Referring to Icahn, McDevitt said: "Tropicana's major owner wants you to believe that the demand to take away workers' health insurance is necessary because of the financial situation at the Taj Mahal and in Atlantic City. We believe it has nothing to do with either. He has a long history of eliminating, reducing or freezing worker benefits which sometimes saddles government agencies with the burden of cleaning up the mess."
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Icahn has rejected the union criticism and said he saved the Tropicana four years ago by acquiring it in a similar fashion to how he would acquire the Taj Mahal.
Icahn, who owns the Taj Mahal's $286 million in debt, would swap that debt for ownership of the casino and invest $100 million into it. But that investment is contingent on massive government aid from Atlantic City and the state.
The company says it needs big union concessions and massive tax breaks from Atlantic City and New Jersey -- both of which already have rejected the demand. It originally sought to have Atlantic City lower its property tax assessments by nearly 80 percent, to have the state contribute $25 million in tax credits, and for union workers to give up their pension and health insurance. It would provide $2,000 stipends for workers to find their own coverage under the Affordable Care Act.
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After getting a negative reaction from Atlantic City Mayor Don Guardian and state Senate President Steve Sweeney, the company revised its financial request from the state. It is now seeking $175 million in relief through a so-called PILOT program -- payments in lieu of taxes -- and the receipt of two types of state economic grants not usually available to casinos: the Economic Redevelopment Grant and the Urban Revitalization Grant. State legislators would have to vote on letting the casinos into the program.