Casino workers resume work despite an unsettled deal

From Thursday onwards, Atlantic City workers will resume their work, without contracts though talks to resolve the differences are on, confirmed both casino employers and the worker union.

As the majority of casino workers’ job-contracts were due to run out exactly at 12:01 a.m., their union is determined on striking out a deal with their employers to the earliest.

Amid fears of showdown similar to the one in 2004, which continued for 34 days, both parties gave assurance on arriving at a mutual settlement to avert any such incident.

Disagreement over hourly-pay and health benefits
For these workers with earning average rate of $12 per hour, casino owners are looking for a cutback of $3 per hour.

Again, the owners, for the first time in casino history - are demanding workers’ contribution in employee-benefits such as health insurance and pension costs.

While on the other hand, the casino union, named Local 54 of Unite-HERE - maintains that since past many years they have given up any hope on pay rise, in order to sustain employee-benefits.

Union strike hurts NJ casino business
The union strike in the Atlantic City casinos has caused huge losses to the casino business in NJ. Since over 5 years, city’s gambling business has suffered a loss worth $1.5 billion. As new casinos in the neighboring states are on the rise, many workers have also fled in hope of better income.

To add to all this, economists suggest sluggish U.S. economy to have a negative impact on casinos, as stats shows people are splurging much less on gambling since the downturn.

Analysts fear a showdown
Analysts, observing the matter closely, say the situation could not be as amicable as it seems, since both union and employers are adamant on their demands.

For instance, McDevitt, whose union represents 14,000 workers, asserts "We've had it… We're not going to allow them to have a sharecropper economy where workers pay to be allowed to work."

Succumbing to the union’s demand would be an absolute “crazy path of self-destruction" quoted a resort executive and complained that the workers are failing on their role to gauge the hard times Casino industry is facing since long.