Virgin Hotels Las Vegas Unable To Find Resolution With Striking Workers

Article by : Erik Gibbs May 28, 2024

• 
• 

The labor dispute between Virgin Hotels Las Vegas and the Culinary Union has reached a critical juncture after five months of fruitless contract negotiations. This ongoing impasse follows nearly a year since the expiration of workers’ previous contracts, leaving the union dissatisfied with the latest offer from Virgin.

Labeling it as “last, best, and final,” Virgin’s proposal has been rejected by the union, which insists it does not sufficiently address workers’ needs.

Ted Pappageorge, the Secretary-Treasurer of the Culinary Union, has been vocal in his criticism of Virgin’s proposal. He described the offer, which includes some wage increases where there were previously none, as “woefully inadequate.”

Pappageorge stressed that companies in Las Vegas must invest in their workforce as much as they do in their physical properties. He believes Virgin’s offer falls short of these expectations, highlighting what he sees as a lack of commitment to the employees.

Virgin’s decision to make their offer public on Wednesday has also drawn ire from the union. This move is seen as highly unusual and disrespectful, with Pappageorge interpreting it as a publicity stunt rather than a sincere negotiation effort. He noted that it is unprecedented for a company to share its offer letter with the press in such a manner, indicating a lack of genuine engagement in the process.

The primary sticking point in the negotiations is the inadequacy of the proposed wage increases. The union is demanding a 10% increase in wages and benefits in the first year of the new contract and a total of 32% in raises over the contract’s duration.

These demands align with the citywide standards set for economic agreements involving over 50,000 workers at other major Las Vegas properties, including MGM Resorts International and Caesars Entertainment.

Virgin claims it cannot afford the union’s proposed wage increases, but Pappageorge disputes this, pointing to Virgin’s backing by Wall Street banks and hedge funds. He argues that if other independent Las Vegas properties and large hospitality companies can meet similar demands, Virgin should be able to do the same.

In response to the stalled negotiations, the union initiated its first official strike in over 20 years, leading to a 48-hour work stoppage at Virgin Hotels Las Vegas. Hundreds of workers participated, driven by frustration over the lack of proposed wage increases.

Virgin’s final offer guarantees benefit contributions for the first three years of the five-year contract, intended to provide a “runway” to stabilize the business. For the last two years of the contract, Virgin proposes a $1-an-hour package increase each year, which would be divided into 51 cents for benefits and 49 cents for wages.

Pappageorge criticized this offer as insufficient, comparing it to the $1.70 increase that workers at the Strat will receive in the final year of their contract. The offer also includes workload reductions for guest-room attendants and increased gratuity calculations based on menu retail prices for all complimented food and beverages. Despite these concessions, the union maintains that the overall package does not meet the necessary standards for workers’ acceptance.