10.18.07 As MotorCity averts strike, other 2 likely to follow suit
BY HEATHER NEWMAN and MARGARITA BAUZA
FREE PRESS STAFF WRITERS
Teetering on the brink of a strike that could
have cost Detroit and the state hundreds of thousands of dollars in tax revenue and put hundreds of casino workers on the picket line, the MotorCity Casino and its unions reached a tentative agreement Wednesday that likely will bring labor peace at all three of the city's gambling houses.The agreement averted the first strike threat to Detroit's burgeoning casino industry and concluded a bizarre day in which gamblers were shooed out of the casino -- leaving it filled with workers who were being paid with no customers to serve.
About an hour before yet another strike deadline loomed at 6 p.m., employees were called into a meeting and told that a tentative settlement had finally been reached. Union officials advised workers to show up for their next scheduled shifts, saying that details of the new contract would be available within the week.
The tentative agreement likely will apply also to the Greektown and MGM Grand Detroit casinos.
It ended the latest show of labor unrest in metro Detroit, which has endured two short strikes by autoworkers in the last month and faces ongoing talks to avoid a third.
"This has been a long and tough negotiation process. Both sides worked very hard to reach a fair and equitable contract," said Rhonda Cohen, chief operating officer of the MotorCity Casino.
Union negotiators said they shared the sentiment. They have said that the primary disputes were over pay, health insurance premiums and company 401(k) plan contributions.
"We've reached an agreement that will benefit our members and their families, while also helping the gaming industry move forward in Detroit," said Jimmy Settles, a vice president for the UAW, one of the unions involved.
MotorCity officials declined to comment on contract provisions or specifics of the talks.
Although negotiations continue with the other two casinos, the final contracts will apply to all three. Because negotiators had the most issues to deal with on the MotorCity agreement, they were optimistic it would stop any labor dispute at the other casinos.
"Talks will continue," said Scott Grigg, spokesman for MGM Grand Detroit.
Officials at Greektown Casino did not return repeated calls seeking comment Wednesday evening.
Details of the new agreement will be presented to members of the Detroit Casino Council, which consists of five unions representing more than 2,000 workers at MotorCity Casino.
MotorCity reopened for business shortly after 5 p.m. Wednesday, after shutting its doors and turning away gamblers for nearly seven hours as negotiations continued past a noon strike deadline.
"We are open to the public. We are happy to have them back," MotorCity spokeswoman Jacci Woods said. "It's been a very difficult day, but everybody's back to work."
"I feel very optimistic," said Nikia Johnson, who works in the cage, the area where casino patrons exchange cash and chips. "I'm glad they saw we were serious. And now we want to go back to work."
Robert Allen, 38, of Detroit was one of the first customers in the door after the casino reopened. He lives down the block, he said, and was waiting until he saw it reopen to go play the slots.
"I was going to come earlier, but it was closed," he said. "I was going to go to MGM, but I really prefer coming here. I was happy to hear that employees got what they wanted."
All three casinos' contracts with the Detroit Casino Council expired at midnight Tuesday, and all three negotiated extensions while talks were under way.
The five unions in the council are the UAW, the Teamsters, the Carpenters, the International Union of Operating Engineers, and the Hotel Employees and Restaurant Employees. They represent more than 6,000 workers among the three casinos.
Although the council voted this month to authorize a strike at any or all of the casinos should an agreement not be reached before the contract expired, workers at MotorCity never actually walked out.
Instead, the casino closed its doors but kept workers on the payroll while awaiting news of an agreement or strike.
"They knew we were going to strike. They were preparing," Melissa Johnson, a banker for the cage department, said Wednesday before the tentative agreement was announced.
Johnson, 32, describing one area of dispute, said employees pay $17 a week per family for health insurance. She said the company proposal called for employees to pay $52 a week now, $65 a week next year and $89 a week the year after that.
Employees later said they were told the company had agreed as part of the settlement to keep health insurance premiums the same.
"We feel a little bit of relief, but we don't have details," said Lynn Pride, 28, of Detroit, who works in marketing and promotions at Club Metro at MotorCity.
"We all have children. We can't afford to lose anything," said Juanita Passmore, 42, of Detroit, who has worked as a poker dealer at the casino since it opened in 1999. "The cost of living is going up."
It was unclear how much the temporary closure cost the casino and how much the city and state lost in tax revenues. But, based on 2006 revenue reports, the casino contributes about $300,000 a day to the city and state, with the majority of that paid daily to the City of Detroit.
