In the United States and the President for the Unite Here labor union has declared that he has ‘great concern’ regarding the proposed $8.58 billion deal that is set to see Eldorado Resorts Incorporated purchase larger rival Caesars Entertainment Corporation.
Employment anxiety:
Donald Taylor used an official press release to detail that his union currently represents approximately 25,000 people employed at casinos run by the pair in advance of warning that the planned merger could lead to a decline in tax revenues alongside ‘job cuts and other problems.’
Cuts contention:
Unite Here speaks for workers at some 22 casinos operated by Caesars Entertainment Corporation and Eldorado Resort Incorporated while Taylor stated that his unease is based on the proposed merger’s assertion that it will result in about $7.2 billion in new debt financing alongside about $500 million in first-year cuts and other ‘synergies.’ He additionally proclaimed that his group is determined to fight any moves that would result in its members losing their jobs or receiving reduced wages or benefits.
Taylor’s statement read…
“It is in this context that we approach the proposed sale of the company with great concern. Yesterday, Eldorado [Resorts Incorporated] announced cost-savings of $500 million in the first year of the combined company. Where are they going to cut? We will not stand by idly if the proposed Caesars/Eldorado transaction will lead to significant job losses, worse wages and benefits for our members and lower state gaming tax receipts in the many communities where members we represent work and live.”
Bearing a behemoth:
Announced on Monday, the proposed merger would eventually create one of the planet’s largest casino firms with 76 properties and add prestigious venues such as the giant Rio All-Suite Hotel and Casino Las Vegas, Harrah’s Resort Southern California and Caesars Atlantic City Hotel and Casino to Eldorado Resorts Incorporated’s operator portfolio.
Cooperation claim:
However, Taylor explained that his union is willing to ‘support changes’ that will ensure the long-term success of Caesars Entertainment Corporation, which has seen the value of its shares decline by some 30% over the course of the past year as it struggles with debts worth around $8.8 billion, in order to protect the futures of its members and ensure ‘vibrant gaming markets’ exist across the whole of the United States.
Read the statement from Taylor…
“Casinos operating under privileged licenses are meant to create significant benefits for host communities including family-sustaining jobs and local government funding based on gaming taxes. We will support changes at Caesars [Entertainment Corporation] that preserve the company’s long-term financial health and provide a sustainable path to good jobs in vibrant gaming markets across the country.”