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Stardust Takes Care of its Employees

Stardust employees received official word Tuesday that the closing date of
the venerable Strip casino will be Nov. 1 – an announcement driven by equal
parts courtesy by Boyd Gaming Corp. and federal law. The WARN Act, which
dates from 1989, requires large employers to give workers at least 60 days’
notice of a mass layoff. At the Stardust, more than 1,600 employees have
been forced to decide whether to retire or look for work elsewhere. But the
memo, signed by Chief Executive Bill Boyd, was hardly the stuff of legal
jargon. It was a short, bittersweet testament to the “hard work and
dedication” of the rank-and-file employees who made the Stardust “one of Las
Vegas’ great properties for nearly half a century. “While this was a very
difficult decision, we believe that it is one that will serve our company
well in the future and will ultimately make us a stronger company for our
employees and customers alike.” The Stardust, the largest Strip casino to
close in more than a decade, turned 48 in July. Incidentally, the closing
also marks the last year that Boyd’s annual employee service awards, which
will take place this month, will be hosted by the Stardust. “These are very
emotional times,” Boyd Gaming spokesman Rob Stillwell said. “The great thing
is that while we are saying goodbye to the Stardust, in many ways it is a
new beginning for our company.” The letter served more to prepare for the
final chapter of the storied casino than to deliver news. In contrast with
some of Las Vegas’ more abrupt, rumor-filled casino closures, the transition
process for the Stardust began in January, when Boyd announced it would
close the property by the end of the year to make way for Echelon Place, a
collection of resort hotels and a convention center expected to open by
mid-2010.
The closing date is earlier than the company expected because many workers
had been leaving for new jobs, making it more difficult for the Stardust to
operate, Stillwell said.

By midyear, the company had begun the process of placing workers into other
jobs. For many longtime Stardust employees, this isn’t a simple process.

Both union and nonunion workers are receiving refresher training or new job
skills for similar positions at newer properties that have different
standards. Competition for good jobs remains stiff, employment experts say.

Boyd surprised Strip competitors by offering severance packages of $1,000 to
$10,000 to the several hundred workers who intend to stay until the
property’s close and then retire.

The Culinary Union, which represents about 900 workers, began training
workers in August for jobs elsewhere.

Of the remaining 1,000 or so workers who aren’t organized, a few hundred
have been placed or have accepted jobs elsewhere, mostly with Boyd in Las
Vegas. Boyd owns the Coast Casinos chain as well as the Sam’s Town,
California, Main Street, Fremont, Eldorado and Jokers Wild casinos. The
remaining workers expect to receive severance money.

Industry observers are praising the company for practicing what some
employers simply preach – making good by their employees.

With consolidation and the emergence of giant gaming companies, employers
are putting a greater emphasis on employee relations.

With that in mind, the Stardust memo was intended as a sentimental send-off
to preserve employee goodwill.

And for good reason.

Unlike past decades, when single operators closed their properties, Boyd has
the resources to shift many workers into existing job openings. The
well-planned Stardust closing process, some say, will become a model for
other employers.

“The Stardust has really done an excellent job of setting a standard,” said
Arte Nathan, chief human resources officer for Wynn Resorts. “There wasn’t
much before that – just people who were trying to do the best they could” to
help laid-off workers.

For instance, when Steve Wynn bought and then closed the Desert Inn in 2000,
he couldn’t shift those workers into other jobs because he had sold off his
other properties. Wynn also did not offer severance payments for all
retiring rank-and-file workers.