Forbes Reports Ilitch-Owned Franchise one of NHL's Most Valuable

Detroit Red Wings Second  Most Profitable US Franchise;
 MotorCity Casino Workers Forced to Pay Own Healthcare Costs

Forbes' 2011 NHL Team Values

Forbes is out with its 2011 NHL Team Values: The Business of Hockey. Despite economic woes among other US sectors, Forbes reports the NHL valuations have hit an all-time high. The Detroit Red Wings, owned by Michael and Marian Ilitch, valued at $336 million, ranks #4 out of 30 NHL teams. That's up 7% over 2010.

Forbes Profile
Billionaire Michael Ilitch, through Olympia Entertainment, has a highly integrated and valuable entertainment empire. In sports, Olympia controls the Red Wings, Little Caesars AAA hockey club and baseball's Detroit Tigers, as well as their stadiums, Joe Louis Arena (hockey) and Comerica Park (baseball). Outside of sports, Olympia runs the Fox Theatre (over 4,800 seats), Cobo Arena and Hockeytown Cafe,voted the number two sports bar in the country week after week by ESPN2’s Cold Pizza. Olympia also owns food distribution businesses that Ilitch leverages at his stadiums and a casino in Detroit.

The Red Wings are a significant part of the annual marketing plan for the Ilitch-owned MotorCity Casino frequently making guest appearances and hosting star-studded poker tournaments. Unfortunately for the Ilitch bank the same isn't true for the Ilitch-owned Detroit Tigers baseball team. Given its history of scandals, Major League Baseball has specific regulations prohibiting the mingling of baseball and gambling interests.

The Ilitches realized a $16.3 million operating income from their NHL franchise this past season ranking it the #2 most profitable US franchise; and players and management continue to draw multi-million dollar paychecks. Ilitch continues to fuel up the Gulfstream Jet for the clan's personal travel and vacation in Boca Raton, FL. Their business partner paid $5.4 million cash for a New York Penthouse. Those aren't the circumstances for the hardworking staff at MotorCity Casino. In a labor negotiation that took place earlier this Fall, the Ilitch gambling hall workers were told to start paying some of their own healthcare costs or face job loses.

#Occupy Ilitch Holdings, Inc.

MotorCity Casino Workers Told to Pay Health Care Costs or Face Job Lose; MGM Grand Detroit workers say, 'Hell No!" reject contract | Crain's Detroit Business

MGM Grand Detroit workers reject contract, will stay on the job | Crain's Detroit Business
10.28.2011

Unionized workers at the MGM Grand Detroit casino have voted overwhelmingly to reject a contract.

The rejection comes after workers at Greektown Casino-Hotel and MotorCity Casino Hotel both approved the contract.

Employees voted 1,481 to 292 against the contract, according to the Facebook page of UAW Local 7777, one of five unions that make up the Detroit Casino Council coalition of unions.

Also in the council: Hotel Employees and Restaurant Employees Local 24, Teamsters Local 372, Operating Engineers Local 547 and the Michigan Regional Council of Carpenters.

The unions are reportedly planning to picket in front of the casino this weekend, but employees will be reporting to work.

The action follows a tense stare-down last week that nearly resulted in a strike.

The Detroit Casino Council authorized a strike two weeks ago, then filed two extensions before reaching an agreement in principal last Wednesday.

The deal reportedly includes a $2,500 signing bonus for employees but also a deductable for health insurance coverage.

MotorCity Casino has struggled somewhat financially because, among other things, it hasn't produced what had been anticipated and Mrs. Ilitch has leveraged its assets more highly than had been projected. But even more significant, Marian Ilitch and her unlicensed gambling partner Michael Malik are draining millions from MotorCity Casino out of Detroit to finance their failed quests to open additional gambling halls in New York, California and Hawaii. It's a shame that they're draining profits at the same time they're telling MotorCity Casino workers they'll have to start paying for health care or be faced with job loses. Ilitch and her husband Mike are now worth $2 billion -- that's $300,000 more than a year ago.

