Billionaire Carl Icahn says buying Atlantic City's Trump
Taj Mahal casino would be "a bad investment for me."
But in a letter Tuesday to Bob McDevitt, the president of
its main union, Icahn says he's willing to do it anyway to save the casino's
3,000 jobs.
Icahn reiterated his call for Local 54 of the Unite-HERE
union to drop its appeal of a court order dissolving the union contract and
canceling health care and pension benefits for workers. Trump Entertainment
Resorts, which Icahn would acquire, has offered to restore workers' health
insurance for two years and contribute to a new pension plan - an offer the
union has yet to accept.
"Bob, as you know, this is a bad investment for me
at this time, evidenced by the fact that no one else is willing to invest even
a dime," Icahn wrote. "I'm amazed that the union is unwilling to
agree to a company proposal that restores two years of health care, provides a
new pension, keeps the Taj open and saves 3,000 jobs - basically ALL of the
things that you and Senator Sweeney have asked for - if you just withdraw the
appeal and give us labor peace."
Icahn would swap the $286 million in Trump Entertainment
debt he owns for ownership of the company and would invest $100 million into
it. But that deal is contingent on obtaining significant tax breaks from state
and local governments - a demand rejected by state Senate President Steve
Sweeney and Atlantic City Mayor Don Guardian.
McDevitt declined to comment on the letter, which was the
latest salvo in a public tug of war between the billionaire investor and the
pugnacious union leader.
The union also objects to other cost-cutting measures the
company is imposing on its workers, including the elimination of paid meal
breaks, the right to hire subcontractors to do some work performed by the
union, and increased daily room-cleaning quotas for housekeepers - all of which
are likely to be sought by the city's other seven casinos as well.
The Taj Mahal is scheduled to close Dec. 12.
"As you know, it's impossible for me to invest in
the Taj Mahal while the appeal is pending, and even if you win the appeal, all
it will do is ensure that the Taj Mahal closes," Icahn wrote to McDevitt.
"Do you really want your legacy, and that of Local 54, to be defined by
closing the Taj and putting 3,000 people out of work unnecessarily? There is no
time left to negotiate, and that is why the company and I have put everything
on the table."
The company has not given the union a deadline to agree
to withdraw its appeal, but began accelerating preparations this week to close
the casino by Dec. 12.
Source: Philly.com
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