Caesars averts strike as casino operator in deal with Las Vegas unions
THE unions representing hospitality workers in Las Vegas reached a tentative deal with Caesars Entertainment for a new labour contract covering about 10,000 employees on Wednesday (Nov 8), two days before a strike deadline was set to expire.
The Culinary Workers and Bartenders Unions said the five-year contract would cover workers including attendants, waiters and kitchen workers at nine Vegas properties.
Details of the agreement were not immediately available.
Caesars Entertainment said the deal provides “meaningful wage increases” and aligns with plans to bring more union jobs to the Strip.
The Las Vegas unions, considered among the most powerful in the US, have been demanding higher wages, stronger protections against new technology that may threaten jobs, a reduction in steep quotas for housekeepers and improved safety.
The negotiations come as unions across industries press employers for better pay and benefits, buoyed by a shortage of workers and favourable public opinion.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Casino-resort operators have been earning record profits from a steady post-pandemic recovery in tourism to Las Vegas.
Visits to the city in August were just 7 per cent lower than in the same period in 2019, according to the Las Vegas Convention and Visitors Authority. Room rates, however, have surged more than 30 per cent.
The city is also gearing up for major events including the Formula 1 Las Vegas Grand Prix this month, which is expected to draw more than 100,000 tourists.
“Companies that can’t afford a strike shutdown are going to face the most pressure to make big concessions,” University of Michigan professor Erik Gordon said.
The unions have been in talks for about seven months and 95 per cent of their members had voted at the end of September to authorise a city-wide strike.
Talks with operators MGM Resorts International and Wynn Resorts are yet to yield an agreement ahead of the Nov 10 deadline for a strike.
A strike at MGM and Wynn would affect nine casino resorts, of which eight are operated by the former. The two companies were not immediately available for comment.
MGM has said every 1 per cent increase in wages will equal about US$10 million of additional labour costs, according to Truist analyst Barry Jonas.
He estimated that wage increases could lift annual costs by US$40 million to US$60 million for Caesars and double that amount for MGM, based on their employee figures.
The Culinary and Bartenders unions represent some 53,000 workers based in Vegas.
Caesars shares were up about 3 per cent in early trading, while MGM and Wynn Resorts rose 1.6 per cent and 0.5 per cent, respectively. REUTERS
Share with us your feedback on BT's products and services
