Harrah’s Entertainment reached a tentative five-year agreement with the striking unions that provides wage and benefit increases averaging about 4.2 percent annually to members of the UNITE-HERE Local 54 union in Atlantic City, setting the stage for the end of a month-long walkout.

Union members are scheduled to vote Wednesday on the proposed contract that is thought to be supported by union leaders. If the members approve the offer, they could be back at work on Thursday. The proposed contract is not expected to have a material impact on the financial results of Harrah's two Atlantic City properties over the next five years.

October 2004 revenues were approximately 8 percent lower at Harrah's Atlantic City and 3.5 percent lower at the Showboat Atlantic City than in October 2003, as visitor volume declined during the walkout.

Harrah's Entertainment President and Chief Executive Officer Gary Loveman said: "The strike has been difficult for everyone involved. However, I believe this new contract and the past 20 years of mutually beneficial relationships better define our long-term relations with the union and its members far better than did the last month. I'm pleased that we were able to reach an agreement with union leaders to provide a long-term contract that offers good benefits and longer-term job security to its members."

Harrah’s employees relationship with the management has been the envy of most properties in decades past, as the company had kept to the standards set by the company’s founder Bill Harrah. Gary Loveman added: "I'm optimistic we can quickly restore our traditional strong relationships with the union members who are so important to the success of our Atlantic City properties. We look forward to welcoming them back to the Harrah's family and working together to provide our customers with the superior service and casino-entertainment experience they have come to expect from Harrah's Atlantic City and the Showboat.”

In reference to the other properties affected by the strikers during de labour stoppage, Loveman concluded "We and other Atlantic City casino operators also benefit from a contract that provides for the five years of labor peace we sought as an industry.”

© Copyright 2004 CasinoCompendium



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