Members of Atlantic City’s UNITE HERE Local 54 labor union rallied on Wednesday in front of Trump Taj Mahal Casino Resort denouncing a court ruling that approved proposed benefit cuts for employees at the struggling gambling venue. Local media reported that about 70 demonstrators were arrested during the protest.
Billionaire Carl Icahn called for the implementation of the benefit cuts in exchange for keeping the property open. Last week, the New Jersey Casino Control Commission gave the green light to Mr. Icahn to swap $292 million of his debt in gambling operator Trump Entertainment Resorts for ownership in Taj Mahal.
The businessman acquired the casino and promised to revive it at a time when gaming revenue in Atlantic City is constantly falling and gambling facilities are forced to shut down. Last year, four properties closed doors, with Taj Mahal barely escaping the same fate. As for revenue, it dropped 4.5% year-on-year to reach $2.74 billion.
During the Wednesday protest, hundreds of casino workers gathered in front of the Taj Mahal building to state their disapproval of the benefit cuts. Sergeant Monica McMenamin, a spokeswoman for the Atlantic City police, said later yesterday that 68 people were arrested for disobeying police orders to move from a key city intersection, as they were blocking the traffic.
Ben Begleiter, a spokesman for Local 54 of UNITE HERE, which actually organized the protest, commented that Taj Mahal employees have lost their “health insurance, retirement security, job security and even their paid lunch breaks.”
Last October, the health care and pension plans were replaced with 401(k) ones. A federal appeals court is expected to announce its decision whether the benefits will be restored. Mr. Icahn has repeatedly said that he would shutter Taj Mahal, if the court rules in favor of the workers.
The Wednesday protest was the ninth one that UNITE HERE Local 54 members have organized since October.
Bob McDevitt, President of Local 54 of the UNITE HERE labor union, said before yesterday’s rally that Mr. Icahn is a “malignancy that needs to be cut” from Atlantic City’s gambling industry.
Mr. Icahn said in response to the accusations that the union is more concerned about collecting fees from its members rather than protecting their interests and jobs. The businessman also reiterated his contention that Local 54 and its costly work rules were among the main reasons why three casinos closed doors last year.
Mr. Icahn argued that the union is purposefully trying to destroy one of Atlantic City’s remaining employers. He also said that its efforts might result in more than 3,000 employees losing their jobs, in case Taj Mahal is shuttered.
