Merry Christmas Oaks Club Workers! Healthcare Costs Soar, Families Threatened

Workers Decry Wealth Transference at Oaks Club

Healthcare Charges Up 25% for Minimum Wage Workers

While Oaks President Takes Home $1.6 Million Salary

It appears that children of workers at the Oaks Club will have to go without Christmas presents this year.  That's because the owner of the card room, John Tibbetts, has jacked up by 25% the health insurance rates on his employees, many of whom earn the minimum wage and can't afford the rise says UNITE HERE local 2850, the workers' union representative.  The health care increase, an existential threat to non-management employees' families, drove approximately 40 workers to a protest march in front of the San Pablo Avenue card room on December 14th, where they entered the club to present the owner with the Worst Boss of the Year award for 2017.  Managers at the gambling outfit refused to take the award for Mr Tibbetts but they did threaten to call the police on the workers and Council member Scott Donahue who was witness.

About 40 workers and at least two City Council members
joined the picket line at Oaks Club on the 14th.
Councilman Donahue (center) was threatened with arrest
by managers.

The Oaks Club has not increased its contribution to its workers' health care since 2011 workers say and the recent 25% increase means workers now must pay more than $500 per month for family coverage.
The Oaks Club for its part earned $27 million in gross gaming revenue last year and John Tibbetts himself took home $1,662,784 in personal yearly salary alone, according to the City of Emeryville.  Profit taking is not included in that sum it was noted and so Mr Tibbetts likely took home considerably more than that amount.

The workers are demanding affordable health coverage in their new union contract.  “I make minimum wage. There’s no way I can afford to pay $500 a month for health care for me and my kids,” said Ricardo Vasquez.  “Our boss says we can just go on Obamacare—but Trump and Congress are trying to take away the subsidies we depend on. So, what are we supposed to do?” 

UNITE HERE local 2850 President Wei-Ling Huber agreed,  “Here in the Bay Area, we’re not going to let the most vulnerable people be denied life-saving health care. We need employers to step up and do their part. A multi-million dollar card club can afford to do that. A minimum-wage worker can’t.”

For its part, other than threatening to arrest the workers and Councilman Donahue, the Oaks Club management appears to be standing by the boss; manager Peter Schnieder told the Tattler, "I'm surprised Mr Tibbetts would qualify for that [worst boss] award.  I think he's a fair and thoughtful employer."

The 25% healthcare cost was increased "overnight" creating crisis in workers' families said UNITE HERE and the Oaks Club has offered no commitment to keeping the health insurance "even remotely affordable in the coming years."

Mr Tibbetts could not be reached for comment.

Oaks Club President John Tibbetts was
awarded this 'Worst Boss of 2017' trophy.
His managers refused to accept it but instead
threatened to call the police.

Workers Picket Oaks Card Room: No Contract, Low Wages, Unaffordable Healthcare

Workers assembled in front of the Oaks Club card room Wednesday to agitate for a contract that would increase wages and lower employee health care costs.  Unite Here 2850 organizers, a service workers union, noted the Oaks Club has not offered a contract to employees for several years and employees have to pay an ever escalating contribution for health insurance, now pegged at $533 per month for family coverage.  The protest drew some 75 picketers including Emeryville's newest Council members Dianne Martinez and Scott Donahue who addressed the workers via the PA system, assuring the throng the City Council supports them and that the Council will deliver a city-wide minimum wage soon.  Protesters told the Tattler dishwashers at the Oaks Club make only $11.17 per hour. 

The Oaks Club has been in hot water with the law recently.  The card room, in business since the 1890's, has recently been the site of  FBI stings for loan sharking and money laundering.  
Even though the gambling establishment has famously attracted a criminal element to Emeryville, the Oaks has for years paid very little by way of taxes to the City.  In a move to rectify that, in 1997, Emeryville voters overwhelmingly passed Measure B which increased the gross receipts tax on the Oaks Club to 9% from 6.5 %.  The increase however still left the Oaks with a lower municipal tax than any other card room in the Bay Area (which charge up to 13%).  Measure B was hotly contested and the owner of the Oaks Club, John Tibbetts told voters before the election, the proposed card room tax increase would likely drive him out of business, forcing him to fire all his employees and close down his 100 year Emeryville family run business.  The tax increase for the Oaks passed by 63% of Emeryville voters needing only at least 50%.

Campaign Donation: Quid Pro Quo?
The current labor strife has been brewing for several months and Council members Martinez and Donahue interceded on behalf of the workers recently in a meeting between Oaks Club managers and workers the two new Council members report.  Councilman Donahue noted a manager at that meeting asked incredulously and overtly why he and Ms Martinez were siding with the workers since Oaks Club owner John Tibbetts had donated money to the two Council member's election campaigns in November.