Trump Taj Mahal’s executives claim that the main casino workers’ union in Atlantic City refused to sign a deal that would have saved the casino from closure and would have prevented its 3,000 employees from losing their jobs.
Yesterday, December 11, Bob Griffin, chief executive of Trump Entertainment Resorts, sent a letter to Bob McDevitt, who is the current president of Local 54 of the UNITE HERE labor union. Mr. Griffin asked the union to withdraw its appeal of the cost-reduction package court order until 5 p.m. on Monday. He believed that the deal would be finalized earlier this week. However, it turns out that the union refused to sign it.
As it was previously announced, Carl Icahn has shown interest in taking up the reins of the company and its struggling casino. Yet, he stated that he will do this only if Taj Mahal’s $286-million debt is canceled and he is offered considerable tax reliefs.
According to Griffin’s letter, the union had made the entertainment company believe that the agreement was to be inked. However, it turns out that even though Trump Entertainment Resorts promised that the deal “would have kept the Taj open, restored the union health care, restored the union work rules, and established a new pension fund”, the union was still not willing to sign it.
McDevitt refused to comment on the matter.
Last week, the company announced that its last remaining casino will probably be closed on December 20. However, Mr. Griffin did not specify whether the casino will be shuttered, provided that the union does not drop its appeal until Monday.
He pointed out in his letter to McDevitt that the union had put the company into a difficult position. Currently, Taj Mahal is loosing its investors one by one and therefore, it is running short of money. The deal between Trump Entertainment Resorts and the local union of casino workers seems to be the company’s last resort to help its employees.
Last week, Senate President Stephen Sweeney and Sen. James Whelan presented a tax relief plan, according to which casino owners would need to pay the total amount of $150 million instead of their taxes for two years. Thus, the so-called investment alternative tax will be used for some new purposes, apart from the implementation of various renovation projects. For instance, a new type of school aid, which will be applicable only to local schools, is planned to be introduced. Furthermore, up to $30 million can be used every year, so as for the city to be able to pay part of its debt.
