US hospitality workers’ union Unite Here has pledged to fight any wave of redundancies that may result from the merger of Eldorado Resorts and Caesars Entertainment.
In particular the union was concerned with Eldorado’s announcement that it had identified synergies of $500m in the first year following the deal’s closing.
“Eldorado announced cost-savings of $500m in the first year of the combined company,” Unite Here president Donald Taylor said. “Where are they going to cut?
“We will not stand by idly if the proposed Caesars-Eldorado transaction will lead to significant job losses, worse wages and benefits for our members, and lower state gaming tax receipts in the many communities where members we represent work and live.
“Casinos operating under privileged licenses are meant to create significant benefits for host communities, including family-sustaining jobs and local government funding based on gaming taxes,” Taylor added.
The deal, announced earlier this week, will see Eldorado acquire all outstanding shares in Caesars, for a total consideration of $17.3bn, broken into cash and common shares. Eldorado is to raise $7.2bn in debt financing through loans and notes to fund the deal.
The union represents around 25,000 workers at Caesars and Eldorado properties, who Taylor said had been “excited to help the company reinvest and rebuild as it recovers from the disastrous leveraged buyout led by Apollo and TPG”.
“We will support changes at Caesars that preserve the company’s long-term financial health and provide a sustainable path to good jobs in vibrant gaming markets across the country,” he added.