A pending labor strike of casino workers in Atlantic City could cost local gambling properties as much as $1 million in damages each.
According to the Labor union Unite Here Local 54, Caesars Entertainment and MGM would lose out on earnings should the strike take place as expected.
Members of this union provide services to Atlantic City casinos in the line of cleaning. These include Caesars, Harrah’s and Tropicana Casinos, all owned by Caesars Entertainment.
Workers at the five affected casinos all voted overwhelmingly in favor of striking.
The strike is expected to cause major disruption in casino operations. Customer service is expected to decrease, along with hotel occupancy. Food and beverage services will also be affected.
The timing of the strike – scheduled for July 1st – is not coincidental. Independence Day vacation (July 4th) usually sees higher occupancy at casinos and hotels, and a strike will have a greater impact on operations.
Atlantic City properties contribute significantly (over 15%) to Caesars’ earnings, and a loss of $1 million per day will make a major impact on the casino group.
The last strike by Unite Here was recorded in 2004, and the industry is keen to avoid reaching another one.
