JUNE 2015

Contact: Jim Baker, UNITE HERE

jbaker@unitehere.org
312-933-0230

Standard General LPs Aliante Casino draws

labor complaints
New York-based hedge fund Standard General LP is
the controlling owner of the Aliante Casino and Hotel
in North Las Vegas, Nevada.
Soo Kim, Principal and Chief Investment Officer of
Standard General LP also serves as the Chief Executive
Officer of Aliante Gaming LLC1 and ALST Casino
Holdco LLC2, the operator and owner of the Aliante
Casino.
In recent months, the Aliante Casino has drawn Unfair
Labor Practice complaints from the General Counsel
Standard General LPs Aliante Casino, North Las Vegas, NV
of the National Labor Relations Board (NLRB). In
Photo: 8 News Now (CC BY-ND 2.0)
March 2015, an NLRB Administrative Law Judge issued
a tentative decision against the casino, recommending that the NLRB rule that Aliante Casino management
violated federal labor law.3 The judges decision is under review by the NLRB.4
Aliante is one of a handful of significant non-union casinos in the Las Vegas casino market.
Given that Standard Genera principal Soo Kim is ultimately responsible for the actions of Aliante Casino
management, what steps will the hedge fund take to ensure labor peace at the property?

Administrative Law Judge recommends NLRB issue ruling that Aliante

management violated federal labor law
In his March 2015 recommended ruling to the NLRB, Administrative Law Judge Kenneth Chu tentatively found
that management of the Aliante Casino in early 2014 discriminatorily fired Maria Lourdes Cruz Sanchez, a
cashier at the casinos buffet, because of her support for unionization, writing, the Respondent [Aliante] swiftly
reacted to the heightened union activity in February and summarily discharged Cruz in an effort to forestall any
union foothold on the Aliante property.5

UNITEHERE!

The judge also tentatively found Aliante Casino General Manager Terrance Downey played an instrumental role
in the termination, writing:
Downey was opposed to the union representing Aliante employees. Downey specifically did not like the spike in
union activity (Tr. 224).6
The timing of the discipline is also extremely suspect and more so when viewed against the backdrop of the
Respondents efforts to stave off the union organizing efforts. Upon seeing the union button worn by Cruz in the
afternoon of April 3, the Respondent swiftly suspended her the following day. Additionally, various high-ranking
Aliante officials, including Downey, Danzak, Kelly, Bethune, and Heath, involved themselves in disciplining a
low-wage cashier.7
The judge tentatively concluded that the Respondent violated Section 8(a)(3) and (1) of the [National Labor
Relations] Act on April 4, 2014 by discriminatorily issuing a suspension to Maria Lourdes Cruz Sanchez and
subsequently discriminatorily discharge (sic) Cruz on April 8, and recommended that the NLRB order Cruz to
be returned to work and paid back pay for the time she was out of work.8
In addition, the judge recommended that Aliante be ordered to cease and desist from (a) Discriminatorily
disciplining employees because of their union activities or to discourage employees from engaging in union
or other protected concerted activities and (b) In any like or related manner interfering with, restraining, or
coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act.9
The NLRB may adopt the Administrative Law Judges findings and recommendations, modify them, or set them
aside.

NLRB General Counsel issues complaint on separate Unfair Labor

Practice charge
The above case is not the only federal labor complaint pending at Standard Generals Aliante Casino.
On March 30, 2015, the General Counsel of the NLRB issued a complaint on a subsequent Unfair Labor
Practice charge.10 According to the General Counsel, Aliante Gaming suspended and fired an employee, Lourdes
Flores, in January 2015 allegedly because she formed, joined, and assisted the union and engaged in concerted
activites.11 The complaint alleges:
Respondent [Aliante] has been discriminating in regard to the hire or tenure or terms or conditions of
employment of its employees, thereby discouraging membership in a labor organization in violation of Section
8(a)(1) and (3) of the [National Labor Relations] Act.12
The complaint is headed to trial in early June 2015.

Recent unfair labor practice charges at Standard Generals Aliante Casino:

Case Number

28-CA-099193

Date Filed

2/26/13

Allegations (NLRA section cited)

8(a)(1) Coercive Actions (Surveillance, etc)
8(a)(3) Discipline
8(a)(1) Concerted Activities (Retaliation, Discharge, Discipline)
8(a)(3) Changes in Terms and Conditions of Employment
8(a)(1) Coercive Statements (Threats, Promises of Benefits, etc.)

Status

Result

Closed

Settlement.

28-CA-126480

4/11/14

8(a)(1) Concerted Activities (Retaliation, Discharge, Discipline)

8(a)(3) Discharge (Including Layoff and Refusal to Hire (not salting))

Open

ALJ Decision
recommending
that employee
be returned
to work.
Appealed to
NLRB.

28-CA-131592

6/26/14

8(a)(1) Concerted Activities (Retaliation, Discharge, Discipline)

8(a)(3) Discharge (Including Layoff and Refusal to Hire (not salting))

Closed

Settlement

28-CA-145644

2/2/15

8(a)(3) Discharge (Including Layoff and Refusal to Hire (not salting))

8(a)(1) Concerted Activities (Retaliation, Discharge, Discipline)

Open

Upcoming trial

Questions for Standard General limited partners

What steps has Standard General taken to ensure Aliante Casino management complies with the law?
What role does Standard General principal Soo Kim, as CEO of Aliante Gaming, play in overseeing the actions
of Aliante Casino management?
How will Standard General mitigate headline risk for limited partners related to the Aliante Gaming cases?

Endnotes

1 Post hearing brief by NLRB General Counsel, Case 28-CA-126480, Jan 15, 2015, p.3.
2 ALST Casino Holdco SEC Form 10K, Mar 27, 2015.
3 ALJ Decision in Case 28-CA-126480, Mar 17, 2015.
4 NLRB docket for Case 28-CA-126480, accessed May 31, 2015.
5 ALJ Decision in Case 28-CA-126480, Mar 17, 2015.
6 ALJ Decision in Case 28-CA-126480, Mar 17, 2015.
7 ALJ Decision in Case 28-CA-126480, Mar 17, 2015.
8 ALJ Decision in Case 28-CA-126480, Mar 17, 2015.
9 ALJ Decision in Case 28-CA-126480, Mar 17, 2015.
10 NLRB docket for Case 28-CA-145644, accessed May 31, 2015.
11
Complaint and Notice of Hearing, Case 28-CA-145644.
12
Complaint and Notice of Hearing, Case 28-CA-145644.