Hospitality Workers, Las Vegas Casinos Face Critical Labor Negotiations – Reuters

By Doyinsola Oladipo

NEW YORK (Reuters) – Unions representing approximately 53,000 Las Vegas workers commenced important negotiations with hotel and casino operators on Tuesday, following a vote at the end of September that authorized a city-wide strike.

The culinary workers union and bartenders union represent employees at various establishments throughout the city, including major companies like MGM Resorts, Caesars Entertainment, and Wynn Resorts. Workers are seeking a new five-year contract aimed at increasing wages and benefits as tourism in Las Vegas slowly rebounds from the lows experienced during the pandemic.

These Las Vegas unions are among the most influential in the United States, representing individuals who serve food, clean hotel rooms, and prepare meals. Their demands are reflective of broader trends in other sectors, such as shipping, rail, and automotive industries, where workers have pushed for improved compensation due to rising living costs and low unemployment rates.

"The companies have an opportunity to do the right thing and reach an agreement, but if not, there could be a strike any time after that," stated Ted Pappageorge, Secretary-Treasurer of the culinary union, indicating that a strike may occur after October 6th.

In August 2023, over 3.3 million tourists visited Las Vegas, marking a 7% decline from the same month in 2019, prior to the pandemic. Meanwhile, average room rates surged to $158.47, reflecting a 31% increase compared to the same period in 2019.

The unions met with MGM Resorts on Tuesday and are scheduled to hold discussions with Caesars on Wednesday and Wynn on Friday. Pappageorge noted that they have proposed historically high wage increases, alongside reduced workloads and room quotas for housekeepers, as well as enhanced safety measures for workers.

He emphasized that negotiations had been ongoing since April, but progress has been minimal.

A spokesperson for Wynn Resorts confirmed their commitment to reaching an agreement that provides competitive wages and benefits for their employees. MGM and Caesars did not provide immediate comments regarding the negotiations.

The unions’ previous five-year contract with MGM, Caesars, Wynn, and other smaller operators concluded in May 2023, with a temporary extension until September 15. Approximately 95% of hospitality workers voted on September 26 to authorize a strike across 22 properties along the Las Vegas Strip.

No strike deadline has been established yet, as stated by a union spokesperson. In recent years, the culinary and bartender unions, along with the casino and hotel operators, have managed to avert strikes.

Casino operators indicated during meetings that they felt prepared to negotiate and expected to reach a deal by October, according to a Truist equity analyst.

Furthermore, it was noted that each 1% wage increase would amount to roughly $10 million in added wage costs for MGM. Estimated wage increases could result in a financial impact of $40 to $60 million annually for Caesars and potentially double that for MGM.

MGM employs around 22,000 union-represented workers, while Caesars has about 10,000.