This week, dealers at Wynn Las Vegas voted by a margin of almost three to one in favor of union representation.

The vote was an astounding 444 to 149 in favor of allowing the New York-based Transport Workers Union of America to unionize the casino. Though it’s being reported Steve Wynn acknowledged he erred in changing the way tips are distributed, it proved too little too late for disgruntled dealers. Now the TWU has been authorized to negotiate a collective bargaining agreement with Wynn executives.

A new policy went into effect last August when Wynn Resorts Ltd Chairman Steve Wynn told all table game workers that a portion of dealer tips would now be given to table game supervisors. Though common sense would lead those on the outside to believe supervisors were actually paid more than dealers, when averaging in tips there was a significant inequity between the two groups. While supervisors were bringing in an average of $60,000, the dealers -- who are the highest paid in Las Vegas -- were in many instances clearing $100,000 according to Wynn Las Vegas President Andrew Pascal.

The new system was implemented as a way of leveling the paying field so salaries would be more equal. Under the more equitable distribution scheme, dealers now pull in about $90,000 a year, while supervisors got a more than a 50 percent bump in income to $95,000.

And now it looks as if Wynn’s perceived solution of the problem – which gave no regard to the dealers – will be a lot more costly to the organization’s future bottom line.

Before the final vote took place Wynn attempted a major mea culpa, apologizing for the change in how dealers got paid. He asked that dealers keep negotiations on an individualized basis and not bring in the TWU.

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In the speech he gave to employees- which incidentally found its way onto the internet – he tried the best he could to stanch the flow of votes heading toward the side of unionization.

"I got it wrong, I hurt you and I apologize," Wynn said during the speech. "Sometimes people with good intentions make mistakes. What this caused was the loss of the feeling of family warmth and happiness that we had here. I got it wrong. I tried to do right for the bosses but I hurt you. I made a mistake.”

"A union comes between the employer, me, and you. It complicates our relationship. Our future as a family is based on use being together," Wynn added. 

Frank McCann Jr., who directed the organizing drive for the Transport Workers, said he is looking forward to hammering out a collective bargaining agreement with little backlash from the Company.

"We'll get information from the Wynn people and we have what the dealers would like to see happen, and we believe we can get something done quickly," McCann said.

The theory behind the change in tip distribution policy was to encourage dealers to seek promotion while mollifying disgruntled supervisors who were earning less than their perceived subordinates. While it satisfied supervisors, dealers say they are earning as much as $20,000 a year less than before the policy was changed on September 1, 2006.

Wynn Resorts owns both Wynn Las Vegas and Wynn Macau. It is currently building a second Las Vegas resort dubbed Encore for about $2.3 billion. It is scheduled to open late next year.

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