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US Unions Set To Break Into The Casino Industry

09.28.2007 | 5:46 pm | News, casinos

In a move that had been forecast by many, the US workers unions are looking to  break into the once union free casino industry.  While the process of appointing a union through to actually union contracts will take some time (if it is successful), table dealers in the US state of Connecticut have begun the process of appointing a union to represent them.  How will this change the casino industry?

While the move by the United Auto Workers union was not totally unexpected, it does blow wide open the whole casino industry to official conflicts between management and the workers (represented by their union).  The casino industry has grown in power and influence over the last decade, assisted by the massive growth in internet activity, but treatment of workers has been a sore point for many.

Operating on often thin profit margins, creating large profits with high turnover, the industry has been at pains to ensure that cost are always under control.  While there have been reports of casino operators in certain areas forcing long hours onto their workers, the industry is the centre of local employment for many areas of the US.  So what do the unions see in the casino industry?

The casino industry more than many other industries plays very heavily on the fact that it is already very heavily regulated, although the unions seem to have taken note of some employee unrest.  As we have seen in many other US industries, mistreatment of workers (or perceived mistreatment) can often result in massive compensation claims.  If it can be proved that some casino workers are being mistreated, then we may see both industrial action and compensation claims if the unions are formally appointed.

An increase in the cost base for casino operators would at some stage result in a transfer of some of the increase to customers.  If traditional casinos were to suffer, would this play into the hands of the online operators? Probably yes, which is why the casino operators will do everything they can to block union representation for their work force.

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