Ameristar Casino (ASCA: 18.22 -2.98%) union workers are questioning why the East Chicago casino is investing $4.2 million on hotel renovations, when they could be investing in their employees.

According to Unite Here Local 1 organizer Susan Valentine approximately 30% of the casinos 200 union employees have been reduced to part time hours and are losing health insurance.

“With the uncertainty of the economy and the Cline Avenue bridge closure, we’ve had to handle a difficult business situation,” Ameristar spokesman Reggie Dotson said.

The casino and the union continue to negotiate contracts that expired on October 31, 2009. The union is fighting for those employees to be able to keep their insurance.

The expired contract was negotiated with the casinos previous owner, Harrah’s Entertainment Inc.

Dotson said that the casino respected the employee’s right to “express their views” when workers gathered in front of the riverboat operation on Friday and that they would continue to negotiate in good faith.

“We are actively pursuing an agreement that addresses the needs of our team members while making sure we are able to continue operating our business efficiently during these very difficult times,” Dotson said.

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