Michael Mishak of the Las Vegas Sun wrote an interesting article on Kansas industrialist Phil Ruffin. Ruffin purchased the New Frontier casino nine years ago for $165 million. At the time of the purchase, the Las Vegas property was in the midst of an ugly labor dispute. Now Ruffin is selling the property for $1.2 billion dollars, making this the most expensive land sale in the history of Las Vegas. It will also put close to 900 employees out of work.
Companies typically offer severance packages to employees whom have been impacted by a buyout or wholesale purchase. And the assumption would be that Ruffin, having pocketed a large chunk of the $1.2 billion dollar sale, would offer some type of severance to his 900 employees.
Well, Ruffin has a different idea. As far as Ruffin is concerned, his organization has fulfilled the terms of the union contract, which does not include a severance clause. But at the heart of the matter is whether or not he has a moral obligation to take care of these employees.
It seems like everyone from casino moguls to business executives to academics are offering their perspectives on how Ruffin should spend his money. Well, it is my turn to offer my two-cents on this matter.
Ruffin is clearly a man of means. There are many reasons why the New Frontier was sold for $1.2 billion. It was a property that was built on the efforts and dreams of a group of loyal employees. These loyal employees are asking Ruffin to reward them for all of their hard work.
It is my firm belief that Ruffin has a duty to offer severance packages to his employees because it is the right thing to do.
