The Service Employees International Union in Texas filed for bankruptcy protection over the weekend, three months after a jury in Harris County hit it with a $5.3 million judgment.
Jurors in the 9-year-old case determined the union’s aggressive organizing campaign maligned Professional Janitorial Service, a commercial cleaning company.
The Texas branch of the nation’s second-largest labor union filed the bankruptcy petition Saturday in federal court in Corpus Christi. The union also filed notice with the Harris County court hearing the case that the bankruptcy petition will prevent the janitorial company from taking possession of property belonging to the union.
Since the jury’s decision in September, damages in the case have grown to $7.8 million when $2.5 million of interest was added.
The owner of the Trump Taj Mahal has double downed on accusations that the leader of the casino workers’ union was the driver behind the upcoming October closure in a statement that said UNITE HERE Local 54 stands to gain from the use of a union-run healthcare plan and its president used “misleading propaganda” to try to force management to adopt it.
“Bob McDevitt and the Taj bargaining committee have no one to blame but themselves for this sad outcome,” said Tony Rodio, president and CEO of Tropicana Entertainment Inc., which manages the Atlantic City casino on behalf of Icahn Enterprises, on Monday. “If McDevitt cared even one iota about the future of the employees he would have allowed them to vote on the proposal we offered five weeks ago based on his recommendations, which we believe could have saved the Taj. But in the end he blindsided us and the employees because closing the Taj served his personal purposes.”
The union previously told the Philadelphia Business Journal the last time the two sides came to the table to negotiate was in late June, just before the round-the clock strike began on July 1.