Las Vegas Unions Begin Negotiations with Hotel and Casino Operators Amidst Potential Strike
Las Vegas, known for its vibrant hospitality industry, is currently witnessing critical negotiations between unions representing approximately 53,000 workers and hotel and casino operators. The culinary workers union and bartenders union, which collectively represent employees at various properties including MGM Resorts International, Caesars Entertainment, and Wynn Resorts, are seeking a new five-year contract to enhance wages and benefits as the city’s tourism industry recovers from the impact of the pandemic.
The demands put forth by the unions reflect a broader trend seen across industries such as shipping, rail, and auto, where employees are advocating for better compensation due to the rising cost of living and low unemployment rates. The unions are urging the companies to prioritize fair agreements, emphasizing that a strike could occur anytime after October 6th if negotiations fail.
In August 2023, Las Vegas welcomed over 3.3 million visitors, representing a 7% decrease compared to the same period in 2019. However, average room rates experienced a significant 31% increase, reaching $158.47. These figures highlight the gradual recovery of the tourism sector in the city.
Negotiations commenced with MGM Resorts on Tuesday, followed by scheduled meetings with Caesars Entertainment on Wednesday and Wynn Resorts on Friday. The unions have proposed their most substantial wage increases to date, along with reduced workloads and room quotas for housekeepers, improved safety measures, and other essential protections for workers. Despite engaging in talks since April, little progress has been made thus far, according to Ted Pappageorge, Secretary-Treasurer for the culinary union.
The casino operators have not yet responded to requests for comments. However, they have expressed that negotiations are progressing as expected, with hopes of reaching an agreement in October. Analysts estimate that a 1% increase in wages would result in approximately $10 million in additional wage costs for MGM, potentially impacting Caesars by $40 to $60 million annually.
The five-year union contract with MGM, Caesars, Wynn, and other smaller operators expired in May 2023, with an extension granted until September 15th. On September 26th, around 95% of hospitality workers voted to authorize a strike across 22 properties on the Las Vegas Strip. Although a strike deadline has not been set, tensions remain high as negotiations continue.
Las Vegas has historically managed to avoid strikes between the culinary and bartender unions and the casino-and-hotel companies. However, the current negotiations represent a crucial juncture for all parties involved, as they strive to find common ground and ensure the well-being of the city’s workforce.
As negotiations unfold, both the unions and the operators have an opportunity to prioritize the needs of the workers while considering the economic recovery of Las Vegas. The outcome of these negotiations will have a significant impact on the future of the city’s hospitality industry and the thousands of workers who contribute to its success.