Carl Icahn told Fox News that buying the Trump Taj Mahal casino in Atlantic City would be a “bad investment for me, ” but he told its main union he would be willing to make the move to save 3, 000 jobs. However, he urged the union to drop the appeal of a court order canceling the union contract. Trump Entertainment resorts has offered to restore workers’ healthcare benefits for two years and contribute to a pension plan, but the union wants more.
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Icahn said he is amazed the union would reject the promise of healthcare and pension, but won’t drop its case over the dissolution of the contract. Icahn would be able to swap the $268 million of debt he owns and would invest $100 million into the casino, but for that he would require tax breaks that don’t seem likely. The union disagrees with cost cutting measures, including paid meal breaks, the right to hire subcontractors and increased room cleaning requirements for housekeepers.
“It is impossible for me to invest in the Taj Mahal while the appeal is pending, and even if you win the appeal, all you do is ensure the Taj Mahal closes. Do you really want the legacy and that of the Local 54 (the union) to be defined by closing the Taj and putting 3, 000 people out of work unnecessarily? There is no time to negotiate, and that is why the company and I have put everything on the table.”