Westspiel workers battle to retain their positions.
The employees of the four casinos in North Rhine-Westphalia are against the proposed privatization of the state-owned Westspiel GmbH. The main concern is potential job losses, but they also argue about the importance of player protection. However, the government seems determined on their plan. Here's a summary of the current situation.
More hours, no job security
It has been clear since last May that the state government of North Rhine-Westphalia intends to privatize the state-owned Westspiel GmbH along with its four land-based casinos (Aachen, Dortmund (Hohensyburg), Duisburg, and Bad Oeynhausen). A bill to that effect has been on the table since September 2018, meaning a new casino law could be in force by the end of 2020. There's a search for a single license holder for the four casinos, while two other locations can be chosen by the investor.
Around 1,000 employees are impacted by this, including dealers, cashiers, technicians, service staff, and administrative employees. They are now fighting against the sale of the company and for their jobs. Besides the fear of losing their employment, the employee protection issue is another argument. This might not be taken seriously enough in private casinos, they claim. Furthermore, the demand for a long-term job guarantee has been met with refusal.
"I don't think we're being considered at all," said employee representative Michael Jütte to representatives of the SPD parliamentary group last Tuesday (October 8). Jens Hashagen, head of the general works council at Dortmund's Hohensyburg casino, also expressed his frustration, stating, "there are no plans to support us in any way."
The primary reason for their discontent is the government's refusal to offer a long-term job guarantee. Instead, management is now seeking two and a half hours of overtime per week and a waiver of the regular dismissal protection. Additionally, no pay raises have been given since 2015.
According to the governing officials, NRW Finance Minister Lutz Lienenkämper is only trying to address employee concerns during the sales process. However, the works council strongly disagrees. Hashagen emphasizes that the law firm of the responsible NRW bank has only promised the employees protection from dismissal for two years. Furthermore, this is only on the condition that "we're willing to compromise on the current terms."
Given the current state of affairs, the head of the works council isn't surprised that there's a high sickness rate of over 10% among the employees: "It seems that NRW Bank and the state government only care about the proceeds from the sale, and we're just an inconvenience," the spokesperson stated to the Westdeutsche Allgemeine Zeitung (WAZ).
Privatization unnecessary?
The NRW state government first talked about their plans to privatize the Westspiel casinos in May 2018. The Budget and Finance Committee claimed the move was necessary because of a constant decline in turnover figures. Back then, the targeted business figures were not met in 2016, even with a gross gaming revenue of 80.4 million euros. The company was still reported a loss of 2.9 million euros. In defense of their decision, Lienenkämper said the Westspiel company should be sold "in its entirety" since it's "loss-making and disastrously managed."
However, the company's works council strongly disagrees. They argue there was no annual report for 2017 when these statements were made. According to the latest report, the casinos' revenues have significantly increased in recent years, making privatization "unnecessary." In a conversation with the SPD delegation, employee representative Jütte presented these latest figures.
Based on these numbers, gross gaming revenue rose from 79.6 million euros in 2015 to 92.3 million euros last year. Jütte advised against "weakening the fundamental principles of player protection" and explained why employee compensation is not set independently of turnover. Jütte found support from SPD parliamentary group leader Thomas Kutschaty, who supported the Westspiel workforce by saying:
"The state government's argument that the business is loss-making doesn't hold water anymore. From a social democratic perspective, no new law would've been necessary. The social concept for players is best provided by trained staff in secure working conditions. A private operator cannot fulfill the control function in a casino."
From an employee standpoint, Germany's Westspiel GmbH casinos are financially stable and shouldn't be privatized.
Regarding private operators, the top contender is Morton Gauselmann, an 85-year-old entrepreneur and former VDAI CEO who is also the official sports partner for the state capital since May 2018. Gauselmann, popularly known as the "Vending Machine King," affirmed interest in involvement if the legal basis in North Rhine-Westphalia (NRW) undergoes changes and tenders emerge. But the outcome is uncertain as Westspiel employees' initiatives may not gain governmental clearance.
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Source: www.onlinecasinosdeutschland.com
