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Tropicana to freeze top salaries, may have layoffs

21 January 2009

ATLANTIC CITY, New Jersey -- As reported by The Press of Atlantic City: "Tropicana Casino and Resort will freeze the pay of top-earning employees and may lay off more than 100 dealers in a series of belt-tightening measures at the troubled gaming hall.

"Employees making at least $50,000 will not receive a pay increase this year, while lower-earning workers will see their raises capped at a maximum of 2 percent, Tropicana President Mark Giannantonio said.

"Tropicana expects to save $820,000 annually through the pay restrictions. The casino also plans to cut costs by reducing work hours, requiring employees to pay more for their medical coverage and eliminating its matching contribution for 401(k) retirement accounts held by senior executives, according to Giannantonio.

"...Tropicana, now in the middle of contract negotiations with the United Auto Workers union, is warning that it may lay off 117 dealers in addition to the other cost-cutting moves.

"...Tropicana and Atlantic City's 10 other casinos have been squeezed by the economic crisis and extra competition from Pennsylvania slot parlors. Recession-wary customers have curbed their discretionary spending on such things as gambling outings, hotel rooms and dinners at high-end restaurants in the casinos.

"Casino revenue plummeted 18.7 percent in December in the biggest monthly drop ever in Atlantic City's 30-year history of legalized gambling. For all of 2008, revenue declined 7.6 percent to $4.55 billion..."

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Tropicana to freeze top salaries, may have layoffs is republished from Online.CasinoCity.com.