Historic Labor Deal in Vegas: In a pivotal turn of events, Las Vegas hospitality unions have struck a groundbreaking deal with Caesars Entertainment, staving off a looming strike that threatened to shutter the famous Strip. This historic agreement covers 10,000 employees, marking a significant milestone in labor negotiations.
Across various industries, unions have been leveraging their collective power to demand improved compensation and benefits, capitalising on the current labor shortage. Notably, Las Vegas’ casino resort operators have been reaping record profits in the wake of a robust post-pandemic recovery in tourism.
The Culinary Workers and Bartenders Unions have hailed this tentative five-year contract as “historic” due to its compelling features. The first-year wage increases, coupled with the allocation of funds for healthcare and pensions, have set a new precedent, according to Ted Papauccessfully negotiated for language that allows them to advocate for and support non-union workers along the Strip.
In the words of Ted Pappageorge, “As a package, we think this is the best contract we’ve ever had.” While the number of visitors to Las Vegas in September was 4% lower than in the same period in 2019, a remarkable surge in room rates, exceeding 47%, indicates a strong demand for the city. Upcoming events like the Formula 1 Las Vegas Grand Prix, expected to draw thousands of tourists, underscore the city’s revival.
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As the hospitality industry grapples with labor negotiations, companies that are ill-prepared to weather a strike will face immense pressure to make substantial concessions, as noted by Erik Gordon, a business professor at the University of Michigan. For workers like Daniel Busby, a 33-year-old fry cook at the Paris Las Vegas Hotel and Casino operated by Caesars, the prolonged negotiation process may have felt exasperating. However, the outcome is a step toward enhanced living conditions.
Negotiations with other casino operators, namely MGM Resorts International and Wynn Resorts, remain ongoing, with the looming threat of a strike deadline approaching this Friday. Should these talks fail, the ramifications would extend to nine casino resorts and affect approximately 25,000 employees, the majority of whom work for MGM.
MGM has expressed optimism about reaching an agreement with the unions, with the potential for the most significant pay increase in its history. On the other hand, Wynn Resorts is scheduled for its next round of negotiations with the unions on Thursday.
In the backdrop of these negotiations, financial analysts estimate that even a 1% increase in wages could translate to significant additional labor costs for casino operators, such as Caesars and MGM. The Culinary and Bartenders unions collectively represent around 53,000 workers based in Las Vegas. While Caesars and MGM shares saw a positive uptick of 1%, Wynn Resorts observed a modest dip of 0.3%.
Our Reader’s Queries
What is the union deal with MGM?
Casino workers have reason to celebrate as the newly-ratified contract with MGM offers them the largest pay increase ever negotiated. The good news doesn’t stop there, as the contract also ensures that health care costs will not increase, workload reductions will be implemented, and job protections will be put in place. Additionally, the contract includes first-ever technology contract language and retirement increases, among other benefits. This is a significant win for the union and its members.
What was the strike averted in Las Vegas?
The Las Vegas Strip was saved from a potential strike that could have caused major damage thanks to successful negotiations between Caesars Entertainment, MGM Resorts, and Wynn Resorts with the Culinary and Bartenders Unions. This is a significant win for a city that thrives on partying and entertainment.
What is the union deal with Caesars?
According to Pappageorge, the union has secured a significant pay increase of 32% for its members over a period of five years. The workers will receive a 10% raise in the first year of their new contract, resulting in a total payout of approximately $2 billion from the casino companies by the end of the contract. This is a major victory for the union and its members.
What is the MGM Culinary Union contract?
Over the course of a five-year contract, the Culinary Union secured a whopping $2 billion in compensation for workers at MGM Resorts, Caesars Entertainment, and Wynn Resorts casino properties. This impressive sum will remain in Las Vegas and have a positive impact on every community and neighborhood.