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MGM Mirage Accused of Racist Environment

LAS VEGAS -- The story sounded like something from the South circa 1930.

A black man eyes an attractive white woman and is beaten for the act by an enraged white coworker.

Franklin Morgan Jr. told Nevada gaming regulators Thursday he was the victim of such a racially motivated beating in July 2000 at The Mirage, where he worked as a baggage handler.

But Mirage security workers did nothing in response, he said, leading him to eventually file suit in federal court.

"I was introduced to the reincarnation of terror," a visibly shaken Morgan said as he slowly recounted the story.

He was one of nine past and present MGM Mirage workers to complain to Nevada Gaming Control Board members about working in a hostile, sexist, racially insensitive environment.

MGM Mirage executives later presented four black employees who told regulators that the company has fostered a nurturing atmosphere that has allowed them to excel in their careers. They spoke of promotions, educational opportunities and a satisfying work experience.

"I'm looking to do great things with this company," said Bellagio chauffeur Michael Page, who initially worked as a groundskeeper at the company's Shadow Creek golf course. "I did what was expected of me. I kept my record clean. Doors began to open."

The testimony of the pro- and anti-MGM Mirage contingents came during the public comment portion of Thursday's regularly scheduled meeting of the three-member control board.

It was sparked by community activists Stan Washington and Gene Collins, who have argued for at least two years that Nevada's largest employer, MGM Mirage, has done a poor job of minority hiring and contracting, and they asked state gaming regulators to investigate the anguished workers' claims.

"If we are wrong in what we are doing, God almighty is wrong," Collins said.

Among those who spoke were:

*** Former Mirage food server Darlene Bolton who said she lost her job in the wave of layoffs that followed the Sept. 11 terror attacks and has not been rehired because of her dark skin, although many of her white coworkers have since returned.

"Can someone respond to me (about) why I have been discriminated (against) by this hotel?" Bolton said.

*** MGM Grand hourly worker Darian Isaac who said he was harassed by a manager in June for supporting a unionization push at the hotel-casino.

"One of my supervisors said, 'If it's the last thing I do, I'm going to get rid of that nigger,' " Isaac recalled.

*** MGM Mirage cocktail server Mary Cunningham who complained that older, heavier beverage servers are treated poorly by bosses.

"To even explain the harassment we're put through on a daily basis is hard for you to understand," Cunningham said. "We're treated like we live in a Third World nation. Please, please help us. You have the power to do something."

Control board members Dennis Neilander and Scott Scherer said during a break in the morning meeting that they have limited jurisdiction over such issues, which must first be resolved in the courts or by state and federal human rights agencies. But both said they were disturbed by the stories.

"I don't like hearing allegations of racial discrimination. It's troublesome," Neilander said.

"If the courts would say there was a pattern here," Scherer reflected, "that's obviously going to get our attention."

After the break Las Vegas lawyer Uri Clinton coordinated MGM Mirage's response and declined to respond to the individual claims, citing confidentiality issues, although he did not minimize the anecdotes.

"Some of the stories we heard were all very touching ... and all very touching to the individuals," said Clinton, who is black and ran a failed 2000 bid for a state Senate seat from North Las Vegas.

But he repeatedly told regulators they should not simply look at one piece of MGM Mirage's corporate "puzzle" if they wish to understand its attitude toward minority and female workers.

He noted that MGM Mirage, which has 35,000 Clark County employees, has 17,976 minority employees and has begun an "aggressive recruitment campaign" to find qualified minority workers. Executive compensation, he said, is linked to the push's success.

Clinton argued that the company has created a diversity committee headed by Alexis Herman, a black woman and former labor secretary in the Clinton administration. And the company is committed to treating workers with "respect and dignity," the lawyer noted.

"If you're going to judge MGM, judge MGM within the context so the puzzle's picture becomes clear," Clinton said.

Washington and Collins, local organizers for the National Action Network, publicly raised questions in 2000 about the casino company's minority hiring and contracting efforts, when MGM Mirage was formed from MGM Grand's purchase of Mirage Resorts.

Last month, the two men joined with the Rev. Al Sharpton, the New York-based political activist, to lead 60 placard-carrying protesters outside of MGM Mirage's MGM Grand, where they argued that the company must stop discriminating against black workers and black-owned businesses.

Days later MGM Mirage executives held what they billed as their first annual diversity luncheon, which offered an opportunity for MGM Mirage Chairman Terry Lanni to speak about the issue to 250 vendors, contractors and company executives.

"There are no quick fixes and no magic remedies to address these issues," Lanni said at the time. "As a company, as a community and as a nation we have a long way to go."

Lanni said his company's Clark County gaming properties spent about $445 million last year on goods and services up for bid. An estimated $24.3 million, or 5 percent, of that figure was spent with minority-owned businesses.

"With 28 percent of Clark County comprised of minorities," Lanni told luncheongoers, "we should be doing a lot more than 5 percent of our total business with women- and minority-owned firms."

MGM Mirage executives announced Tuesday that the company has hired Phyllis James, a black woman and former corporate counsel to the city of Detroit, to serve as senior vice president and general counsel, making her the highest ranking black member of MGM Mirage's senior management team.

Yet, Collins said Thursday he was frustrated with the pace of change.

"Every time Mr. Lanni starts up he says, 'Mr. Collins has brought this to our attention,' " the activist said. "And still the numbers get worse."

Hours later MGM Mirage spokesman Alan Feldman said he too was frustrated - frustrated with the claims of Collins and Washington.

"We're not going to let this go unchallenged anymore," Feldman said. "They've had a free ride for long enough."

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