Nevada political leaders call on private equity firms TPG and Leonard Green to protect jobs at the Palms
Nevada elected officials are calling upon the owners of the Palms Casino to guarantee that workers’ jobs will be protected during the casino’s pending ownership transition. In May, the Palms announced a sale that is likely to close within a few months.
The politicians signed letters to current private equity owners of the Palms Casino, TPG Capital and Leonard Green & Partners as well as the buyer, Red Rock Resorts. The letter noted it is standard practice in the Las Vegas gaming industry for workers to keep their jobs and their years of service to be counted when a casino is sold.
The letters can be viewed here.
Endorsers of the letter included:
- US Representative Dina Titus
- Nevada Senator Ruben Kihuen
- Nevada Senator Mark Manendo
- Nevada Senator Tick Segerblom
- Nevada Assemblymember Nelson Araujo
- Clark County Commissioner Chris Giunchigliani
The politicians asked private equity owners TPG Capital and Leonard Green to ensure that Palms employees will be able to retain their jobs with no loss in seniority or benefits and that they and their families will not be left behind as a result of this change in ownership.
The letters note several examples from in Las Vegas when workers kept their jobs and their years of service counted when their casino is sold; workers were retained without being fired or required to reapply for their jobs when Harrah’s purchased The Rio in 1998, Boyd purchased the Coast properties in 2004, Harrah’s purchased Imperial Palace in 2005, an investor group purchased The Aladdin in 2007, and private-equity firm Blackstone purchased the Cosmopolitan in 2014.
Private equity’s main advocacy organization, the American Investment Council, recently released a report highlighting that “private equity invests in every state and nearly every congressional district in our country” and how “investment has helped to support over 4.5 million jobs across the United States”.[i]
The officials request a response on whether workforce retention was part of the purchase agreement and asks: “If it was not, please let us know what you intend to do to ensure that Palms employees will be able to retain their jobs with no loss in seniority or benefits and that they and their families will not be left behind as a result of this change in ownership at a revived Palms.”