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Spain – Spanish union initiates legal action against Tenerife casino privatisation

By - 30 October 2018

The General Worker’s Union of Spain (UGT) in the Canary Islands has filed an administrative appeal in the courts in Santa Cruz in opposition of government plans to offer the three state owned casinos up for tender.

The General Secretary of the union Gustavo Santana said in a statement that the appeal calls for the paralysis of the privatisation of the casinos of Tenerife, managed by public companies that generate “millionaire benefits.”

Santana described the move by the council as “intolerable” and as an attempt to grab a resource that brings benefits for all those living on the island and “give it away” to speculators.

“The legal services of the UGT are working to stop a genuine theft of the patrimony of the citizens of this island,” said Santana, who said that the union had already appealed to the government but had not received a satisfactory response.

In a statement, the UGT condemned the Canary Coalition and the President of the Council Carlos Alonso, and strongly denounced the PSOE (The Spanish Socialist Workers’ Party) arguing that it was “shameful” that the socialist group in the council had acted “as the accomplice of the right in this matter, which puts hundreds of jobs at risk.”
Earlier this month Alonso officially presented the new combined tender for the three state owned casinos to both local and international investors during a press conference in Madrid. Tenerife’s council is putting the casinos on sale for a total of €24.9m.

Accompanied by the director of the Treasury, Juan Carlos Pérez Frías, Alonso, outlined the potential advantages to buyers which he believes are “very attractive” as they are located in three of the most popular tourist destinations on the island namely Adeje, Puerto de la Cruz and Santa Cruz. Alonso explained that the casino sell off was a way to boost tourism on the island. Potential operators have been given until November 8th to decide if they wish to take part in the process. Despite the fact that the casinos are still profitable Alonso defended the sale as he said that it was an “anomaly” that there are still state owned casinos in Spain.

However, the union has been against the move from the very start. In August in a unanimous decision, workers from the three casinos that are currently run by the council agreed to take action against the move. According to the UGT, the privatisation of gambling halls is due to interests “that have nothing to do with the general interest, and that of the workers.”

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