Hospitality workers, Las Vegas casinos in crunch time for labor talks
Reuters
Published Oct 03, 2023 02:31PM ET
Updated Oct 03, 2023 04:21PM ET
By Doyinsola Oladipo
NEW YORK (Reuters) -Unions representing roughly 53,000 Las Vegas workers on Tuesday kicked off critical negotiating sessions with hotel and casino operators after its members voted at the end of September to authorize a city-wide strike.
The culinary workers union and bartenders union represent workers at properties around the city, including those operated by MGM Resorts (NYSE:MGM) International, Caesars (NASDAQ:CZR) Entertainment, and Wynn Resorts (NASDAQ:WYNN). Workers are negotiating for a new five-year contract to boost wages and benefits as tourism in Las Vegas recovers from depressed visitor levels during the pandemic.
The Las Vegas unions are among the most powerful in the United States, covering workers who wait tables, clean hotel rooms and prepare food. Their demands mirror similar activity in the shipping, rail and auto industries where employees have sought better compensation due to the higher cost of living as unemployment stays low.
"The companies have an opportunity to do the right thing and step up and get a contract done, but if not, there could be a strike any time after that," said Ted Pappageorge, Secretary-Treasurer for the culinary union. "Any time after October 6th, there could be a strike," he said.
Over 3.3 million people visited Las Vegas in August 2023, a 7% decrease from levels during the same period in 2019 before the pandemic, according to data from the Las Vegas Convention and Visitors Authority. Average room rates were $158.47 in August, a 31% increase from the same period in 2019.
The unions met with MGM Resorts on Tuesday and are scheduled to meet Caesars on Wednesday and Wynn on Friday. Pappageorge said the unions have proposed the largest wage increases ever negotiated in their history, reduced workload and room quotas for housekeepers, better safety protections for workers, among others.
He said the unions have been in talks since April and have made little progress.
"We will continue to work with Local 226 and Local 165 to reach an agreement that provides our employees with competitive wages and benefits," said a Wynn Resorts spokesperson.
MGM and Caesars did not immediately respond to requests for comments.
The five-year union contract with MGM, Caesars, Wynn and smaller operators ended in May 2023, with an extension to Sept. 15, according to the union. About 95% of hospitality workers voted on Sept. 26 to authorize a strike across 22 properties on the Las Vegas Strip.
The unions have not yet set a strike deadline, according to a spokesperson. In recent years, the culinary and bartender unions and the casino and hotel companies have managed to avoid a strike.
The casino operators "stated in our meetings that negotiation processes are about where they thought they’d be at this time with expectations to reach an agreement in October," Truist equity analyst Barry Jonas said in a note.
Get The News You Want
MGM said that every 1% increase in wages will equal approximately $10 million of additional wage costs, according to Jonas. He estimated that wage increases could translate to a $40 to $60 million annual financial effect on Caesars and double that amount for MGM.
MGM employs about 22,000 workers represented by the unions while Caesars employs 10,000, according to the note.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.