Workers United Upstate New York, the labour union representing Vernon Downs Casino Hotel employees, has indicated the racino will be forced to close in stages by the end of this year.
Vernon Downs filed a WARN notice with the New York State Department of Labor on Tuesday to notify that it will shut down and lay off 250 employees in stages by Dec. 31, as it cannot continue operating without the increased agent commission – the portion of net win paid to casino operators as compensation for running a gaming facility.
Workers United is calling for the state to grant Vernon Downs $2 million in tax relief by reconsidering its request to restore the previous 6.4 per cent agent commission fee. Last year, New York State collected $13 million in tax revenue from Vernon Downs last year. The union stated that this $2 million vendor fee increase would allow Vernon Downs to break even, remain open and save 250 union jobs. The legislative session ends on June 8, leaving representatives with less than one month to act.
“I’ve been at Vernon for just over 13 years now, I basically worked my way up -- I started as a dishwasher, and now I’m one of the lead line cooks, the fine dining venue at Vernon,” said Dale Nicholas, a lead line cook and Union Steward at Vernon Downs. “It’s really disheartening to feel that all that work, all that success, is being thrown away. My family and I need the State to help us out so I can keep my job.”
When Vernon Downs’ annual slot revenue decreased from $40 million in 2015 to $28 million in 2017, the New York State Gaming Commission stepped in to increase its agent commission fee by 6.4 per cent of lottery net win if Vernon maintained 90 per cent of full-time equivalent employees in place in 2016. The Commission later revoked the additional fee.
Vernon Downs met the required percentage of employees until New York confirmed its first COVID case in March 2020. Many employees could not return to work with several areas of the hotel closing temporarily and the state mandating it close the buffet, further impacting profit margins.
“Last year, Vernon provided jobs for 250 community members, $13 million in tax revenue for New York State, but lost $2 million,” said Jeff Gural, President and CEO of Vernon Downs. “COVID decimated our business and without modest tax relief we can no longer operate. We all care deeply about this community and I am hopeful we can work with the Governor and Legislature to keep these jobs and Vernon as an economic engine for Oneida County.”
Workers United Rochester Regional Joint Board is a union of more than 9,500 active members and retirees in Upstate New York. It is a diverse union representing workers across a wide range of industries, including manufacturing and textile plants, airports, casinos, hotels, industrial, laundries, coffee shops and nonprofits.
(With files from Workers United Rochester Regional Joint Board)