Casino revenues and tax payments have risen steadily over the last year.
During the closure, Mary Williams of Detroit drove to the casino and said she was turned away at the door.
"I'm disappointed that we can't play, but we are union people," she said. "No one needs to pay more for health insurance, and the casinos are making big money."
Contact HEATHER NEWMAN at 313-223-3336 or hnewman@freepress.com . Staff writer Bowdeya Tweh contributed to this report.
It ended the latest show of labor unrest in metro Detroit, which has endured two short strikes by autoworkers in the last month and faces ongoing talks to avoid a third.
"This has been a long and tough negotiation process. Both sides worked very hard to reach a fair and equitable contract," said Rhonda Cohen, chief operating officer of the MotorCity Casino.
Union negotiators said they shared the sentiment. They have said that the primary disputes were over pay, health insurance premiums and company 401(k) plan contributions.
"We've reached an agreement that will benefit our members and their families, while also helping the gaming industry move forward in Detroit," said Jimmy Settles, a vice president for the UAW, one of the unions involved.
MotorCity officials declined to comment on contract provisions or specifics of the talks.
Although negotiations continue with the other two casinos, the final contracts will apply to all three. Because negotiators had the most issues to deal with on the MotorCity agreement, they were optimistic it would stop any labor dispute at the other casinos.
"Talks will continue," said Scott Grigg, spokesman for MGM Grand Detroit.
Officials at Greektown Casino did not return repeated calls seeking comment Wednesday evening.
Details of the new agreement will be presented to members of the Detroit Casino Council, which consists of five unions representing more than 2,000 workers at MotorCity Casino.
MotorCity reopened for business shortly after 5 p.m. Wednesday, after shutting its doors and turning away gamblers for nearly seven hours as negotiations continued past a noon strike deadline.
"We are open to the public. We are happy to have them back," MotorCity spokeswoman Jacci Woods said. "It's been a very difficult day, but everybody's back to work."
"I feel very optimistic," said Nikia Johnson, who works in the cage, the area where casino patrons exchange cash and chips. "I'm glad they saw we were serious. And now we want to go back to work."
Robert Allen, 38, of Detroit was one of the first customers in the door after the casino reopened. He lives down the block, he said, and was waiting until he saw it reopen to go play the slots.
"I was going to come earlier, but it was closed," he said. "I was going to go to MGM, but I really prefer coming here. I was happy to hear that employees got what they wanted."
All three casinos' contracts with the Detroit Casino Council expired at midnight Tuesday, and all three negotiated extensions while talks were under way.
The five unions in the council are the UAW, the Teamsters, the Carpenters, the International Union of Operating Engineers, and the Hotel Employees and Restaurant Employees. They represent more than 6,000 workers among the three casinos.
Although the council voted this month to authorize a strike at any or all of the casinos should an agreement not be reached before the contract expired, workers at MotorCity never actually walked out.
Instead, the casino closed its doors but kept workers on the payroll while awaiting news of an agreement or strike.
"They knew we were going to strike. They were preparing," Melissa Johnson, a banker for the cage department, said Wednesday before the tentative agreement was announced.
Johnson, 32, describing one area of dispute, said employees pay $17 a week per family for health insurance. She said the company proposal called for employees to pay $52 a week now, $65 a week next year and $89 a week the year after that.
Employees later said they were told the company had agreed as part of the settlement to keep health insurance premiums the same.
"We feel a little bit of relief, but we don't have details," said Lynn Pride, 28, of Detroit, who works in marketing and promotions at Club Metro at MotorCity.
"We all have children. We can't afford to lose anything," said Juanita Passmore, 42, of Detroit, who has worked as a poker dealer at the casino since it opened in 1999. "The cost of living is going up."
It was unclear how much the temporary closure cost the casino and how much the city and state lost in tax revenues. But, based on 2006 revenue reports, the casino contributes about $300,000 a day to the city and state, with the majority of that paid daily to the City of Detroit.
Casino revenues and tax payments have risen steadily over the last year.
During the closure, Mary Williams of Detroit drove to the casino and said she was turned away at the door.
"I'm disappointed that we can't play, but we are union people," she said. "No one needs to pay more for health insurance, and the casinos are making big money."
Contact HEATHER NEWMAN at 313-223-3336 or hnewman@freepress.com . Staff writer Bowdeya Tweh contributed to this report.
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