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Sad Holidays for Laid Off Workers

Posted on December 24th, 2010

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As the holidays approaches, millions of last-minute shoppers flock shopping malls to do some, you guessed it, last minute shopping. But even the holiday season is not enough to keep spirits up for the recently laid-off workers of casinos in Atlantic City. The year 2010 has seen a lot of trouble for the casino industry, and by extension, its employees. Several casinos had either declared bankruptcy or sold its assets, throwing the plight of their employees out into the wind. The most recent laying off, was done by Resorts Casino Atlantic City. The move, like most, was caused by the hardship brought about by the recession.

Resorts Casino’s present owner, Dennis Gomes is a legend in the casino industry. Gomes has had a stellar track record for turning the situation around for underperforming casinos. Employees of the casino and analysts believe that Dennis Gomes is Resorts Casino’s last and best hope at surviving the recession. But casino industry legend Dennis Gomes can only do so much. With the change of ownership from the casino, comes a change in its management. The sale caused the previous employees contracts to be rescinded. Dennis Gomes required all former employees to reapply for their previous positions but did not prohibit other aspiring employees to apply for the job. In the end, some 205 former employees of Resorts Casino were not able to get their jobs back.

These former employees will be spending a sad Christmas with their families—many of them spending time that would normally have been spent for shopping, lining up in their union halls for $25 gift cards. Among these laid off workers are Gloria Reo, David Rothman and Anh Do, all of whom would not be able to have a merry Christmas with their families. Their local union, the Local 54 of Unite-HER, conducted a charity drive for the laid off workers in order to help provide some holiday cheer. The $25 gift cards the three former employees of Resorts Casino received were part of the charity drive. Throughout the day, Gloria Reo has been holding back tears. “I have one dollar in my pocket,” she said. “That’s so degrading, after working all my life.” Even sadder, Reo spent around $300 dollars to get into character for her audition for her previous job. Gloria Reo, now 57, who worked for Resorts Casino for almost 30 years, lost the position to younger applicants. When asked about her plans for Christmas, she said “I don’t even want to celebrate,” she said. “I just want to sit in the dark and watch TV.”

Dennis Gomes was heartbroken over the unemployment caused by the sale but he maintains that he needs to make difficult decisions in order to further the cause of the casino. “It is heartbreaking to know that some of the people who were terminated by the prior management team remain out of work,” he said. “Resorts is facing the same challenges as many other companies in the region during this tough economic climate and increased competition,” Gomes said. “We need to make decisions that will benefit the property and all of its employees over the long term to regain success in the market.” Dennis Gomes acquired Resorts Casino for only $31.5 million which is only a fraction of the casino’s worth a couple of years ago. Resorts Casino is the oldest casino in Atlantic City and has been struggling against bigger casinos with better budgets since the onset of the recession.

The year has seen several dismal news for both casino operators and employees. With Christmas only a couple of days away, these people are convinced in having a sad holiday. Some former employees of Resorts Casino have been lucky enough to have landed jobs before the holidays. But others, like Reo, Do and Rothman will be receiving unemployment checks that would not even be enough to provide for their family. The three former employees of Resorts Casino are only a small part of the whole throng of laid off casino workers that will be spending a blue Christmas this year.