In a 4-3 vote, the Louisiana Senate Judiciary Committee on May 12 blocked Senate Bill 236, which would have allowed Harrah’s New Orleans casino to eliminate 400 jobs through attrition. Also, the seven committee members, including two from New Orleans, suspended the bill indefinitely.
Under bill sponsor state Senator Ed Murray of New Orleans’ legislation, Harrah’s could have used attrition to lower its workforce to 2,000 employees, and after April 1, 2016, appeal to the state Gaming Control Board instead of the legislature if it wanted to make additional cuts.
The downtown casino has frequently asked lawmakers to consider changing the arrangement it made with the state in 2001, when Harrah’s emerged from its second bankruptcy, requiring it to maintain a workforce of at least 2,400 employees during each pay cycle. Harrah’s officials thought they had a chance of success this year since last month New Orleans imposed a citywide smoking ban that Harrah’s officials and committee members agreed would impact the casino’s numbers.
Harrah’s Senior Vice President David Satz said, “We don’t know exactly what will happen yet, but what we do know is where a smoking ban in a casino has been imposed, it leads to a double-digit decline. What we’re trying to do is create a more right-sized business that deals with changing times.”
Committee member state Senator George Tarver stated he opposed the smoking ban and believed it would hurt Harrah’s business. Murray added, “I do believe because of the no-smoking ordinance, the state will lose revenue from lots of places.”
Mayor Mitch Landrieu’s government liaison, Suchitra Satpathi, told the committee cutting 400 jobs would likely be just the beginning. Satpathi noted documents showed Harrah’s had said the ideal-sized workforce would be 1,500-1,800 employees. “By their own admission, if this is not about saving money and this is not about profit, what exactly is this for?” Satpathi asked.
State Senator Karen Carter Peterson of New Orleans objected to the way the bill had been handled. She pushed for more discussions among city leaders and the public before Harrah’s would be allowed to have more control over its own payroll.
