Examining Richmond casino backers' promise of "good paying jobs"
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Labor union Unite Here has received $800,000 to canvass in support of the project. Photo: Ned Oliver/Axios
"Good paying jobs."
What's happening: The phrase has become a rallying cry for supporters of the city's second casino gambling referendum.
Yes, but: The compensation figures trumpeted by developers of the Richmond Grand Resort and Casino come with a few noteworthy caveats.
Zoom in: If you have a pulse and live anywhere in the metro area, you've probably seen or heard ads promising that jobs at the casino would offer an average annual compensation of $55,000.
- But did you catch that they said "annual compensation" instead of salary?
That's probably because the $55,000 figure includes things that aren't typically counted as part of a salary, like the employer's cost of providing benefits like health care and retirement, per the city's agreement with the developers.
- The figure also includes the payroll taxes all employers are required to pay on behalf of employees — a cost of doing business that almost never enters into salary discussions between employers and employees.
So what's the actual average salary?
- A spokesperson for Richmond Grand Resort and Casino, Michael Kelly, wouldn't say.
- He also declined to share other information about the calculation, including the value of benefits and the highest and lowest-paid positions included in the calculation.
Here's what we do know.
- The city's contract with the developers does include a wage floor that developers rarely mention as they pitch the project: $15 an hour including tips.
- That works out to annual pay of a little over $30,000 a year for someone working 40 hours a week.
What they're saying: Kelly stressed that a labor agreement the developer has already reached with Unite Here, a major union with a presence in casinos around the country, paves the way for wages that would be "significantly higher than at a non-union facility."
- Under the agreement, Richmond Grand has agreed not to fight a unionization campaign, per Unite Here, though neither party was willing to make the document public.
- It would be up to Richmond employees to decide whether to unionize and negotiate a contract, but unionized attendants at a similar facility in Maryland earn a minimum of $24 an hour, said Benjy Cannon, a spokesperson for Unite Here.
The other side: Casino opponents note that developers of the Richmond Grand recently donated $800,000 to a political action committee controlled by Unite Here.
- The union has used the money to hire teams of canvassers to drum up support for the project.
- "It's just suspect for me," said Allan Chipman, an outspoken opponent, noting Unite Here publicly campaigned against the project as recently as last year.
Of note: Sam Eppes, a leader with Unite Here, told Axios the union is working hand in hand with the developer to promote the project because, for now, they both want the same thing: for voters to authorize a casino.