See also:

• MotorCity Casino Workers Give Back Gains to Keep Jobs; Ilitch gets richer
• Forbes says Ilitch worth $2 Billion; Ranking #212 among Richest Americans, #5 Richest in Michigan
• Detroit #1 on Forbes' List of America's Most Dangerous Cities!
• Ilitch Gets Richer on the backs of Detroit's working class; Detroit still America's most Dangerous City
• Ilitch Unlikely to get Taxpayer Subsidies for a New Detroit Hockey Arena

MotorCity Casino Workers Give Back Gains to Keep Jobs; Ilitch gets richer

Casino workers agree to givebacks

Greektown's unions vote for deal with health care changes

10.26.2011

Detroit— Workers voted Tuesday to ratify a four-year agreement with MotorCity Casino.

Nearly 70 percent of the MotorCity workers who voted approved the new contract, compared to 74 percent at Greektown on Monday.

Union workers at MGM Grand Detroit will vote Thursday.

"As a trustee of the local and a member of the bargaining team for Teamsters Local 372, I'm elated with the 'yes' vote," valet Mark Williams said in a statement issued Tuesday night by the local, which represents valets, front desk staff, phone operators, warehouse, grounds and general workers. Williams has worked at MotorCity for nine years.

"This was a tough set of contract talks when you factor in the difficulty of our region, but our bargaining team worked hard with our membership and at the negotiation table to get the best possible agreement for our members," said Dave DeLong, president of Teamsters Local 372.

The Detroit Casino Council, a coalition of five unions, including the Teamsters, represents nearly 6,000 union members at Detroit's three gambling houses. While the Detroit Casino Council did not release details, UNITE HERE Local 24 indicated on its website that workers would make monthly payments on health care coverage.

Greektown, which last year emerged from bankruptcy protection, has posted a 1.8 percent revenue loss through the first nine months of the year.

Revenue grew at MotorCity and MGM Grand through the first three quarters this year.

"It seems to me that this is a tough time economically, and workers in many industries, especially unionized workers in nontechnology industries, are being convinced they have to give back gains to save jobs," said Frank Fantini, editor and publisher of Fantini's Gaming & Lodging Reports in Delaware.

All three casinos assumed large debt loads to build new casinos and hotels required by Detroit, said Jake Miklojcik, a Lansing-based gaming consultant who sat on Greektown's board of directors during bankruptcy. The casinos make mediocre profit margins compared with other industries, he said.

"You don't have as much wiggle room because of the debt," he said.

Forbes reported in September that Mike & Marian Ilitch are worth $2 billion.  That's up from $1.7 billion in 2010.  Marian Ilitch owns Detroit's MotorCity Casino.

See also:

• Forbes says Ilitch worth $2 Billion; Ranking #212 among Richest Americans, #5 Richest in Michigan
• Detroit #1 on Forbes' List of America's Most Dangerous Cities!
• Ilitch Gets Richer on the backs of Detroit's working class; Detroit still America's most Dangerous City
• Ilitch Unlikely to get Taxpayer Subsidies for a New Detroit Hockey Arena

MotorCity Casino Workers will Vote on Tentative Labor Agreement Tuesday

Greektown Casino workers OK agreement

10.24.2011

By Joe Rossiter

Workers at Greektown Casino voted today to ratify a new, four-year agreement by a margin of 3-1, said Shawn Ellis, communications director for Teamsters Local 372.

The union vote was the first of three that will take place in the next several days. MotorCity Casino workers will vote on the tentative agreement Tuesday, and MGM Grand Detroit workers will vote Thursday. Voting will take place at the Teamsters facility at 2800 Trumbull Ave... (Complete Story)

Motor City Casinos to Detail Deal to Workers

Casinos to detail deal to workers

10.21.2011

B y Louis Aguilar

laguilar@detnews.com

Detroit casino workers should get details of the tentative deal reached by five unions and the three gaming halls starting possibly as early as Saturday.

Union members will be briefed on the agreement this weekend, said Michelle Martin, spokeswoman for the United Auto Workers international union, whose Local 7777 was involved in the Detroit Casino Council talks with MGM Grand Detroit, MotorCity Casino-Hotel and Greektown Casino Hotel. A tentative deal was reached Wednesday.

On their websites and Facebook pages, the UAW local and UNITE HERE Local 24, which represents hospitality workers at the casinos, were not providing details of the tentative four-year agreement or even given a firm date and time when agreement briefings for members would be given. None of the casinos would reveal or confirm any details of the tentative contract.

The deal would cover the 7,090 licensed employees at the three casinos, and other workers who are not required to be licensed by the state's regulatory board.

