IUGE’s
Maurice: Culinary
Union “In Bed” With Wynn
State to Air Dealers’ Complaint on Tip
Sharing
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State Labor Commissioner Michael Tanchek is scheduled to hold hearings July 6 and 7 on a tip distribution complaint filed by Wynn Las Vegas resort dealers and then issue a far-reaching decision that will have an effect on all tip earners in Nevada. After getting bounced around at the District Court and Supreme Court levels, the Transportation Workers Union, which won the right to represent dealers at the Wynn Las Vegas and Caesars Palace in May and |
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December 2007, respectively, eventually filed the complaint that is to be heard next week. Before the
hearings get started on July 6 at noon and July 7 at 10 a.m., organized dealers plan to conduct a protest rally in front of the Grant Sawyer State Building, as a way “ ...to show the commissioner that we will not stand for any ruling that will legitimize what Steve Wynn has done and is trying to continue to do.”What Wynn did on Sept. 1, 2006 was institute a tip-sharing policy that led to the TWU’s 444-149 organizing victory a year later and a National Labor Relations Board finding of unfair labor practices at Wynn’s resort, yet it is still a policy Wynn steadfastly refuses to change or drop to this day. Under his policy, all customer tips given strictly to dealers — workers on the casino floor who actually deal the cards, spin the roulette ball and collect the bones with their dice sticks — are put in one pot and then distributed to not just the dealers themselves who earned the tip, but to casino managers, assistant casino managers and casino service team leads who may come in contact with the generous customer superficially yet they still get a significant portion of the tips, generally 15 percent but upward to 40 percent in certain cases.
The
dealers say this is wrong; the tips are
theirs and Nevada has a law — NRS 608 —
that proves their point. The law, in
part, states “It is unlawful for any
person to take all or part of any tips
or gratuities bestowed upon his
employees.” Less than two weeks after
Wynn instituted his new tip policy,
Tanchek received more than 100 “general
public” complaints, which led to an
investigation and finding that there was
“insufficient probable cause” of a
violation of state law to bring action
against Wynn and his resort. As stated
in a National Labor Relations Board
transcript, Wynn claimed he was having
difficulty finding and hiring floor men
and floor supervisors because they made
only $60,000 a year compared to dealers
earning $100,000 or more in wages and
tips, and that it made sense to share
the tips so the redistribution could
bring the floor positions up to a more
attractive salary of around $95,000 a
year.
One of the dealer’s biggest backers is
Al Maurice, himself a dealer for 38
years, who’s president of the
International Union of Gaming Employees,
which is more of an association of and
for dealers than a true labor union in
the traditional sense. “What Steve Wynn
is doing is violating NRS 608.160,” said
Maurice, a dealer at the Mirage for the
past 20 years and who worked at Wynn’s
Golden Nugget in downtown Las Vegas
before that. “A week before the policy
went into effect there were meetings
with the dealers where Wynn said what he
was going to do. Some of the dealers
filed a complaint with the National
Labor Relations Board and the board said
that Steve Wynn was found in the wrong.”
The ruling against Wynn came in a Dec.
31, 2007 decision from Administrative
Law Judge Burton Litvack who had heard
testimony July 30 to Aug. 3, 2007 from
officials of Wynn Las Vegas and the TWU
as well as two dealers, Cynthia Fields
and Tynisia Boone, who each had sought
$300,000 in damages from Wynn and his
resort for “Wynn’s ‘extreme and
outrageous’ statements and conduct”
during an October 30, 2006 meeting.
That meeting was but one of several
meetings he had with dealers where Wynn
discussed tip policy and “the threat” of
unionization. At the time of the October
30 meeting, Wynn Las Vegas employed 588
dealers. Before the NLRB decision,
Maurice and others worked to get a bill
passed at the 2007 session of the state
Legislature that was meant to help
clarify portions of the law. It made it
through the Assembly, but it was killed
in a senate committee. Looking to bypass
the Nevada legislative process that is
partially, but significantly, driven by
casino interests, Maurice and other
longtime IUGE figures formed PEST, a
committee to Prevent Employers from
Seizing Tips, which filed a ballot
initiative with the Secretary of State’s
office on Jan. 16, 2008.
The petition, among other things, sought
to make it illegal to distribute tips to
others who didn’t receive them unless
some form of tip distribution policy is
spelled out in a collective bargaining
agreement. Three weeks later, Wynn Las
Vegas resort teamed up with the Nevada
Restaurant Association, the Retail
Association of Nevada, the Nevada Motor
Transport Association, the Nevada
Manufacturers Association and the Nevada
Tavern Owner’s Association to file a
lawsuit opposing the initiative.
