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Experts: Binion's Horseshoe is Overstaffed

LAS VEGAS -- Binion's Horseshoe has far too many workers, experts say, a problem caused by loyalty to long-term employees and the failure to efficiently manage the property's workforce.

Horseshoe owner Becky Binion Behnen said this week that she plans to cut an undetermined number of jobs at her 51-year-old property.

The planned cuts aren't directly related to new labor costs arising from new union contracts for maids, food-service workers, casino industry experts say.

They say the planned Horseshoe job cuts are partially a symptom of negative downtown trends, compounded by a bloated front-line work force with far more employees than it needs.

The Horseshoe, with 1,700 workers, has almost as many workers as the combined 1,800-worker total of Fitzgeralds and the Four Queens, which have more than three times the Horseshoe's 373 hotel rooms.

During contract negotiations, Coast Casinos Chairman Michael Gaughan and Boyd Gaming Chairman Bill Boyd told her her property was overstaffed by as much as 33 percent, Behnen said.

"This is an old property, with a lot of maintenance that needs to be done" Behnen said, while acknowledging that the property is overstaffed.

One reason the property has too many employees, Behnen said, is her family's loyalty to the property's workers.

"We have many long-term workers," Behnen said. "It's hard to cut those people, it makes it very difficult to chop and get it really lean."

Kamer said he's been asked to help Behnen make needed personnel decisions.

"She intends to take a good hard look at her staffing," Kamer explained. "We'll compare each department's staff to the numbers at comparable properties. There may be reasons why the Horseshoe has more workers in a particular department, but if there's not, she'll have to make cuts."

Kamer declined to say how many workers would lose their jobs.

"It's too early to say," he said. "These operators don't make decisions like accountants. They have a heart."

Since Behnen acquired majority ownership and control of the property from her brother Jack Binion in July 1998, the property has:

-- Waged an ongoing legal battle to prevent the Fremont Street Experience from collecting more than $2 million in overdue fees.

-- Sold one of the Horseshoe's most memorable marketing gimmicks, its $1 million display of 100 $10,000 bills.

-- Eliminated health insurance coverage for some nonunion front-line employees.

-- Cut company-funded matching money for employee retirement plans and canceled Christmas bonuses.

One informed source, who spoke on condition of anonymity, said the Horseshoe's operation is an anachronism.

"They've got a really big security force, and way too many front-line workers for the number of games and rooms they have," the source said. "They could easily cut 25 percent of the workforce."

Ironically, the source said the overstaffing doesn't extend to the middle-management ranks.

"There's hardly any middle managers," the source said. "And that may be why there's too many front-line workers. There's no one to say how much work each person should be doing."

The needed changes will be difficult, Behnen said.

"They're like family to us," she said, declining to say when the cuts would take place.

Experts said that one reason behind the Horseshoe's large work force is its big casino floor.

Binion's Horseshoe has more table games and slot machines than many of its downtown competitors, a legacy of property founder Benny Binion's emphasis on gambling rather than entertainment and decor.

The Horseshoe's casino has 1,856 gaming positions, a total of its 1,352 slot machines plus the 504 betting spots on its 84 table games.

That compares with the 1,252 gaming positions at Fitzgeralds and 1,246 at the Four Queens.

The Horseshoe has 828 union maids, food-service workers and bartenders, more than double the total of union workers at either Fitzgeralds or the Four Queens.

The recent Culinary contract didn't create the need for job cuts at Binion's Horseshoe, the informed source said.

"The contract talks simply brought the matter to a head," the source said. "They've been nickel-and-diming here and there when they can save a lot by running the place more efficiently."

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