A group of workers at Atlantic City’s Revel casino staged a rally at the casino and presented a petition to management to allow a union organizing drive at the casino.
According to reports, the group of more than 100 employees blew whistles, chanted and carried union signs into the casino’s executive offices. They eventually delivered their petition to Revel CEO Scott Kreeger.
Casino officials did not comment.
Many of the workers expressed fear over a rumored sale of the property. Revel has struggled since its 2012 opening. The casino has already emerged from bankruptcy once and casino officials have said that they are considering either selling the property or a possible second bankruptcy.
Hard Rock International has been named as an interested possible buyer for the property.
That has left many casino workers wondering where they stand.
The group circulated a flier featuring nearly 70 Revel employees identified with their names, jobs and photographs, according to a report in the Press of Atlantic City. The group calls itself the Revel Union Committee. Revel employs about 3,000 people.
“Revel lied to us. About raises. About respecting us and our work. We tried to make it on our own, and look where we ended up,” the note read. “New owners are coming in. And our jobs are already at risk. We are standing together to protect ourselves.”
The effort has picked up the support of Local 54 of UNITE-HERE , Atlantic City’s largest casino workers union
“We’re ready to hit the reset button on our relationship with Revel and work together to make Revel and Atlantic City great again,” Local 54 President Bob McDevitt said in a statement. “In order to do that, the workers need to have job security and a process to join the union without fear or intimidation.”
The Revel Union Committee wants Revel to allow an organizing drive. Interested workers would sign union pledge cards. Both sides must maintain a neutral environment during the process.
If enough of the workers sign pledges, the unionizing process moves forward.
Meanwhile, New Jersey’s pension system is looking to invest in the hedge fund that owns the troubled Revel casino in Atlantic City. But by the time the deal goes through, Revel is likely to have a new owner.
The state agency that oversees New Jersey’s multi-billion-dollar employee pension funds voted late last year to invest $300 million with Chatham Asset Management—the hedge fund that owns 28 percent of Revel.
But treasury officials told the Asbury Park Press, that the transfer of funds won’t happen until later this year. By that time, Chatham hopes to have divested itself of Revel, though there is no firm timetable for the move.
State officials are probably hoping that Revel is long gone by the time the investment is made.
The 1,399-room Revel, which cost $2.4 billion to build, has been a frustrating failure for the state. New Jersey Governor Chris Christie touted the casino as a major part of rebuilding Atlantic City and used a $261.4 million state tax incentive package to help finance the stalled construction of the project.
But since opening, Revel has struggled in the shrinking Atlantic City casino market and has already filed for bankruptcy protection once. It is now expected to be sold for an estimated $200 to $300 million, well below its construction costs.
A review of the minutes for the state Investment Council—which oversees the $76 billion of public employee retirement funds—by the newspaper shows the council was divided on in a company that has a large stake in Revel.
Board members Marty Barrett and Adam Leibtag questioned Chatham’s investment in Revel, but were assured by staff from the state Treasury Department’s Investment Division that they expect Chatham to be out of Revel by the time the state provides the money to the company later this year.
“Therefore no pension fund assets were expected to be invested in that enterprise,” officials said according to the minutes.
There is no guarantee that Revel will be sold or Chatham will be divested from the property in time, officials said, according to the Press.
In a memorandum sent in November to council members, state officials said Chatham’s High Yield Master Fund has returned an average of 9 percent annually since its inception in September 2003. The state has negotiated a lower management fee and preferred returns from the New Jersey-based company, according to the Press. It is not unusual for the state to invest in high-yield hedge funds.
Still, the investment is stirring controversy.
Local 54’s McDevitt said the state is showing “unprecedented involvement” with Revel. Most of Revel’s workers are not unionized.
“I can’t think of anything that’s come out of this project that’s positive,” McDevitt said.
Local 54 has protested the investment council’s decision in a February letter sent to Robert Grady, chair of the 14-member council, McDevitt said.
Revel workers also recently appeared before the council asking that the state use the leverage of the investment to pressure Chatham to protect worker’s jobs during any potential sale of the casino.
