TROPICANA CONTRACT UPDATE
How does Tropicana bankruptcy affect us?
On Monday, May 5
th, the Tropicana announced that
it would file for bankruptcy. What does
this mean for Tropicana workers?
Will the Tropicana close down?
The Las Vegas Tropicana can be
closed at any time, now or during a bankruptcy proceeding. However, typically
when a company files for bankruptcy, the business is kept open and operates
normally. In addition, the Las Vegas
Tropicana has been profitable.
Will William Yung still own and operate
the Tropicana after the company files for bankruptcy?
Typically, bankruptcy of Las
Vegas hotel-casinos results in the sale of the
property to a new owner. For example,
when the Aladdin filed for bankruptcy, Planet Hollywood eventually purchased the
company and replaced the old owner and management. Due to William Yung’s mismanagement of the
company, it is hard to believe that a new owner would desire to keep him in
charge of the Tropicana.
Can management fire workers during bankruptcy?
Filing for bankruptcy does not entitle the Tropicana to fire any
current Culinary an workers.
The current contract language stating that workers cannot be terminated
without “just cause” would still apply. Workers can be laid off, but as is the
case now, any layoffs would have to be made according to the layoff and
seniority language in our contract.
What will happen to our union contract?
It’s possible that Tropicana management
could ask a bankruptcy court to reject our current contract. However, as the
Tropicana currently has the ability to terminate our contract with a seven day
notice, just as the Union can, essentially nothing changes. Until a new owner
is in place at the Tropicana, all parts of the current contract including
seniority and layoff provisions will continue to apply.
TROPICANA CONTRACT UPDATE 
