Summary
- Four casinos in the city may lose $2.6m a day.
- The Unite Here Local 54 has authorized a strike if new contracts are not signed.
- The Borgata may fall short $1.6m a day as Caesars properties may lose $1m.
A strike is imminent this weekend in Atlantic City, if the Unite Here Local 54 does not receive new contract agreements with Caesars Entertainment and Borgata Casino. A total of four casinos would be affected by the strike with millions lost each day as employees do not go to work until they receive new updated benefits from employers.
Employees are ready to strike, and the union has authorized the action if the two casino operators are unable to sign new wage contract agreements by the beginning of next month. This leaves only a few days this week for the operator to make the changes.
The Borgata is the top performing casino in Atlantic City that is set to lose the most each day due to the strike. As much as $1.6m may be left on the table if an agreement is not met. Three casinos operated by Caesars Entertainment (Tropicana, Harrah’s, and Caesars) could lose up to $1m each day.
Projections of losses were created based on revenues earned from previous fourth of July holidays. It’s a super busy time for casinos in New Jersey, and with the holiday falling on a long weekend, visitor numbers are expected to increase.
What do the Union Members Want?
Members of the Local 54 union want to see a wage increase for employees due to financial needs surrounding the COVID-19 pandemic and the recent inflation costs. Union leaders say that casinos are doing well and need to help their employees be able to make ends meet.
Employees of casinos that are part of the union want to see a pay raise as they struggle to pay for rent, mortgages, and other necessities like food. A recent survey of just under 2,000 union members showed that 61% have trouble paying their mortgage and rent while 32% are struggling to pay for food needs. A higher 37% of those surveyed need help paying for utilities.
Earlier this month, employees of casinos met outside the Tropicana to rally for new contracts with pay raises. Existing contracts with eight of the casinos in Atlantic City expired on May 31. If new contracts are not signed in the next few days, a strike will be imminent on the 1st. Employees are also ready to strike against the Hard Rock by July 3.
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