Station Casinos challenges legality of labor board proceedings

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In a bold move, Station Casinos has taken legal action against the National Labor Relations Board (NLRB), challenging the authority of the federal agency to prosecute claims against businesses like theirs. The casino operator filed a lawsuit in the U.S. District Court in Nevada, seeking to put a stop to the ongoing union-busting allegations and proceedings.

“The NLRB system has failed not only Station Casinos, but many other companies as well, threatening to deprive our team members of their right to choose whether or not to be represented by a union,” stated the company in a news release.

The legal battle stems from NLRB trial hearings that began following a complaint filed in April 2021. The NLRB alleged that Red Rock Resorts, the parent company of Station Casinos, utilized layoffs during the COVID-19 pandemic to undermine union-affiliated workers and their representation by Culinary Local 226.

This lawsuit marks the latest development in the ongoing standoff between Station Casinos, owned by Frank and Lorenzo Fertitta, and the Culinary union. The union has been attempting to negotiate contracts at various Station properties for years without success, with some properties even reversing their interest in union representation amidst allegations of unfair labor practices.

While representatives for the NLRB declined to comment, Culinary Secretary-Treasurer Ted Pappageorge responded to the lawsuit by stating that executives, including the Fertittas, are expected to testify in the NLRB proceedings.

Pappageorge expressed confidence in the outcome of the legal battle, stating, “Corporate tactics aimed at weakening worker rights are being exposed and dismantled across the country. We expect the same outcome in Station Casinos’ baseless lawsuit.”

In a June decision, the NLRB ordered Red Rock Resorts to bargain with Culinary at Red Rock casino, citing union-busting tactics employed before workers could vote on representation. The company has appealed this decision in the D.C. Court of Appeals.

The lawsuit filed on Tuesday by Station Casinos raises constitutional issues, arguing that NLRB board members and administrative law judges should be removable by the president under Article II of the Constitution. The company’s attorneys also challenge the fairness of the NLRB proceedings, questioning the agency’s role as prosecutor, judge, and jury in the same case.

Changes to administrative law hearings could have far-reaching implications for labor, according to Culinary officials, who are closely following the developments in the legal battle between Station Casinos and the NLRB.

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