Vegas Casino Workers Strike a Greater Possibility as Talks Stall

Article by : Erik Gibbs Oct 10, 2023

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As contract negotiations between Las Vegas hospitality unions and major casino-resort operators remain at an impasse, concerns regarding potential strikes that could disrupt the city’s thriving hospitality industry are growing.

Tensions are escalating in Sin City as talks between Vegas unions and major casino resort operators have hit a roadblock.

Despite ongoing negotiations, more progress has yet to be made in addressing the unions’ demands.

Union representatives expressed disappointment after recent meetings with industry giants MGM Resorts International and Caesars Entertainment failed to yield significant developments.

Ted Pappageorge, the Secretary-Treasurer of Culinary Union Local 226, voiced the unions’ frustrations and emphasized the urgent need for fair agreements, especially with high-profile events like the Formula 1 races on the horizon.

While negotiations are ongoing, the unions also discuss with Wynn Resorts Ltd. The spectre of strikes looms large, with 53,000 members of the Culinary Workers Union having authorized a citywide strike that could impact at least 18 properties.

These workers, including housekeepers, servers, cooks and bartenders, recently voted to authorize a walkout, revealing their dissatisfaction with current compensation and working conditions.

Although specific wage demands remain undisclosed, the workers’ calls for fair treatment, job security and improved conditions take centre stage, casting a shadow over Las Vegas’ hospitality landscape.

The Culinary Union wields significant influence in Nevada, and this move toward a strike reflects a broader national trend, with unions across various sectors demanding higher wages, improved working conditions and job security, particularly in the post-pandemic era.

As negotiations continue, Las Vegas braces for potential disruptions in iconic establishments like Bellagio, Mandalay Bay, Wynn Las Vegas, MGM Grand and Caesars Palace, underscoring the pressing need to resolve the ongoing labour dispute.

Las Vegas faces additional challenges as MGM Resorts International recently dealt with a cybersecurity threat, leading to the shutdown of specific computer systems.

This incident raised concerns about data security and operational disruptions within affected casinos and hotels, highlighting vulnerabilities within the hospitality sector.

MGM Resorts International has disclosed the far-reaching consequences of the recent cyberattack, which caused widespread disruptions and chaos among clients.

The incident is expected to hurt the company’s financial results for the third quarter of 2023, mainly affecting its Las Vegas operations, with an estimated reduction of approximately $100 million in Adjusted EBITDAR for September 2023.

The company has restored operations, and the administration has informed us that all significant threats have been dealt with. However, the entire halt has caused the enterprise to lose approximately $10 million in related expenses.

Despite this setback, MGM Resorts remains optimistic about a solid fourth quarter, driven by events like Formula 1.

Moody’s Investors Service has classified the incident as “credit negative,” highlighting the critical need for robust cybersecurity measures in the gaming and hospitality industry.