Caesars Makes Deal With Vegas Casino Workers, MGM and Wynn Close

Article by : Erik Gibbs Nov 9, 2023

• 
• 

Las Vegas hospitality worker unions announced on Wednesday that they have reached a “historic” tentative deal with Caesars Entertainment for a new contract covering 10,000 employees. This agreement comes just two days before a potential strike that could have disrupted operations on the Strip.

These negotiations unfold in a climate where unions across various industries are pushing for improved pay and benefits, leveraging the current labor shortage. Casino resort operators in Las Vegas have been enjoying record profits due to a consistent post-pandemic recovery in tourism.

The Culinary Workers and Bartenders Unions emphasized the significance of the tentative five-year contract, citing notable wage increases in the first year and dedicated funds for healthcare and pensions. Ted Pappageorge, Culinary Union Secretary-Treasurer, described it as “historic.”

Caesars Entertainment, the second-largest casino operator in Las Vegas by employee count, stated that the deal includes “meaningful wage increases” and aligns with their objective of expanding union jobs on the Strip.

Notably, this deal includes a reduction in the workload for housekeepers for the first time in 30 years and provisions allowing the unions to campaign and support non-union workers on the Strip.

Pappageorge expressed that, as a comprehensive package, they believe this is the best contract they’ve ever had.

Despite a 4% decrease in visits to the city in September compared to the same period in 2019, room rates have surged by over 47%. The city is gearing up for major events like the Formula 1 Las Vegas Grand Prix this month, expected to attract thousands of tourists.

While some companies may feel pressure to make concessions to avoid a strike shutdown, negotiations with casino operators MGM Resorts International and Wynn Resorts are still ongoing, with Friday’s strike deadline looming. However, both companies are meeting with union negotiators today.

A strike at MGM and Wynn would impact nine casino resorts and 25,000 workers, the majority of whom are employed by MGM. MGM anticipates reaching an agreement with the unions, touting it as the largest pay increase in the history of its contracts. Wynn Resorts, on the other hand, has not made any statement.

Analysts estimate that wage increases could result in additional labor costs of $40 million to $60 million for Caesars and double that amount for MGM, based on their respective employee figures.

The Culinary and Bartenders unions, representing approximately 53,000 workers in Vegas, continue to play a pivotal role in these negotiations.

While still uncertain about the deadline, MGM is still devoting time and resources to negotiating a final deal that will put an end to the strike. Wynn, on the other hand, has not confirmed such efforts.