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Question of the Day - 14 August 2021

Q:

Now that we're getting close to that light-at-the-end-of-the-tunnel for the pandemic, can you give us an update on how well the different casinos/resorts/companies treated their employees during the pandemic? I'm thinking along the lines of severance pay, health benefits, guarantee of jobs, etc. I will most likely use this kind of info to decide where I spend my money when I get back to Vegas.  From what I heard about TI early on, I will not be spending any time or money there. Now that we're near the end, I'm sure there's a better overall picture of how employees were treated.

A:

We got "no comment" responses from Wynn Resorts and Boyd Gaming. At least Boyd was polite about it, and we expected more from the Wynn, since they were very good to their employees.

The Culinary Union sent back four paragraphs of self-congratulations for the passage of the “right to return” law that gives displaced casino workers first dibs on their old jobs. 

Las Vegas Sands was altogether more helpful. “At the insistence of [Sheldon] Adelson, the company conducted no furloughs or layoffs,” wrote spokesman Ron Reese. “We continued paying and providing benefits for team members throughout shutdowns and slowdowns.” Reese was being too modest. Las Vegas Sands also paid the wages, including averaged tips, to workers at its restaurants that weren't actual employees of the company. We'd say that per your criteria, Venetian/Palazzo should be at or at least near the top of your list.

Deutsche Bank analyst Carlo Santarelli recently tracked workforce changes at MGM Resorts International and found that 40 percent of its nationwide employee base had been pink-slipped, of whom only a fourth or a fifth would be returning to their jobs. At present, the company has gone from 70,000 to 42,000 employees. Speaking generically, he wrote, “We would note that at present, we think Strip labor costs are down 40%-50% versus 2019 levels.” Part of the reason for that is a scenario at Caesars Entertainment that's similar to MGM Resorts'.)

Still, to give you an idea of what happened in Las Vegas, we’ve constructed the following timeline of employee relations during the Great Shutdown (culled mostly from our own coverage of the issue in Vegas News):

March 17: The Cosmopolitan of Las Vegas closes, but keeps all of its employees on payroll.

April 2: Wynn Resorts discloses that it is cutting executive pay from 30% to 100% to help underwrite 30 days of pay and benefits for its employees, later extended to 60 days.

April 4: Las Vegas Sands announces that it is paying the salaries of 1,200 indirect employees who work in restaurants that are tenants in The Venetian and Palazzo. Hourly and part-time workers are to receive a stipend.

April 7: Cirque du Soleil sacks 4,700 workers, 95 percent of its total employee base.

April 10: Boyd Gaming lays off most of its nationwide workforce, although it extends health-care benefits through June 30.

April 11: Station Casinos extends pay and benefits to furloughed workers through May 15. The Cosmopolitan of Las Vegas, meanwhile, has laid off workers, but will carry their health benefits through June 30.

April 27: Caesars Entertainment initiates an employee-assistance program for individuals facing “unusual hardships.” The program is funded by donations from Caesars execs and board members. Caesars also commits to extend pay and benefits through June 30.

May 2: MGM Resorts International is reported to have termed four hotel presidents, as the number of furloughed employees at the company reaches 63,000.

May 3: South Point lays off its employees for an “indefinite period.” Owner Michael Gaughan tells the workers they will “be better off” applying for unemployment benefits than looking to the casino for assistance. Health benefits are extended through July 31.

May 7: MGM extends health-care subsidies through August 31, but warns that six-month furloughs could become permanent. Wynn Resorts extends pay and benefits for idled workers by an additional 15 days.

May 14: Rampart Casino gives all its employees the boot via a pre-recorded phone message.

May 19: Colorado Belle in Laughlin closes for good, throwing 400 workers onto the unemployment rolls.

July 23: A dark day. Wynncore announces additional layoffs, although benefits are extended through October 31. Circus Circus owner Phil Ruffin pink-slips 252 workers, but Tropicana Las Vegas outdoes him by eliminating 620 positions.

July 28: MGM lays off most of its entertainment staff.

July 30: Las Vegas Sands extends pay and benefits an additional 90 days.

That covers the worst of it. We’ll leave it to you to decide which casinos to patronize or to avoid.

 

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Comments

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  • Doc H Aug-14-2021
    Gov pay
    Not that it's good on any level to lose a job of course though with the gov paying $600 then $300(?) weekly above the normal state unemployment payed to unemployed workers from March '20 to next month, the reality is many workers, especially lower paid workers, earned more unemployed than on the job. Health care? That's a different matter beyond 6 months of COBRA. Guessing NV state health care system or the fed health care system could have picked up the slack for many. Tough part for employees is how many let go will be picked up 1st by the casino that dumped them or in the future? I wouldn't hold my breathe. The blunt reality is any work place owes nothing to their former workers in this situation and vice versa. 

  • vegasdawn Aug-14-2021
    Private business vs. Govt.
    First of all, before the Culinary pats itself on the back, what benefits did they implement to their members who had been paying dues for years?  2nd of all, much of the problem with the unemployment has been how incompetent the governor was in got getting benefits to those who were due them.  The other horrible thing the governor did was immediately put an eviction moratorium in place with no benefit to the landlord.  He missed no checks, and also property tax bills went out on time with no extension allowed for landlords who were not being paid.  Same thing this year and both years, the property taxes were raised the maximum allowed.  Many landlords have not been able to collect rents for 17months with no end in sight. 

