The Trump Taj Mahal casino is offering to restore health
insurance to its workers as part of a last-ditch effort to keep the struggling
Atlantic City casino open.
Trump Entertainment Resorts said Saturday it has offered
to restore health insurance to its 3,000 workers for at least two years if the
union will drop its appeal of a court order that canceled the health insurance
and pension plan for casino workers. It made the offer in a letter to Bob
McDevitt, president of Local 54 of the Unite-HERE casino workers union.
Company president Robert Griffin told McDevitt the casino
plans to close Dec. 12 and that the shutdown process will accelerate next week.
But he says if the union withdraws its appeal, the Taj will remain open.
"Given that health care is the most important piece
of your agenda, we have found a way to restore full health care to Local 54
employees at the Taj," Griffin wrote. "As a result, we cannot think
of any reason why you would not accept the ... proposal and allow the Taj to
stay open and to save jobs."
Atlantic City started the year with 12 casinos. The Taj
Mahal would be the fifth to close this year amid decreasing revenues and
increased competition from neighboring states. If it shutters, the 3,000
workers would join some 8,000 other Atlantic City casino workers who have lost
their jobs this year.
In addition to restoring health care for at least two
years, the company is offering to contribute to a proposed new pension plan the
union had discussed during negotiations. In return, the union would have to
withdraw its appeal of an Oct. 17 bankruptcy court order canceling the union's
contract with the Taj Mahal, freeing the casino from costly health care and
pension obligations.
McDevitt declined to comment on the letter. In recent
weeks, he led three high-profile demonstrations against the planned shutdown of
the Taj Mahal and billionaire investor Carl Icahn's role in it.
The union's grievances extend beyond the termination of
health care and pension plans. The company also wants to eliminate paid meal
breaks and raise productivity quotas for some workers, which would have the
effect of reducing their total compensation.
Trump Entertainment is pursuing a complicated plan to
save the casino by transferring ownership to Icahn, who would pump $100 million
into it. That investment is contingent on getting city or state officials to
sign off on $175 million in assistance. New Jersey Senate President Steve
Sweeney and Atlantic City Mayor Don Guardian have rejected that request, and
Gov. Chris Christie was decidedly cool to it at a forum Wednesday on the city's
future.
In his letter to the union, Griffin wrote that, "We
have made significant progress in our discussions with representatives of the
state and local governments on a package of property tax relief and other
incentives, which gives us confidence we will be able to keep the Taj Mahal
open if you accept the ... proposal."
"There is nothing to be gained from the
appeal," Griffin wrote. "Even if Local 54 wins, the Taj Mahal will
remain closed and Local 54 will have gained nothing."
Source: ABC
News
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