Detroit has the country's fifth largest casino gaming market. Last year, the three casinos generated $1.38 billion in revenue, a 3 percent increase over 2009.

Some union workers have already declared they don't like the tentative deal. They have posted comments on the UAW Local 7777's Facebook page worrying that the four-year deal doesn't give them a sufficient pay hike and may increase health care premiums.

One worker identified as Carrie Williams said she worries that union families "cannot afford this contract." The casinos pushed for workers to pay for more of their health care coverage during this year's negotiations and in 2007.

Workers at all five unions authorized a strike if negotiations failed.

Thousands Threaten to Strike Motor City Casinos at Midnight

3 Detroit casinos face strike threat at midnight by thousands of workers

 10.18.2011

By Matt Helms

mhelms@freepress.com, @matthelms or 313.222.1450.

Thousands of unionized workers at Detroit’s three casinos are threatening to strike if management and labor can’t reach a deal by midnight tonight.

Negotiations were ongoing today after being extended for 48 hours past a Sunday deadline.

Representatives of several of the five unions on the Detroit Casino Council, representing dealers, hotel and restaurant workers, engineering, maintenance and other fields, couldn’t be reached this
morning.

UNITE-HERE Local 24, which represents hospitality workers at the casinos, said in a statement that members of the casino council on Oct. 11 approved a strike vote “by a margin of 97% in order to maintain the wages, benefits and working conditions they deserve” if an agreement isn’t reached.

Motor City Casino-Hotel spokeswoman Jacci Woods said only that management and the unions “have agreed to continue to meet and negotiate in good faith in hopes of reaching an agreement on a new contract prior to the new deadline.”

Greektown Casino-Hotel declined comment. MGM Grand Detroit officials couldn’t immediately be reached.

These are critical times for the casinos.

Despite having done well in the recession compared to the U.S. gambling industry as a whole, they're heavily indebted and face growing competition from Michigan’s Indian casinos and a new gambling hall set to open in Toledo next year.

Even third-place Greektown, which went through bankruptcy from which it emerged in June 2010, would have fared better without the debt all three casinos took on to build 400-room hotels required under city licensing deals, said Lansing-based casino analyst Jake Miklojcik.

“It’s like having a $300,000 house with a $600,000 mortgage,” said Miklojcik, a member of the board at Greektown during bankruptcy.

Motor City Casinos Nearing Union Contract Deadline

Deadline looms in Detroit casino contract talks

10.18.2011

By JACLYN TROP

jtrop@detnews.com

313.222.2575

Contract extension with unions is set to expire at midnight

The New Contract Affects Dealers, Bartenders And Others Involved With Gaming

Detroit's three casinos and their unions face a midnight deadline tonight to reach a new deal before a contract extension expires.

MGM Grand Detroit, MotorCity Casino-Hotel and Greektown Casino Hotel as well as UAW Local 7777 and other unions are negotiating on economic issues.

Members of the unions' Detroit Casino Council have approved a strike if an agreement is not reached by the deadline "to maintain the wages, benefits and working conditions they deserve," according to a statement by Hotel Employees and Restaurant Employees Local 24, which represents cleaning, maintenance and other workers.

The Detroit Casino Council includes workers from Local 24; UAW Local 7777, which represents dealers and slot technicians; Teamsters Local 372, which represents valet and warehouse employees; Operating Engineers Local 547, which represents engineers and other trades positions; and the Michigan Regional Council of Carpenters.

"MotorCity Casino Hotel and the Detroit Casino Council have agreed to … continue to meet and negotiate in good faith in hopes of reaching an agreement on a new contract prior to the new deadline," said MotorCity spokeswoman Jacci Woods in an email.

"I am unable to comment while negotiations are in process," said MGM spokeswoman Yvette Monet in Las Vegas.

Greektown had no comment. UAW Local 7777 did not return calls for comment.

Revenues by the three casinos have increased 2.9 percent through the first nine months of this year compared with the same time last year, according to the Michigan Gaming Control Board.

The two largest gaming halls — MotorCity and MGM Grand — have experienced revenue increases through the first three quarters. Greektown, which last year emerged from bankruptcy protection, has posted a 1.8 percent revenue loss through the first nine months of the year.

National gaming analyst Frank Fantini has said the Detroit casinos' results reflect gains from the economic recovery.

