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Harrah's Exec: We Won't Cave In

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "The gaming industry is prepared for a long strike if necessary and absolutely will not cave in to union demands for a three-year contract, a top casino executive said Wednesday while lashing out at labor leaders.

"Gary Loveman, president and chief executive officer of Harrah's Entertainment Inc., blamed union leaders for prolonging the walkout. He also accused them of caring more about their 'political goals' than the welfare of their workers.

"Loveman said Harrah's wants to reach a settlement, but will not rush into a deal that could be economically harmful to his company and the rest of the casino industry.

"Local 54 of Unite Here, which represents 10,000 striking workers at seven Atlantic City casinos, has been pushing for a new three-year contract that would coincide with the labor agreements of its union affiliates in Las Vegas and other gaming jurisdictions.

"Casino executives fear that simultaneous contract agreements in Atlantic City and Las Vegas would give the union too much clout at the bargaining table and have instead proposed a new five-year deal for workers here. Loveman said the five-year offer includes a wage increase of 11 percent.

"Disagreement over the length of the pact has emerged as the main sticking point in the strike. Loveman said Harrah's has agreed to union demands on all other major contract issues, but will not budge on its proposed five-year offer.

"'Let me be very clear about our position: Despite the inconveniences this labor action creates, Harrah's will not concede on the issue of contract length,' he said. 'We are not willing to ratify a contract that supports union leaders' interest at the expense of our employees and colleagues in Atlantic City.'…"

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