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Union Seeks Ordinance on Casino Layoffs

28 November 2001

RENO, Nevada -- As reported by the Associated Press: ``A union proposal for mandatory severance pay for workers who lose their jobs in big layoffs at hotel-casinos may not be legal because it targets only one industry, Reno's city attorney said Tuesday.

``The Reno City Council directed City Attorney Patricia Lynch to conduct further legal research on the matter and return to the council with a status report on Dec. 11.

``The Culinary Union has asked the City Council to pass an ordinance requiring employers who lay off a large number of casino-hotel workers at one time to provide one week of severance pay for each year the worker was employed by the company.

``The move comes in response to last month's closure of the Flamingo Hilton in downtown Reno, resulting in the layoff of 1,000 workers.

``Lynch told the City Council a preliminary analysis indicated such a severance ordinance might be void under state law because it would apply only to the hotel-casino industry. In addition, she said the National Labor Relations Act may pre-empt local governments from passing an ordinance dealing with severance pay.

``...Council members suggested the union may be better off pursuing statewide legislation through the Nevada Legislature.

``They also asked Reno Mayor Jeff Griffin to contact the Flamingo's owner, Park Place Entertainment Corp. of Las Vegas, to see if the company would consider additional voluntary action to help laid off workers..."

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