It remains uncertain how much of the revenue increases are fueled by promotional free-play credits that customers redeem at casino games.

Unlike some other states, Michigan requires casinos to count free-play incentives as official revenue.

UAW other labor organizations back off-reservation casino scheme

A press release distributed 6.20.08 by the Sault Ste. Marie Tribe of Chippewa Indians reads:

In a letter sent today to members of the U.S. House, the UAW said it "strongly supports" H.R. 4115 and H.R. 2176 because the legislation would create jobs, keep gaming revenues in the United States, and provide a much needed economic boost to the communities where the new casinos would open. The UAW also noted that the bills are consistent with state law in Michigan and with past land claim settlements approved by Congress for other tribes.

"For all of the foregoing reasons, the UAW strongly supports H.R. 2176 and H.R. 4115," the union said in its letter. "We urge you to vote for these bills when they are considered by the House and to oppose any weakening amendments."

H.R. 2176
H.R. 4115

CA voters approve four gaming compacts

2.06.08

Voters back gambling measures

By Nancy Vogel, Los Angeles Times Staff Writer

SACRAMENTO -- Measures to uphold an expansion of gambling at Indian casinos were headed for victory with about 90% of the state's precincts counted this morning, while an initiative to adjust the Legislature's term limits was behind. Roughly 56% of voters favored Indian gaming propositions 94, 95, 96 and 97. About 53% of voters opposed the term limits measure.

Another measure, Proposition 92, to guarantee community college funding, was rejected by about 58% of voters. As expected, voters also appeared to be rejecting a transportation funding measure, Proposition 91, that had been abandoned by its authors months ago.

A strong lead opened early for the gambling measures, which would give state taxpayers a share of slot machine revenues.

"Right now it looks like the voters are saying yes to hundreds of millions of new dollars each year," Roger Salazar, spokesman for the Yes on Propositions 94, 95, 96 and 97 campaign, said Tuesday. "We hope when the final tally comes in that will still be the case."

Scott Macdonald, spokesman for the campaign that opposed the casino measures, acknowledged late Tuesday that the returns so far "don't look good."

The battle was hard-fought, Macdonald said, even though opponents of the gambling propositions were outspent 4 to 1, because "people have serious reservations about what's in these compacts."

The gambling propositions asked voters to uphold or nullify four agreements negotiated by the governor and approved by the Legislature.

The pacts were forged to allow four Riverside and San Diego county tribes to add 17,000 slot machines to the 8,000 they already operate. In return, the tribes would pay the state a combined minimum of $123 million a year and up to 25% of the revenue from the new machines.

Advertisements for and against the measures have dominated airwaves for weeks. The campaign came within a few million dollars of breaking a record. Both sides raised a total of $147 million, just shy of the $152 million campaign over a 2006 oil tax initiative.

The four tribes with agreements at stake -- the Agua Caliente Band of Cahuilla Indians, Pechanga Band of Luiseño Indians, Morongo Band of Mission Indians and Sycuan Band of the Kumeyaay Nation -- said the deals could be worth $9 billion to the state over the next 22 years.

Opponents called that a rosy assumption and argued that the agreements would further enrich four tribes without increasing payments to tribes without gambling operations or with small casinos.

The four referenda were financed by Terrence Fancher, who manages companies that own California horse racetracks and have a stake in a Las Vegas casino; the casino workers union Unite-HERE, which dislikes labor provisions in the compacts; and two tribes that struck different gambling agreements and different revenue-sharing arrangements with Gov. Arnold Schwarzenegger in 2004...

Ilitch casino workers ratify contract

10.23.07

MotorCity workers ratify contract

By Jonathan Eppley

Workers at MotorCity Casino ratified a new four-year contract on Monday.
Members of the Detroit Casino Council, made up of four unions, voted in favor of the labor contract that is to provide pay increases and protect employee health care. About 73 percent of the voters approved the contract.

The contract is to include a $1,000 up-front bonus and 4 percent pay increases over the next four years for all casino employees.

Approximately 2,000 members make up the casino workers’ council, which includes members from the UAW, Unite/HERE, Operating Engineers and Teamsters unions. The four unions represent dealers, cashiers, valets, cooks, servers and other types of workers.

Included in the contract is health care coverage to be maintained with no increase in premiums employees pay into the plan. However, new hires are to pay a co-share premium.

