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NJ Union, Golden Nugget Reach Pact

Tropicana
Flickr User Ben Stanfield

The main Atlantic City casino workers union has reached a tentative deal on a new contract with the Golden Nugget.

Workers will vote Monday night on the proposed deal. Terms were not announced, but contracts reached in recent months with other Atlantic City casinos called for modest raises and successfully fought off management demands that workers contribute for the first time to their pension and health insurance costs.

Assuming the deal is ratified, Local 54 of the Unite-HERE casino union will now have contracts with eight of Atlantic City’s 11 casinos. It does not yet have contracts with the former Atlantic City Hilton, Resorts Casino Hotel and the Tropicana Casino and Resort, which last week declared an impasse in contract talks and said it would implement its own last, best offer with or without union approval.

The Golden Nugget is the former Trump Marina Hotel Casino. Landry’s Restaurants bought it in May, changed the name and invested $150 million into the facility, which has been among the worst performing in the city in terms of casino revenues.

Aside from the Tropicana standoff, labor and management have been trying hard in the past year to avoid a repeat of the 2004 strike, which lasted 34 days and badly hurt both sides.

The desire for labor peace stems from the beating Atlantic City has taken over the past five years from increasing competition from casinos in neighboring states coupled with the continued sluggish economy. In 2006, Atlantic City’s casino revenues reached a peak of $5.2 billion; by the end of last year, they had fallen to $3.3 billion.

The Tropicana standoff appears headed for the National Labor Relations Board, where the union plans to file an unfair labor practices charge. Bob McDevitt, the union’s president, predicted last week that the union would prevail in such an event, saying it can prove the two sides are not really at an impasse.

The Tropicana wants to leave a national pension plan and instead give the money that would have gone into that fund directly to employees as a cash payment or as contributions to their 401k plans.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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