Billionaire Carl Icahn wrote an open letter to Local 54 of the UNITE HERE labor union, which was released to media earlier today. The investor suggested that the union resorts to tactics that are usually preferred by mobsters, in order to achieve its goals.
Last week, it became clear that Mr. Icahn would save the struggling Trump Taj Mahal from bankruptcy, as a restructuring plan was reviewed and given the nod by a federal judge. He is to acquire Trump Entertainment Resorts, the company that currently manages one of Atlantic City’s iconic casinos, by cancelling the total amount of $286 million in debt he owns.
The businessman’s quarrel with Local 54 is related to the potential reversal of a court order, issued back in October 2014, that permitted benefit cuts for almost 1,100 Trump Taj Mahal workers, who were also members of the labor union. The order in question allowed Trump Entertainment Resorts to end its employees’ health insurance and to replace it with Affordable Care Act coverage. What is more, their pension plans were to be swapped with 401(k) plans.
Unsurprisingly, the union hurried up to appeal the order. But Mr. Icahn stated in his letter that its reversal might lead to the resort’s closure.
The business magnate called UNITE HERE’s leaders “abhorrent” and even likened them to mobsters that would throw bricks through windows, in order to protect their interests. In fact, instead of throwing bricks, the labor union organizes protests and other activities, in order to prevent customers from entering Taj Mahal and gambling there.
Local 54 had its fifth strike last Friday, when members publicly stated their disapproval of the October court order once again.
Mr. Icahn also pointed in his letter that the struggling gambling venue has suffered bankruptcy not only once, but twice. He criticized UNITE HERE members for their constant demands to be made unreasonably high contributions to their health plan.
Local 54 officials promised that they will comment on Mr. Icahn’s criticism in detail later today.
Last year, four Atlantic City-based gambling venues closed doors and Trump Taj Mahal barely escaped this fate. There are eight casinos operating on the territory of the city at present and according to recent reports, its gambling industry keeps on posting revenue declines. This is why officials have recently proposed that the city should try to boost its economy by providing residents and guests with various non-gambling options.
