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Latest News - September 2014

September 10, 2014
Trump Entertainment bankruptcy centers around union negotiations
Source: Philadelphia Business Journal
By: Jared Shelly

The Trump Entertainment bankruptcy that's threatening to close the Trump Taj Mahalcasino is centered around union negotiations over retirement and health care. In its bankruptcy filing, Trump Entertainment cited high labor costs (along with high real estate taxes) as a main culprit of financial hardship.

D. Taylor, president of the Unite Here union told Bloomberg that workers rejected a proposal to remove their health care benefits and pension plans. Here's more:

Trump Entertainment asked for concessions including the elimination of a traditional union pension in favor of a 401(k) plan, and the end of the company’s health-care plan, according to two people with knowledge of the situation.

Employees would instead be given $2,000 in credit to use toward one of the plans available through the 2010 Patient Protection and Affordable Care Act, said the people, who sought anonymity because they weren’t authorized to speak publicly.

But the New York Times reports that Trump Entertainment's problems go well beyond labor issues — which is actually another reason the union is standing firm:

Trump Entertainment did not pay millions of dollars in property taxes last month, and, the company said, it will not be able to pay off more than $285 million in bonds.

“If our members were to work for minimum wage with no benefits, it wouldn’t be enough to keep this property in the hands of its current owners for a year,” Bob McDevit, president of Unite Here Local 54, said in a statement. “Trump’s management failed to capitalize on over $130 million in gaming revenue so far this year from Taj Mahal. Fundamental to Trump’s problems is the fact that the company had almost $300 million in debt.”

 

 

 


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