The Trump Taj Mahal is saved for now
Last week, the Trump Entertainment Resorts has managed with a ruling of a judge of the bankruptcy court, to get the right to cancel the contract between the Taj Mahal in Atlantic City with the main casino workers' union in the city. The company, that had been put in place to plan and try to keep the casino open, said that the hotel-casino cannot remain viable when paying pension and expensive health care to their employees.
The arguments of casino operator
At the hearing, the counsel for the Trump Entertainment Resorts group argued before the judge of the bankruptcy court that their client had to break the contract with the Unite Here Local 54 union or the operator will simply have to close the Taj Mahal in Atlantic City. The lawyers also said that the group's financial situation is so tight that they were forced to sell slot machines, mattresses and televisions of the recently closed Trump Plaza in order to continue to operate. Robert Griffin, the CEO of Trump Entertainment Resorts, wanted to remind that the leaders of the group are currently fighting to save the 3,000 jobs of the employees of the Taj Mahal, as the market of Atlantic City is particularly challenging at the moment. For example, they want to be able to reduce costs of $14.6 million each year to continue to survive. However, with regards to the delicate situation in which he company is, the group also stated that it might have to close the establishment on November 13th.
The reaction of employees and the union
Faced with such arguments, the judge of the bankruptcy court agreed that the Trump Entertainment Resorts group is allowed to cancel the contract with the union Unite Here Local 54. The result of this is that the employees of the Taj Mahal in Atlantic City will have to give up their pension contributions and their health insurance. This ruling was obviously very poorly received by employees of the establishment and the union. They also indicated that they intend to continue to fight, but this time not in the courts but in the streets. Following this, a huge rally had been organised to block traffic in downtown Atlantic City.
100 million dollar investment
The businessman Carl Icahn owns 286 million debt of the Taj Mahal. Through an agreement with the Trump Entertainment Resorts group, he would need to invest another $100 million in the property. The businessman is now demanding significant tax benefits from the city and substantial financial aid from the state. However, both do not seem ready to meet these demands.
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