Also outlined in the new agreement are improvements in dental coverage, employer contributions to employee 401(k) accounts and additional funds for tuition assistance.

“This is a step forward for our members, our families and the gaming industry in Detroit,” said UAW Vice President Jimmy Settles in a statement.

“Detroit casinos are growing, with more than $1 billion in new investment in our city. Good-paying union jobs will be a key part of the expanded gaming industry, along with the highest possible standards of customer service,” Settles said.

Contract negotiations are ongoing at MGM Grand Detroit Casino L.L.C. and Greektown Casino L.L.C.

MotorCity Casino has tentative agreement on new union contracts; disputes were over health care, pay, retirement

10.18.07

Casino deal keeps cash flowing
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.

On heals of 2005 NHL lock out, can Ilitch recover from current casino labor dispute?

The Ilitch family and the Detroit Red Wings have never fully recovered from the NHL's 2005 labor dispute. Ilitch failed to sellout Joe Louis Arena both during last year's playoffs (2006-2007) and this years opening games (2007).

Hockeytown fans have complained of the high price of Red Wings tickets among other things and feel they've not been courted or treated well since the 2005 lockout.

And now, the Ilitch organization, in negotiations with labor unions for contracts at MotorCity Casino has reportedly locked the doors to its Detroit gambling hall and closed down its parking structure. Bus loads of disappointed gambling patrons are being turned away and heading to the new MGM Grand Detroit and elsewhere.

The question is, how long will the Ilitch organization continue to lock out patrons of its newly expanded gambling hall; and will the opening of MotorCity Casino's new hotel facility next month be enough to bring about a swift recovery in lost gaming revenue?

MotorCity Casino's parent company CCM Merger, Inc. currently has a negative credit rating with Moody's; and both Moody's and Standard & Poor's were forced to downgrade the casino's holding company's credit ratings after the first year of Ilitch ownership because it was leveraged at rates higher than projections investors were originally told to expect.

The new MGM Grand Detroit is a big winner with lockout of MotorCity Casino patrons

According to the Detroit Free Press, MotorCity Casino is turning away patrons as it has locked down the casino in light of ongoing labor negotiations/dispute; and patrons are heading to other area casinos including the new MGM Grand Detroit:

"According to reports buses of patron were turned away and forced to find gaming at other venues.

"Scott Grigg, spokesman for MGM Grand Detroit, which is a mile south of the MotorCity Casino said simply, 'We welcome the additional business.' "

Teamsters say MotorCity Casino has locked out workers

10.17.07

Associated Press at Forbes.com
MotorCity Casino in Detroit Shuts Down

By COREY WILLIAMS

DETROIT - Lawyers for Detroit's three casinos convinced a judge last month to stop the state from temporarily closing the gambling halls in the event of a partial government shutdown.

Faced Wednesday with a possible work stoppage by more than 1,000 unionized employees, one of the three decided to close itself.

Security guards at MotorCity Casino, just north of downtown, asked gamblers already inside to leave and turned away dozens of others at the doors prior to a noon contract extension deadline.

Union workers were asked to leave or were denied entry into the casino, said Teamsters spokesman Leon Cooper.

Job security, benefits, health insurance and wage increases are the main issues in the contract negotiations between the Detroit casinos and their unions, which include the Teamsters, the United Auto Workers and others. Of immediate concern to the city and state is the loss of nearly $170,000 daily in wagering taxes from MotorCity alone.

MotorCity, Greektown and MGM Grand reported combined revenue of $1.3 billion last year. The state received nearly $158 million in taxes on that money. Detroit received more than $155 million.

Detroit chief financial officer Roger Short said in a statement that the city receives about $450,000 daily in tax revenue from all three casinos.

City and state officials are optimistic that any strike or work stoppage would be short.

"It's between the casinos and unions," said Damian Kassab, chairman of the Michigan Gaming Control Board, which regulates the Detroit casinos. "It's not a good thing and very similar to what we were facing with the state budget crisis. This could be a substantial loss of revenue."

Gov. Jennifer Granholm had threatened to shut down state government if legislators failed to agree on a new budget. The Gaming Control Board at the time argued that state regulators would be laid off, causing auditing and safety concerns in the casinos.

That was resolved when a last-minute budget was reached Oct. 1.