PEST
withdrew the petition in September 2008,
but followed it with a second initiative
– the initiative is still alive today —
that contained more specific language
that was meant to be palatable to all
unions, the Culinary Union included.
What was interesting about the first
petition is the Nevada Resort
Association refused to get involved or
take sides with the Wynn faction. “The
most important point of this lawsuit is
the fact that the Resort Association,
who is a significant force in
representing the casino industry, or any
other casino, did not take a stand or
join the plaintiffs in this lawsuit,
they remained neutral,” Maurice said.
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“It’s significant that the NRA didn’t join in because they always join any casino. The only casino listed in the list of plaintiffs is Wynn Las Vegas presently containing the problem to one man, one company.” That fact is punctuated and underlined by a memo sent by former MGM Mirage Chairman and Chief Executive Officer Terry Lanni to Mirage President Scott Sibella and Mirage Casino Manager Brian Benowitz on May 11, 2007 where Lanni took a stance opposing Wynn’s tip sharing policy. “While we have stated as much publicly... I want to make the position of MGM Mirage on this topic clear and unequivocal,” Lanni wrote. “Dealer tips are their income. The money they earn belongs to them. Our company will not implement any type of tip-sharing program at any of our resorts. This commitment extends to all our casinos and will be policy at CityCenter when it opens in 2009. Our employees who work at the tables and offer exemplary service to our casino customers are integral to the success of our company. I intend to remove any uncertainty from their minds as to how we feel on this topic.” Three weeks after Wynn filed his lawsuit against PEST, the Culinary Union jumped aboard Wynn’s anti-dealer bandwagon by joining the other plaintiffs, a fact that stumps Maurice to |
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this day. “(The Culinary) should be supporting us and not fighting us all the way,” Maurice said. “The big question we have is why are they fighting us.
There’s no reason not to support us.
Quite frankly, when they joined on with
Wynn that just blew us away.” Unlike
other casinos up and down the Las Vegas
Strip, Wynn Las Vegas has a special
10-year contract with the Culinary Union
that for unexplained reasons is
different than the others and makes
Maurice wonder.
“What’s very important is that under the
original law, 608, the Culinary Union in
the end got what it wants and that’s
what makes (their opposition) so crazy,”
he said. “If the labor commissioner
decides in favor of the dealers, it will
verify what we’ve said under the
existing law. So why not participate in
helping the people who are losing their
money to management? Not wanting to
(strengthen) the law
(as stated in the initiative) makes it
all the more crazy. It’s absurd, it
really is.
The Culinary is in bed with Steve Wynn. He’s trying to do the same thing with the cocktail waitresses and the cabana boys, so where’s the Culinary? They’ve got to be in bed with Wynn. What else can it be?” Culinary Union Local 226, along with its companion Bartenders Union Local 165 and UniteHere Local 54, have said they want no part of the July 6 and 7 dealer’s protest rally. The Culinary Union, in explaining its opposition to the IUGE’s efforts to help dealers keep their tips through the first PEST initiative, said on their Web site, “...you’d think that the IUGE would have talked to us before launching this. You’d think wrong,” and “There is no exemption for workers covered by collective bargaining agreements” and “The IUGE didn’t understand what they were doing when they wrote the initiative, so it is so badly written that it won’t work even for them.
It will upset everyone else’s tip arrangements and make for years of litigation over tips.” But Maurice says those statements “simply are not true.” “We had no reason to contact the Culinary Union because we did not suspect that a union representing tip-earners would make an alliance with Steve Wynn, who is confiscating his own worker’s tips,” Maurice wrote in response to the Culinary Union’s charges. “In the (statute) and in our initiative, it specifically states that collective bargaining agreements will supersede the statute in deciding the disposition of tips... For the Culinary Union to say our initiative provides that ‘only the employer may divide up tips’ is a lie.
Most of the points raised are lies and
distortions and subterfuge used to
confuse the membership and demean the
IUGE. What they are really doing is
trying to cover up the fact that they
allied themselves with Steve Wynn
against our petition
effort.” Maurice said if Tanchek rules
against the dealer’s complaint, it would
be “catastrophic” for the more than
100,000 tip earners in Nevada. “Anywhere
where tips are given can be affected by
his ruling,” he said. “And that’s a bad
situation for the state.”



