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Unions Grant Contract Extensions

LAS VEGAS -- Union officials granted 30-day contract extensions to eight Las Vegas casinos Wednesday afternoon and were expected to follow suit with eight more later in the evening, delaying until June 30 a midnight Friday strike deadline.

The two sides agreed to the delay because little time was left between Monday's completion of tentative union deals with major Strip operators and the opening of talks with their 17 smaller counterparts.

Coast Casinos' Barbary Coast received a 30-day extension on Tuesday.

"We thought it was appropriate. We spent an enormous amount of time negotiating with the larger Strip companies," said John Wilhelm, the chief negotiator for Culinary Local 226 and Bartender's Local 165.

The extra time will be granted just once, noted Wilhelm, who said that union leaders will not accept contracts that are shorter than the five-year agreements reached with major Strip employers.

Terms of the pension and health insurance portions of the remaining deals also must offer the same benefits as the Strip pacts, Wilhelm said.

"We're committed to finding a common ground, but our members in the smaller houses are not prepared to enter into second-class contracts," he said.

Negotiating sessions with Boyd Gaming - owners of the Stardust, Main Street Station and Fremont - are set for this afternoon. Meetings with Riviera executives are set for Friday.

Despite the extra 30 days, lawyers representing several non-Strip casinos said their clients can't afford the union proposals.

"We can only pay what we can afford," said lawyer Gregg Kamer, who represents the Plaza, El Cortez, Las Vegas Club, Western, Binion's Horseshoe, Fitzgeralds and Four Queens. "Everybody might want a Porsche, but if you can only afford a Kia, then that's all you can get."

When asked whether the threat of a strike remains, Wilhelm offered a guarded assessment.

"I'm still hopeful and optimistic that some of the hotels will reach an agreement this week, but I have no way of predicting the outcome," he said.

Park Place Entertainment, MGM Mirage, Mandalay Resort Group, Harrah's Entertainment and the Tropicana have agreed to raise their hourly contributions by $3.23 1/2 per worker by the fifth year of the proposed pacts.

Most of the money would pay to replenish the union's financially troubled health and welfare fund, which has been plagued by rising health-care costs.

The companies have also agreed to reduce housekeeper workloads, potentially forcing hotel operators to hire additional staff.

The tentative contracts await a vote of the unions' rank and file, who make up about 75 percent of the 47,000 members of the Culinary and Bartender's unions.

"The Castaways is in competition with non-union properties on the Boulder Strip, properties that pay their workers $1 to $3 less per hour," said Castaways lawyer Sal Gugino. "The way it stands right now the proposal is far too rich in comparison to our ability to pay."

Gugino and Kamer have scheduled a joint June 7 meeting with union officials to bargain on behalf of their eight properties.

"They invited us to make a presentation showing why these properties are struggling," Kamer said.

The extensions followed by a day word from Coast Casinos Chairman Michael Gaughan that his Barbary Coast was the first to receive a 30-day extension.

"I have a good relationship with the Culinary," Gaughan said. "I've never had a strike, and I don't expect one this time."

He said a Tuesday negotiating session with union officials included a frank discussion.

"They told us their problems with us, and we told them some of our problems," Gaughan explained. "Our company is doing well, but the Barbary Coast isn't doing as well. We talked about that, and they understand that."

Gaughan declined to say whether he would approve the terms OK'd by the Barbary Coast's Strip neighbors.

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