The last labour strike to be organized in New Jersey did not end well as it led to the shutdown of the Trump Taj Mahal. This incidence took place in 2016 and led to the loss of more than 3000 staff positions. When it finally closed its doors, the Trump Taj Mahal was the 12th casino in AC to collapse in a space of 2 years.
Organization Unite Here local 54 is championing for a pay rise for casino workers in AC, many of whom handle challenging positions and responsibilities for little pay. Earlier in the year, UNITE HERE Local 54 announced that casino workers from various establishments including Hard Rock, Tropicana, Harrah’s and Borgata had agreed to authorize a strike when summoned by the worker negotiating committee.
Numerous casinos employees showed up at the Convention centre to cast their ballots, the results of which were promptly revealed at a press conference. The committee had set the deadline for their strike for July 1st if the casinos in Atlantic City had failed to reach an agreement with the workers.
According to Unite Here, casino worker have sacrificed salary increases for the sake of the sector’s growth, which was close to collapsing before the entry of the sports betting market in 2018. In 2014, casinos in AC were facing extinction after peaking in 2006. Atlantic City’s troubles back then started when neighbouring Pennsylvania legalized its market.
This legalization would end up having a considerable effect on AC’s success as Pennsylvania quickly started siphoning AC’s largest business driver- gamblers from Philadelphia. When Pennsylvania’s market started growing, AC’s revenue started to plummet, which is what led to the first round of casino closures.
As such, workers in AC have been forced to endure tough working conditions since then. Since sports betting has changed the landscape for the better, casino workers are therefore fighting for better pay- the same kind that they used to receive in Atlantic City’s heyday. Apart from preserving casino closures and a brutal pandemic that saw thousands of casino workers being laid off, thus causing many to fall behind.
According to a survey conducted by UNITE HERE, approximately 61% of casino workers in AC struggled to keep up with payments including rent and mortgages. The survey also found that 32% of workers struggled with utilities and food. Many of the workers’ contracts expired this May, which is what prompted the workers to band together in order to fight for better working conditions.
What we cover
Settlement finally reached
After several days of back-and-forth talks, union negotiators finally struck deals with management at the various casinos in the city. Bally’s and Oceans finally struck me too agreements with the union representatives when they committed themselves to adopting the terms of contracts that were reached by Caesars, which currently runs 3 of the largest casinos in the city namely Harrah’s, Caesars, and the Tropicana.
Hard Rock would also reach an agreement not long after this. However, the union representatives expect that Resorts and Golden Nugget will soon join fellow operators in improving their workers’ working conditions. With the threat of the strike now out of the way, casinos in the city can now concentrate on providing the best service possible through the busiest travel season of the year.
Had the casino failed to reach an agreement with the union representatives and their workers, it would have resulted in disastrous consequences for the market. As mentioned earlier, the summer months are some of the most lucrative months for casinos in Atlantic City. As such, a strike during such a busy period would have been disruptive as the market still tries to find its footing in a post pandemic world.
This is not the first time that casino workers in Hard Rock have fought for improved conditions
In 2018, casino workers at the Hard Rock Casino in Coquitlam also striked for 6 weeks. Eventually, the brand reached a tentative collective agreement with its employees after 6 weeks of mediation and close to 15 months of back-and-forth negotiations.
Before the strike, the workers had previously negotiated to join the region’s public sector employee’s union. They had therefore been trying to negotiate a contract with the Canadian gaming commission for years. When the membership was ratified, it served as the first collective agreement established between the participating parties.
Employees working at the Hard Rock at the time were demanding fair wages, respect in the workplace, as well as added benefits. According to reports, many of the employees had not been given a wage increase in at least 10 years. This lack of wage increase thus made it impossible for the workers to keep up with the rising costs of living, which caused many workers to look for additional jobs in order to survive.
This groundbreaking agreement would go on to serve as a standard across the gambling provinces in Canada. Before the parties settled on an agreement, mediation talks were held for 6 weeks without workers receiving their pay. Eventually, the provincial lottery regulatory body was forced to convene when the dispute reached a tense point, which is why Hard Rock eventually returned to the bargaining table.
Final Thoughts
The Unite Here Union has been helping casino workers in the city fight for better working conditions for years. At present, the union represents at least 6,000 casino workers and has sought salary adjustments for years prior. In the previous years, the union has always fought for better pension benefits and health care.
However, during this round of negotiation, it also fought for better salaries for casino workers in the city. According to the body, the living costs have continued to rise, which has made it impossible for the workers to make ends meet. Based on research done by the union, despite the challenges brought by the pandemic, casino revenue in AC is at an all-time high for the first time in years. Therefore, casino workers deserve to be compensated with improved wages, as well as more incentives for the hard work they already put in.
