The uncertainty that has hung over Trump Taj Mahal since the middle of 2014 is about to clear up. Last week an appeals court affirmed that officials of the Taj were permitted to end health insurance and pension benefits to its workers. That decision should clear the way for businessman Carl Icahn to take the property out of bankruptcy. He has pledged to invest millions to upgrade the Taj and return it to its former glory.
The dispute dates to October 2014 when Trump Entertainment Resorts, the parent company of the Taj, filed for bankruptcy, ending the benefits to its workers, but giving them stipends to purchase their healthcare through the federal Affordable Care Act.
Icahn was one of the largest creditors of the Taj and had agreed to take over the property out of bankruptcy but had threatened to back out of the deal if the decision to end employee benefits was overturned. Local 54 of UNITE HERE had argued that the bankruptcy judge didn’t have the authority to approve the ending of benefits, a decision the union said rested with the National Labor Relations Board. But the appeals court disagreed.
Icahn is the owner of Tropicana Entertainment, which operates casinos in Nevada, Indiana, Louisiana, Mississippi, as well as the Tropicana in Atlantic City. Longtime gaming executive Tony Rodio runs the company for Icahn and is expected to take over at the Taj. Icahn has pledged to invest millions of dollars into the resort, which has almost 2,000 rooms, expansive meeting space, and a massive casino.
Bob McDevitt, the leader of Local 54, says he’s considering his next move, which could include additional legal challenges.
“The Taj Mahal will never turn around and be successful without the full participation and involvement of its workers,” he said. “That won’t happen while people have to worry about their future.”
