MGM Resorts Nears Historic Deal with Union as Strike Deadline Looms

MGM Resorts Nears Historic Deal with Union as Strike Deadline Looms

MGM Resorts International, the largest employer on the Las Vegas Strip, is on the verge of reaching a historic agreement with the hotel workers union, just hours before a potential strike deadline. The CEO of the company, Bill Hornbuckle, expressed confidence that a deal would be reached before the union’s 5 a.m. Friday deadline.

The Culinary Workers Union, comprised of 35,000 members who work at properties owned or operated by MGM Resorts, Caesars Entertainment, and Wynn Resorts, has been engaged in negotiations since April for new five-year contracts. Earlier this week, the union made a breakthrough deal with Caesars that covers 10,000 workers at several Caesars-owned properties.

In response to the union’s demands, MGM Resorts has acknowledged the need for a pay increase to combat inflation and address other concerns raised by its employees. CEO Bill Hornbuckle believes the forthcoming agreement will address these issues and be hailed as historic.

While negotiations were ongoing, the union’s chief contract negotiator, Ted Pappageorge, welcomed Hornbuckle’s optimism, highlighting the presence of MGM Resorts’ representatives in the bargaining process. A strike could still occur if contracts aren’t secured for 20,000 MGM Resorts workers and 5,000 Wynn Resorts workers by Friday.

However, experts believe that the likelihood of a strike has significantly decreased following the breakthrough deal with Caesars. Historically, once one major company reaches an agreement, others tend to follow suit. Despite this progress, observers note that this is the closest they have come in years to an actual strike.

A strike by workers at the remaining two companies, MGM Resorts and Wynn Resorts, would severely impact Las Vegas’ economy and disrupt operations at prominent hotel-casinos. The strike would coincide with the Formula 1 debut on the Strip and could undermine the city’s major tourist draw. It would also be another high-profile labor action in a year that has seen various strikes across different sectors.

The Culinary Workers Union is adamant about fighting for fair contracts, stressing that their members, including bartenders, servers, and housekeepers, deserve improved wages, better benefits, and enhanced working conditions. The union also seeks greater job security in the face of technological advancements that have already resulted in some positions being eliminated. Safety concerns, including the installation of more security buttons on casino floors, are also key issues for the workers.

While the union has not disclosed specific pay raise figures, it has affirmed that any deal reached by Friday would need approval from its rank and file. Once approved, the details of the contracts will be made public.

As negotiations continue and impending strike action looms, both MGM Resorts and the Culinary Workers Union are hopeful that a historic deal will be reached, satisfying the demands of the workers and averting a major disruption to Las Vegas’ hospitality industry.