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\tBy John L. Smith
\n\tIt took some time, but Steve Wynn got what he wanted.<\/p>\n
\tIn overruling a District Court judge who only appeared to have Nevada statute on his side, the state Supreme Court on Thursday released its unanimous decision that the mandatory tip-pooling policy at Wynn\u2019s Strip casinos was legal. Dealers at Wynn Resorts Ltd. must share their tips with floor personnel traditionally considered supervisors.<\/p>\n
\tThe issue dates to September 2006, when CEO Wynn decided to cut in floor supervisors on a share of the dealers\u2019 tip pool. Dealers argued the change in policy drained $5 million a year from their pockets and enabled the corporation to compensate supervisors without anything coming out of its own pocket. The Supreme Court disagreed.<\/p>\n
\tWynn issued a statement Thursday that endorsed the high court\u2019s ruling and clearly expressed his considerable confidence in a legal process that went his way.<\/p>\n
\t\u201cWe are a professionally managed organization respectful and mindful of the law in all cases,\u201d Wynn said. \u201cWe review our decisions carefully before we implement any change affecting our employees.\u201d<\/p>\n
\tWynn wasn\u2019t as concise or as confident back on May 10, 2007, when he addressed a group of livid dealers who had seen their compensation decrease following the implementation of tip sharing. The management decision fueled a drive to bring in organized labor representation in the form of Transport Workers Union Local 721.<\/p>\n
\tBack then, Wynn seemed downright apologetic.<\/p>\n
\t\u201cThe reason we\u2019re here is because of tension, consternation, and frustration and anger on the part of the dealers as a result of something I personally did in September \u2014 mainly change the compensation structure of the bosses using the tip pool of the dealers,\u201d he said.<\/p>\n
\tWynn noted that he had been focused on the opening of the company\u2019s megaresort in Macau and was \u201cdistracted.\u201d<\/p>\n
\t\u201cThis is a perfect example of how someone identifies the right problem and comes up with the wrong solution,\u201d he continued, accepting full responsibility for the decision and admitting that the dealers\u2019 tip compensation had decreased.<\/p>\n
\tHe also acknowledged the negative impact on his employees.<\/p>\n
\tWynn said: \u201cI pride myself on the fact that I\u2019ve been able to stay in touch with the people who work for me better than anybody \u2014 and have a feel for them \u2026 and created a family that resulted in each of my hotels achieving really great success. I was never confused about that. As you know, I\u2019ve always known it was the people who worked for me. I took great pride in the fact that I understood that. … I\u2019ve got a 40-year history that\u2019s unblemished until September in taking care of the people that work for me with great care and consideration.\u201d<\/p>\n
\tMindful of the legalities of addressing his employees just prior to a union election, Wynn offered no promises to his disgruntled troops. He did, however, repeatedly admit he had made a mistake in crafting the mandatory tip-sharing policy.<\/p>\n
\t\u201cUnfortunately, I may have analyzed the problem, but I came to the wrong conclusion on how to deal with it,\u201d he said. \u201cPlain and simple, I missed it. I got it wrong. The effects that I thought my decision would have on the dealer pool were incorrect. More importantly, the effect that it had on you \u2014 I totally underestimated. And as a result, I lost, at least in this group, the feeling of family and happiness that has been the hallmark of my business career and, as far as I\u2019m concerned, the source of whatever success I\u2019ve had. A sad turn of events, as you make a mistake, that\u2019s what happens.\u201d<\/p>\n
\tWynn continued at length to express contrition and to implore his dealers to think before they voted to organize. But organize they did, and Wynn\u2019s hat-in-hand routine was soon replaced by his attorneys\u2019 dogged legal arguments.<\/p>\n
\tNow he has prevailed before the state Supreme Court. Surely that\u2019s cause for champagne and celebration in the corporate offices of Wynn Resorts.<\/p>\n
\tThe working people who have helped make Steve Wynn a multibillionaire, meanwhile, are left to dummy up and deal.<\/p>\n
\tJohn L. Smith\u2019s column appears Sunday, Tuesday, Wednesday and Friday. Email him at Smith@reviewjournal.com<\/a> or call 702-383-0295. Follow him on Twitter @jlnevadasmith.<\/p>\n