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MotorCity Casino Reopens After Reaching Deal

POSTED: Wednesday, October 17, 2007
UPDATED: 7:42 am EDT October 18, 2007

MotorCity Casino and unions representing more than 2,000 workers reached a tentative contract agreement late Wednesday afternoon, about seven hours after patrons were asked to leave and the doors locked.

The Detroit Casino Council and MotorCity officials announced the tentative agreement on a new contract in a joint release Wednesday evening.

Details of the agreement were not released, but will be presented to members of the United Auto Workers, Teamsters and other casino unions represented by the council.

The deal must be ratified by union membership, UAW spokesman Roger Kerson said.

“There was a lot of screaming and yelling today. Some tears were shed. But now that we know there is a tentative agreement, and they are actually coming to the table with something we deserve. It makes us feel relieved,” said MotorCity worker Melissa Johnson.

The unions targeted MotorCity first before entering into similar talks with the city's other two casinos. The unions already had extended the MGM Grand and Greektown casinos' contracts on a day-to-day basis.

Before reaching a tentative deal, MotorCity and the unions agreed late Tuesday night to a 12-hour contract extension that expired at 11:59 a.m. Wednesday.

But about two hours before that deadline, security guards in the casino began asking patrons to leave and didn't allow others to enter.

“They just came over and asked, nicely for everyone to leave, so we did,” said a gambler.

Union employees also were surprised when they were asked to leave, Teamsters spokesman Leon Cooper said.

Patrons and employees were allowed back in shortly after 5 p.m., casino spokeswoman Jennifer Kulczycki said.

“We welcome all of our guests back. We’re here, and we’re open immediately,” said MotorCity representative Jacci Woods.

Job security, benefits, health insurance and wage increases were the main issues in the contract talks. Negotiators for the unions had been holding out for a 5 percent wage increase, while the casino had offered 3 percent, some Teamsters told The Detroit News.

The casino also wanted employees to contribute more to health care, but that will remain at current levels for the next four years, the paper reported.

Despite the temporary shutdown, UAW vice president Jimmy Settles said the unions remained at the bargaining table.

"We've reached an agreement that will benefit our members and their families, while also helping the gaming industry move forward in Detroit," he said in the joint release.

Casino chief operating officer Rhonda Cohen called the negotiations difficult, but said the contract is fair.

"We value the hard work of our associates, and look forward to working together throughout the length of this agreement to provide the best in gaming entertainment and hospitality to our loyal customers," she said.

A protracted shutdown or strike would have been costly for the city and state, which together receives nearly $170,000 per day in wagering taxes from MotorCity Casino, Michigan Gaming and Control Board spokesman Eric Bush said.

Detroit's three casinos' combined revenue last year was $1.3 billion. The state received nearly $158 million in taxes on that amount. Detroit received more than $155 million.

Detroit chief financial officer Roger Short said in a statement that the city receives about $450,000 daily in tax revenue from all three casinos.

MotorCity is expected to open its $275 million, 17-story luxury hotel next month. The casino opened an expanded gambling floor earlier this year.

MGM Grand Detroit opened its hotel and casino complex Oct. 2. Greektown has plans to do the same next year.

MotorCity and MGM Grand opened temporary facilities in 1999 after Michigan voters approved casino gambling in Detroit. Greektown opened a year later.

In 2005, Marian Ilitch, wife of Detroit Red Wings' and Tigers' owner Mike Ilitch, bought out her partners and became sole owner of MotorCity Casino.

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