LBO firms that have bought into LV and just agreed to multi-year labor contracts may have just made a big mistake.


    Jeffery West wrote on September 13, 2007 12:34 PM: Let's start here. The hotel workers in Las Vegas do a great job and are the heart and soul of the Vegas gaming enterprise. Without their dedication to superior service, millions of Americans like myself and folks from all over the world wouldn't come back again and again. Thanks guys for all You do!!!!

    Vegas has some great business leaders too and a business has to be profitable to continue operations. All sides should be reasonable not to harm a great job creator and business model.

    Let's all hope that the cooperation of excellence we all see every day when we visit Las Vegas will be present in negotiations and everyone will win!

    Good Luck Guys! We're cheering for all of You!!!!!!


    Mr. Rogers wrote on September 13, 2007 12:03 PM: I vote to STRIKE the casinos can only keep running with the help and that's a fact you won't see a CEO cleaning rooms and waitressing


    Joe C wrote on September 13, 2007 11:57 AM: Anyone who feels unions are not necessary has not paid attention to history here in the U.S. or anywhere else in the world.
    The problems stems from corruption and abuse of power by leaders of any entity whether it unions, business, government etc.
    Unions also should take in consideration the financial stability of a business when making contracts. Dealers downtown make considerably less then those on the Strip. Of course dealers are non-union but profits vary as do tips. Unions should be flexible, as should business.

    The problem with the Culinary where they lose my support is there is little or no diversity especially for black Americans. If the person is from the Philippines or Mexico the union over all favors Spanish speaking people, and many casino departments have shift briefing in Spanish; another sign of business not encouraging any assimilation to English.

    As far as unions crippling the auto industry, very few if any CEO’s lost money, the crippling is much more complicated than union wages and benefits. Outsourcing, cutting costs instead of selling a quality product and other factors.
    The end is no CEO went broke only received bigger and better pay and huge retirement packages. This isn’t saying unions don’t need to change but blaming everything on unions is wrong. In the same matter I don’t completely blame the illegal alien and cheap labor problems on Hispanic’s, but it doesn’t endear them to me when illegals are a big part of the problem.


    T.C. wrote on September 13, 2007 11:49 AM: After reading these coments I'm glad I left Wal-Mart. The real enemy is cooperate America but it takes Amazing Grace for the blind to see.


    rb wrote on September 13, 2007 10:53 AM: Having come from a state that pays its hospitality employees $2.25 hour and fires them when business slows, it is refreshing to know that the union here has enabled ALL the workers to earn a respectable wage. The people who hate the union here obviously need to go back to California. The older you get the more you realize the SUITS are not interested in the employees but are interested in their bonuses and moving up in the company. We should all be thankful.


    Kim wrote on September 13, 2007 10:20 AM: Nice article by Mr. Spillman; he may rightfully use "fair and balanced" to describe his work. Very refreshing to see journalism as it was meant to be.


    crock wrote on September 13, 2007 09:52 AM: Unions have cripled America. They crushed Detroit and now want to ruin Las Vegas with their outrageous demands. I call for the hotels to crack these overpaid underworked union bosses once and for all.


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