It is official the Stardust Casino and Resort in
Las Vegas will be closing on November 1 of this year. The early warning was
given due to the requirements imposed by the 1989 WARN Act, which states that
employers are required to give at least sixty days notice of a large-scale
layoff. However, Boyd Gaming (who owns the Stardust Casino) had actually made
the closing "unofficially" known earlier this year and went above and beyond the
legal requirements governing the upcoming layoffs. Unlike many other casinos who
have abruptly gone under - leaving their employees stranded without jobs or
severance packages - Boyd Gaming is being praised for "making good by their
employees".
The closing date of the casino was officially made
known through memo signed by CEO, Bill Boyd, in which all of the employees were
commended for making the Stardust Resort one of the best gambling properties in
Las Vegas for forty-eight years. Boyd said the decision to close down shop was a
very difficult one to make, but that it would benefit the company and the
gambling industry as a whole in the long run. With over 1,600 employees seeking
jobs elsewhere, the closing of the Stardust is the largest layoff of a Strip
casino in over a decade.
With the news first being announced in January of
this year, the closing process has been an extraordinarily smooth transition
compared to other casino shutdowns. In fact, industry professionals have nothing
but good things to say about how Boyd Gaming has handled things, citing that it
will serve as the model for imminent company consolidations and new properties.
The Chief Human Resources Director of Wynn Resorts, Arte Nathan, praised Boyd
for its well-planned model, referring to past layoffs in which casino operators
did the best they could to help employees, but often fell short on keeping good
employee relations, which was precisely the aim of Boyd Gaming.
Not only was Boyd successful at transferring a
large number of employees to some of their other gaming properties, including
the Coast Casinos chain, they implemented a training program to help employees
acquire necessary skills for new positions elsewhere. And of those employees who
did not take transfers and were willing to stay with Stardust until the very
last day, they were given severance packages ranging from $1,000 to $10,000.
Doing so not only insured a good relationship with their workers, but also kept
Stardust from abruptly having no choice but to close, which has been a sacrifice
for Boyd - but a sacrifice that will not go unnoticed.
Boyd was originally planning to shut down at the
very end of the year to make room for their proposed Echelon Place (a community
of hotel resorts and convention space), but had to up the date just a bit due to
employees leaving early - most of which Boyd was willingly relocating to other
properties for the employees benefit. The severance packages and overall good
will and treatment Boyd Gaming has bestowed on their employees has made the
shutdown of the Stardust Casino ironically not seem like a "shutdown" at all.