In trying to reach a deal with its unionized workers, MotorCity and labor negotiators agreed Tuesday night to a 12-hour contract extension to 11:59 a.m. Wednesday. The unions already had extended the MGM Grand and Greektown casinos' contracts on a day-to-day basis.

Nothing in the state gaming act prohibits Detroit's casinos from operating during a strike or other work stoppage. Properly licensed supervisory personnel could run the floors, Kassab said.

"The one issue we would have from a regulatory perspective is separation of duties," he said. "We would be concerned that the people normally overseeing the operations may be potentially performing too many of those operations."

MotorCity spokeswoman Jennifer Kulczycki said the casino had no comment on the shutdown.

But it comes at an awkward time for the gambling establishment. MotorCity is expected to open its $275 million, 17-story luxury hotel next month. The casino opened an expanded gambling floor earlier this year.

MGM Grand Detroit opened its hotel and casino complex Oct. 2. Greektown has plans to do same next year.

MotorCity and MGM Grand opened temporary facilities in 1999 after Michigan voters approved casino gambling in Detroit. Greektown opened a year later.

In 2005, Marian Ilitch, wife of Detroit Red Wings' and Tigers' owner Mike Ilitch, bought out her partners and became sole owner of MotorCity Casino.

Forbes.com

Gambling patrons and tour buses are being turned away from MotorCity Casino

Detroit Free Press

10.17.07

MotorCity Casino closes as strike deadline passes

UPDATED AT 11:40 A.M.: Gambling patrons and tour buses are being turned away from MotorCity Casino as the casino prepares to shut down in advance of a noon strike deadline.

Negotiators for MotorCity Casino and the Detroit Casino Council, made up of members of the United Auto Workers, Hotel Employees and Restaurant Employees union, and International Union of Operating Engineers, Teamsters and Carpenters, which represents approximately 6,100 employees at the city's three casinos, agreed last night to extend the existing contract until noon.

Patrons and employees were being asked late this morning to leave the premises of the casino near the Lodge Freeway. No picket signs were visible as of late this morning. WWJ-AM (950) was reporting that patrons and tour buses were being diverted to the city's two other casinos.

http://www.freep.com/apps/pbcs.dll/article?AID=200771017031

MotorCity Casino locks doors and turns away customers

10.17.07

MotorCity turns away gamblers because of labor dispute

Joel J. Smith and Nathan Hurst / The Detroit News

DETROIT -- Gamblers were being turned away from the MotorCity Casino this morning because of a labor dispute with employees.

The casino was bargaining with its five unions this morning -- as part of a 12-hour contract extension -- when MotorCity suddenly locked its doors and prevented customers from entering its parking structure. The employees' contract expired at 11:59 p.m. Tuesday.

A recorded message on the casino's main telephone line said: "The MotorCity Casino is currently closed due to the labor action taken by the Detroit Casino Council. We apologize for the inconvenience."

The casino allowed customers already on the gaming floor to finish their bets and then asked them to leave the premises.

Guards outside the gaming facility were overheard giving customers directions to MGM Grand Detroit Casino.

Detroit Police are on the site to shoo people away if necessary.

You can reach Joel J. Smith at (313) 222-2556 or jsmith@detnews.com

Labor grants day-to-day extension for Greektown, MGM Grand Detroit; negotiations focused on MotorCity Casino

10.16.07

Casino contracts extended

By Robert Ankeny

The Detroit Casino Council, five unions representing more than 6,000 workers at the city’s three casinos, announced Tuesday afternoon it has agreed to day-to-day contract extensions at Greektown Casino L.L.C. and MGM Grand Detroit L.L.C.

Meanwhile, contract talks are focusing on bargaining with MotorCity Casino, owned by Marian Ilitch’s Detroit Entertainment L.L.C., the union announcement said.

“We are at the bargaining table and we will continue our efforts to reach a new contract that is fair to workers and keeps the gaming industry moving forward in Detroit,” United Auto Workers Vice President Jimmy Settles, director of the union’s technical, office and professional department, said in a statement.

The four-year contract with the casinos is set to expire at 11:59 p.m. Tuesday.

Other unions in the council are the Hotel Employees and Restaurant Employees, the Operating Engineers, International Brotherhood of Teamsters and the Carpenters union.

Labor agrees to temporary extension of casino contracts set to expire tonite at 11:59 p.m.

