Atlantic City casinos are at risk to incur losses if workers vote to authorize a strike over delays in contract talks. The strike is seen to dampen casinos’ recovery efforts following the recent recession.
In 2004, a 34 day strike resulted in $60 million revenue losses for operators.
Workers’ union Unite Here Local 54 members cast their ballots, and 96% of the thousands strong ranks of the workers union voted in favour of a strike. The strike is expected to halt operations at the peak of the Atlantic City season, which strarts July 1.
Beleaguered Trump Taj Mahal will see a strike with members already voting to authorise a strike. Billionaire Carl Icahn controls the casino, following an acquisition during bankruptcy. He pledged to invest $100 million to rehabilitate the hotel but he has yet to shell out most of the funds.
The result is a disgruntled workforce that took to the streets to protest his policies, specifically backed by a court ruling allowing Icahn to cut employee benefits to keep the casino afloat.
Atlantic City has suffered a sharp decline in gaming revenue in previous years due to competition in neighbouring states and the recession. To cope, workers had to take as much as $1,500 annual pay cuts. Average pay amounted to $25,000 a year and the belt tightening led to tougher work rules.
Meanwhile, the eight casinos that survived the recession are on the recovery track, with combined revenue of $4 billion this year.
Reported delays in contract negotiations proved to be the impetus for the strike, with workers taking a vote on the action.
