315 layoffs at A.C. casinos; some are seasonal

ATLANTIC CITY - Three casinos announced layoffs Thursday totaling 315 employees, although some normally work only during the summer.

The two casinos owned by Trump Entertainment Resorts announced 200 layoffs, about 80 of whom were seasonal employees. And Revel Casino Hotel said it was laying off 115 permanent workers, about 4 percent of its total workforce, due to slowing business conditions with the end of summer.

The resort continues to struggle against competition in neighboring states, falling casino revenue, and declining market share.

Robert Griffin, chief executive officer of Trump, said the cuts were necessary to help the company compete against casinos that do not have union contracts, including Revel. The Tropicana Casino Resort has stopped contributions to a pension fund, making direct payment to workers instead.

"I just can't compete with nonunion casinos in Atlantic City," Griffin said. "That is a major advantage they have, millions of dollars they don't have to spend."

Of about 115 full-time employees being laid off, about 65 worked at the Trump Taj Mahal Casino Resort and 50 at Trump Plaza Hotel & Casino on the Boardwalk.

Many of the seasonal employees worked at a Trump beach bar over the summer, and about 20 employees at the Trump Plaza buffet will be terminated as of Oct. 28, Griffin said.

A deal to sell the struggling Trump Plaza to a California company fell through this year.

"As with many Shore businesses and other casino properties post-Labor Day, Trump Taj Mahal and Trump Plaza will be experiencing a reduction in staff and have recalibrated the wages for a small percentage of our on-call and part-time personnel. Our full-time employees' pay has not been reduced. Unfortunately, we need to react to the current market situation," said Brian Cahill, spokesman for Trump Entertainment Resorts.

Revel's layoffs are the second major job reduction this year at Atlantic City's newest casino. In April, Revel cut 83 jobs.

"This was not a decision we take lightly, as we value each of our professionals and their dedication to Revel's success," said Jeffrey Hartmann, Revel's interim chief executive officer. "We thank our professionals for their hard work and wish them the best in their future endeavors."

The latest layoffs came on the same day that Atlantic City's main casino workers' union complained to state labor and political officials about Revel's use of part-time employees at levels it said are twice the city's average.

In a letter sent Thursday to state Labor Commissioner Harold Wirths, Local 54 of Unite Here said nearly 29 percent of the 3,388 workers Revel employed as of the start of August were part-timers.

The union has been battling the largely nonunion Revel over its labor policies since before it opened in 2012.

A Local 54 spokesman said the union wanted to make state officials aware of Revel's labor policies, particularly in the light of state aid that helped the struggling casino to open, including a $2.6 million grant from the Labor Department.

Revel officials declined to comment on their staffing.

"Revel owes a debt to New Jersey," union president Bob McDevitt wrote. "Without generous subsidies, Revel would not have been built. In total, Revel received promises of over $300 million in aid from New Jersey, including a $2.6 million grant from the N.J. Department of Labor."

McDevitt said, "Revel had already set a bad precedent in Atlantic City" by setting employment limits of four to five years for most customer service employees, including dealers, beverage servers, and others in close contact with customers.

The casino said it would require employees to reapply for those jobs after their limits expired to guard against their becoming complacent in their dealings with customers.

McDevitt said Revel had been ramping up its use of part-time workers since it filed for Chapter 11 bankruptcy reorganization in March, a process that was completed in May. While the city's average has remained between 12 percent and 13 percent, Revel's use of part-timers reached 29 percent in the casino's most recent filings to the state Casino Control Commission, as of Aug. 1.

Revel has said it continues to look for ways to reduce expenses and become profitable following its emergence from bankruptcy.