Saturday, July 25, 2015

Trump Entertainment Loses Bid to Silence Union Campaign: Federal laws protects workers’ efforts to inform customers of labor issues, judge says



UNITE-HERE Local 54 in Atlantic City did not violate federal bankruptcy law by discouraging Trump Taj Mahal's events clients from patronizing the bankrupt resort.

Trump Entertainment Resorts, Taj's corporate parent, said emails and telephone calls the union made to the resort's clients violated the core protection of the U.S. bankruptcy system - the "automatic stay," which generally bars groups from interfering with a bankrupt company's assets.


The company wanted compensation for purportedly lost business; a court order barring the union from issuing similar messages; and an order forcing the union to send a letter to Taj clients admitting that the union's initial messages were misleading.

But U.S. Bankruptcy Judge Kevin Gross denied the request Tuesday, finding that the communications, which were part of the union's larger boycott campaign against the casino-hotel, are protected by federal law on labor organizing.

"We knew...that Carl Icahn didn't have the legal right to stop us from talking to Taj Mahal customers. We are grateful to the numerous convention groups as well as individuals that have honored that boycott and booked elsewhere in Atlantic City," Local 54 President Bob McDevitt said in a statement.

Last week unionized Trump Taj Mahal employees voted by a wide margin to authorize their negotiating committee to call a strike at Taj — the first such vote in Atlantic City in more than a decade.

The union has been warring with Icahn — Taj’s chief lender who is taking ownership of the Boardwalk property as it emerges from Chapter 11 bankruptcy — over a decision by casino executives last year to end pension and health insurance for about 1,100 unionized Taj workers.

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