Trump’s Taj Mahal casino has been dealing with a court case since 2014. A decision on an appeal in the case was rendered Friday, January 16, 2015. The appeals court ruled the Atlantic City Casino was within legal rights to terminate the health insurance and pension benefits workers have been enjoying. The benefits programme was one obstacle to Carl Icahn taking over the casino.
The ruling was in favour of the parent company: Trump Entertainment Resorts. The company ended the benefits in October 2014. The benefits ended as a part of the company filing for bankruptcy. The company was unable to maintain payments to the benefits, which was a stipend to find insurance on the open market. The benefits also worked for the Federal Affordable Care Act.
Icahn acquired the casino through the bankruptcy court. It has been trying to keep the casino financially solid for more than a year. Icahn threatened to end his funding should the court rule against him. The Taj Mahal would have had to close.
Ending benefits is not an agreeable act, but job loss would harm the economy more.
David Licht, a co-chairperson for Trump Entertainment, said, “The savings that resulted from the bankruptcy court’s decision, which the Court of Appeals has now affirmed, have allowed us to keep our doors open and continue employing 2,600 employees. The decision ensures that Trump Taj Mahal will be in business for the foreseeable future.
Unite-HERE’s Local 54 appealed the ruling arguing that the judge did not have jurisdiction over whether the company would end or continue benefits. The union maintained the right sits with the National Labour Relations Board. The appeals disagreed siding with the company.
Local 54 union president, Bob McDevitt is looking for a next step to challenge the ruling, according to ABC News.