The president of NYC OTB, Greg Rayburn, told reporters there's a Tuesday deadline to strike a deal with DC37, the union representing OTB workers, in order to prevent a massive restructuring that could, in a worst case scenario, include liquidating the entire operation.
I'll update when I hear back from DC37.
Here are the three options Rayburn laid out for OTB (Plan A expires Tuesday, he says):
Plan A:
1. Maintain the 50 parlors/restaurants we will have after the group of 10/11 are closed.
2. Partner with private capital to build a new prototype similar to Woodbridge, NJ location.
3. Transfer the ADW operation handle to the consortium of track creditors and they will find gaming talent to manage it.
4. Significantly reduce overhead (roughly 400 positions).
5. Pay $7.5m over 5 years for ERI [early retirement incentives] Part A.
6. Pay severance of over $2m for employees let go that are not eligible for ERI Part A.
7. Seek reduced distributions from tracks and state.Plan B:
1. Reject all union collective bargaining agreements in the bankruptcy proceedings.
2. Reset all payroll and fringe significantly lower.
3. Keep the ADW [placing wages online or by phone] and automate its operations.
4. Seek reduced distributions from the tracks as part of a reorganization plan.Plan C:
1. Liquidate the business, shutter all parlors, all employees terminated.