IMPERIAL PALACE Friday, August 15, 2008
Rumor has it, according to recent employee reports, that Harrah's management, without any advanced notice, has been busy the past several weeks eliminating the jobs of the oldest, long-term employees at the Imperial Palace Hotel/Casino. It seems that the more seniority, benefits, and vacation time an employee has accumulated, the more likely it is that their job will be targeted for elimination.
One employee of 27 years reported viewing a list of employees scheduled for termination. She especially noted that it listed each employee's age ahead of their name and years of service, a fact that seemed somewhat unusual to her. She also suggested that other lay-offs were being mixed in with these in order to convolute the true purpose of the lay-offs and avoid the appearance of any age discrimination impropriety.
Employees were advised to consult an attorney before signing the termination agreement presented to them, but that they would not receive their final check, severance pay, or be eligible to apply for unemployment until the papers were signed. In the past, employees with seniority were often given an option to transfer to another job or department, but such has not been the case with this round of job cuts.
In a similar, unverified instance, we were told the Cockeyed Clam seafood restaurant had been closed, all employees let go, then a month later it was reopened. None of the older personnel were called back.
Though cost cutting measures seem logical during times of economic down turns, from what we have heard, the Imperial Palace has actually proven itself to be more profitable than expected. In fact a financial expert we spoke to recently expressed an opinion that he estimated the property had sold to Harrah's for less than a third of its land value alone, adding his belief that each square foot of Imperial Palace Strip frontage was likely the most valuable land in the State of Nevada, except for the Caesar's Palace acreage across the street. Why Betty Englestad would give up the Imperial Palace at a fire-sale price while holding onto the Biloxi property seems inexplicable.
Finally, it was also reported that the Chief of Security at the IP was terminated last week, allegedly when Harrah’s management became aware of past sexual harassment charges made against him during a previous employment.