  • Kevin Lewis Aug-14-2021
    Pragmatic business decisions
    The casino corporations that decided to keep paying their employees realized that those employees weren't just fungible, easily replaceable work units and it was worth considerable expense to keep them around. Conversely, those that cut through their staffs with a scythe made the cold, hard decision that this was the time to economize.
    
    In neither case was it a matter of good, bad, principle, nobility, greed, generosity, or anything else. Casinos treat their employees as they do because they determine that such treatment, good or bad, works best for the bottom line. One casino treats its employees like human beings, another treats them like disposable slaves. Both are trying to maximize profits. And there's no real evidence that either approach is superior to the other in that regard.

  • Jeffrey Small Aug-14-2021
    Return to their jobs?
    Maybe this is the other side of the coin, but a friend of mine who lives in LAS informs me that the reason that many of her friends are not returning to their previous jobs is that the casino companies terminated their employment during Covid.  Now, they want the employees to return--but they are offering their old jobs back AS NEW EMPLOYEES!  Thus, the offer to return is without the salary upgrades and benefits that the employee had earned previously.  Long term employees are being treated as new hires--a bad deal for the employee--and not much of an incentive to return!

  • Raymond Jessen Aug-14-2021
    Pandemic is not over
    I do not feel we are reaching the end of the pandemic.  The discussion is moot until the pandemic is truly over.  The way to get all these people back to work is to get vaccinated and until the unvaccinated decrease wear a mask.  Delta surge is a real thing.

  • Sandra Ritter Aug-14-2021
    @ Raymond Jessen
    I totally agree with you Raymond. I haven't been to a casino since Super Bowl Sunday 2020. I thought I'd go locally for my BD end of June, but nope, not yet. I am vaccinated with Moderna, supposedly the best of the 3 vaccines. It didn't kill me nor have I had any negative affects. I am back to wearing a mask. I wish others would get vaccinated and wear masks so we can get past this horrible virus. In the meantime I'll do all I can to protect me and my family, including no casino, no Vegas, so this is a moot point.

  • Jerry Patey Aug-14-2021
    COVID 
    First of all where did you get the idea this COVID false flag is winding down. You are 100% wrong. 
    As to employees they do not have to pay rent. They get unemployment plus 300 week. Don’t forget food stamps.   They also get child credit payments. Don’t know exact figure on child credit. Why should they work. They are receiving basically welfare payments that pay them more than they make at the casino. ? Should be how gov takes care of casino employees not casinos. Welcome to Biden’s welfare state. I did not vote for him did you. Borders  are wide open. 200k in one month untested moved to USA places mainly Texas gulf coast and Fl. News refers to surge in cases in these areas. Surprise to adm. ? No it is planned. No end in sight. 

  • Sean Lowery Aug-14-2021
    Covid
    @Jerry Patey 
    
    You’re my hero.  You should start a pillow selling business with all the available cheap labor pouring in from the open borders.

  • Doc H Aug-14-2021
    Raymond/Sandra
    Raymond, agree, COVID is still out there, no doubt. In regards to mask, vaccinated, unvaccinated..please educate yourself, per CDC, vaccinated shed as much virus as unvaccinated, hence, CDC suggest EVERYONE wear a mask, vaccinated or unvaccinated. Israel, 80-90% adult population vaccinated, & how many people over there are getting sick, in hospitals, fully vaccinated. 
    
    Sandra,it appears the vast majority who got the vaccine don't have major short term side effects. Long term side effects, given this vaccine was developed not using the standard 5-10 years + to make sure it's not only effective but SAFE LONG TERM? Unknown. Any scientist, MD will tell you that, long term is UNKNOWN. For humanity, I sure hope issues don't arise but we shall see. Realize when a vaccine is labeled "experimental", well, it's obvious what that means. And the reality is many virologists are saying..this virus is not going away, will never go away, it's a SARS virus,ie same family as colds, flu, always return  

  • David Miller Aug-14-2021
    As usual...
     Today's question has spurned the know-it-all's and constant complainers to espouse their predictable finger pointing and blame. I just wonder how these people would handle things if they were casino owners.  

  • Jeff Aug-14-2021
    Vegas casinos on the social responsibility continuum
    I just heard a podcast of a patient describing getting Covid early in the pandemic.
    
    The patient was put on a respirator for 21 days. His medical bill was $300k. He worked for a security company that remotely monitored its clients businesses. The man's job was to watch those cameras from Sacramento, CA. There was no mention of a Vegas connection.
    
    He called his employer from the hospital before going on the ventilator. They told him not to worry about anything. All his bills would be paid and his job would be kept for him. They made good on both promises when he returned to work after several months.
    
    As with individuals, corporations exist on a continuum of social responsibility. Since Vegas casinos relentlessly devote extraordinary resources to determining how best to snatch as much of their customers' money as quickly as possible while providing as little as possible in the process it's likely that Vegas casinos are on the "f*ck you" end of the social responsibility continuum.