Detroit Casino Workers on Verge of Halting City’s Gambling Market

Article by : Erik Gibbs Oct 18, 2023

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According to the Detroit Free Press, negotiations between the labor unions representing the workers and the casinos, which include MGM Grand Detroit, MotorCity Casino Hotel and Hollywood Casino at Greektown, have failed to produce a new contract despite multiple bargaining sessions.

These employees encompass various roles, such as food and beverage, housekeeping, retail, slots and table games personnel.

The Detroit Casino Council (DCC), the labor organization that represents the workers, officially declared on Monday its intention to go on strike. In a statement, they asserted that casino management was unwilling to provide a fair contract for the employees.

The DCC also mentioned that there are significant differences between the workers and management on issues such as wages, healthcare, retirement security, technology terms and a reasonable workload for housekeepers.

Notably, the employees had previously voted overwhelmingly in favor of the strike option.

Negotiations for a new contract have been ongoing since September, involving around 3,700 casino employees and the Detroit Casino Council, which comprises various organizations, including the UAW, Teamsters Local 1038 and the Operating Engineers Local 324.

Although the last five-year contract has expired, it was extended for three additional years. Nia Winston, president of Unite Here Local 24, emphasized that the workers have faced numerous challenges since the pandemic and expressed their dissatisfaction with the employers’ proposals.

The DCC pointed out that the casinos’ gaming revenues have exceeded pre-pandemic levels, reaching record highs. Last year, Detroit casinos generated a record $2.27 billion in revenue. Revenues for this year are predicted to set another record between January and August.

If a strike occurs and disrupts operations, the DCC estimates that the gaming properties would lose millions of dollars. Approximately $1.7 million in daily revenues would be lost at MGM Grand Detroit, $1.1 million at MotorCity Casino and $652,000 at Hollywood Casino at Greektown.

Regarding the ongoing negotiations, two casinos issued statements to various news sources. A spokesperson for MotorCity Casino Hotel noted the progress made in the negotiations and expressed the company’s commitment to achieving a fair agreement that benefits employees and maintains the company’s competitiveness.

Similarly, a representative for Hollywood Casino at Greektown emphasized their productive and respectful relationship with the Detroit Casino Council over the years and their commitment to working constructively to reach a mutually beneficial agreement.

MGM Resorts International, through a spokesperson, conveyed their ongoing negotiations with the DCC for a new contract that reflects dedication to their Detroit-based employees while indicating their intention to remain open even if a strike occurs.

It’s worth mentioning that there is also a strike taking place involving around 34,000 United Auto Workers members in Michigan and other states.

In Las Vegas, the Culinary and Bartenders Union announced that 95% of its members voted to authorize a strike in case contract negotiations with casino operators fail to yield a new agreement, and they recently carried out an informational picket at several Las Vegas Strip casinos.