10.16.07

Casinos, unions agree to contract extension

Detroit's three casinos and their five unions have agreed to extend the contract which was set to expire at 11:59 p.m. tonight while bargaining over a new labor deal continues.

The unions have also said they would give the gambling halls 72 hours notice if they decide to end the extension and strike.

Bargaining continues today at the Pontchartrain Hotel. People familiar with the situation say stumbling blocks include wages and health care benefits.

A union official said Monday that MotorCity Casino has been targeted as the focus of the talks. The contract also covers workers at MGM Grand Detroit and Greektown.

The five unions banded together at the beginning of the decade to form the Detroit Casino Council.

MGM Grand confirmed the extension.

"We are committed to reaching a mutually agreeable contract for our team members and will continue to bargain in good faith with the DCC to do so," said George Boyer, president and COO of the casino.

During contract negotiations in 2003, casino workers won a number of wage and health-care guarantees. That agreement secured wage increases of at least $4,000 per worker over the life of the contract, and $2,000 lump-sum seniority bonuses for some workers.

That four-year contract also lowered health and dental insurance costs for union members.

The Detroit Casino Council represents the United Auto Workers, the Hotel Employees and Restaurant Employees International Union, and, Teamsters and Carpenters unions.

http://www.detnews.com/apps/pbcs.dll/artikkel?Dato=20071016&Kategori=UPDATE&Lopenr=710160433&Ref=AR

Labor to target Ilitch-owned MotorCity Casino just weeks before hotel Grand Opening

10.15.07

Casino unions to focus MotorCity in contract talks

By COREY WILLIAMS
ASSOCIATED PRESS

A coalition of labor unions has targeted MotorCity Casino as the focus of contract talks this week.

The labor agreement covering workers at MotorCity and Detroit’s other two casinos is set to expire at 11:59 p.m. Tuesday.

"Our focus in the next few days will be to reach an agreement that recognizes what workers have contributed, and keeps the industry moving forward," United Auto Workers Vice President Jimmy Settles said Monday in a news release.

"The dealers, drivers, housekeepers, wait staff, building operators and other workers who make up the Detroit Casino Council have been key to the success of the gaming industry in our city since the very beginning," Settles said.

The Detroit Casino Council represents the UAW, the Hotel Employees and Restaurant Employees International Union and the Operating Engineers, Teamsters and Carpenters unions.

Negotiations were continuing Monday, UAW Local 7777 financial secretary-treasurer Shimeca Jackson said.

Jackson said she could not comment on any timeline for negotiations with Greektown and MGM Grand Detroit casinos.

About 10,000 employees at all three casinos will be represented under the new contract once it is reached, Jackson said.

A spokeswoman for MotorCity said the casino could not comment on the negotiations.

The negotiations are pivotal for the casinos, which are spending $1.5 billion on new hotels and gaming expansions.

MotorCity Casino opened its expanded gaming floor earlier this year and is spending $275 million on a 17-story hotel to open later this fall.

MGM Grand Detroit opened its new, $800 million, 18-story hotel and casino complex earlier this month. Greektown Casino is spending $475 million to expand its existing facility, including $200 million for a 20-story hotel and a parking structure set to open next year.

Unions authorize strike of Detroit Casinos

10.11.07

Casino unions authorize strike

By Robert Ankeny

Labor unions representing more than 6,000 workers at Detroit’s three casinos could go on strike if agreements on new contracts are not in place by Tuesday, the date on which current pacts expire.

Talks continue between the casinos and the Detroit Casino Council that voted Wednesday to authorize a walkout if bargaining fails.

The strike threat comes as MGM Grand Detroit Casino has just launched its permanent hotel and casino complex Oct. 2. MotorCity Casino, owned by Detroit Entertainment L.L.C., is scheduled for the grand opening of its permanent complex on Nov. 1. Greektown Casino L.L.C., in the midst of hotel and parking garage construction, expects to open its permanent units next year.

The council, a coalition of five unions, is composed of the United Auto Workers, representing dealers, slot technicians, cage cashiers and money handlers; the International Brotherhood of Teamsters, representing delivery, warehouse, clerks and landscapers; the Operating Engineers, representing engineering staff; the Hotel Employees and Restaurant Employees Union, representing food and beverage, slot change and porter staff; and the Carpenters Union, representing the carpenters.