All three major casino resort operators in Las Vegas, Caesars, MGM and Wynn, signed a tentative five-year deal with over 35,000 members of hospitality workers unions and therefore ended a seven-month negotiation process that was about to culminate with a city-wide strike.
The various unions that represent underpaid hospitality workers in Las Vegas were preparing for a massive strike on November 10 that would number 35,000 workers, but the strike was avoided on Friday, November 10, hours before the deadline. Caesars was the first operator to sign the deal on November 8, MGM followed the next day, and Wynn was the last to act.
Last Wednesday, about 75 Culinary Union members were arrested for blocking traffic at the center of the Las Vegas Strip. The workers’ contracts had expired earlier this year, when the negotiations began.
On Thursday, November 9, MGM Resorts International signed a new five-year tentative agreement with 25,470 members of the Culinary Workers and Bartenders Union that are employed by MGM Resorts, which is roughly half of the total union membership in the city. This averts a strike at eight MGM properties in Las Vegas, of 18 total that would have been affected by a city-wide strike that was announced by the unions earlier.
This agreement comes a day after Caesars Entertainment reached a deal with their own 10,000 workers, also a tentative five-year deal. The Culinary Union Secretary-Treasurer Ted Pappageorge said the deal is of historic nature given the wage increases in the first year and funds alotted to pensions and healthcare. “This is the best contract we’ve ever had in our 88-year history”, added Pappageorge. The exact numbers haven’t yet been revealed to the public.
Wynn Resorts, the third and last company that would have been affected by the strike, was the last one to reach a deal as it happened on Friday, just hours before the strike deadline. Around 5,000 union members work at two Wynn properties.
The Las Vegas unions, considered to be among the most powerful in the country, also managed to reduce the workload for housekeepers for the first time in over 30 years. The agreement reduces their room quotas and mandates daily room cleanings. The mandatory daily room cleanings create job security for workers.
The deal also extends recall rights for workers, providing them with the option to return to their jobs in the event of another pandemic or economic crisis for up to three years.
Wage increases are likely to be in the region of $40m to $60m for Caesars alone, and double that amount for MGM Resorts, looking at the number of employees.
MGM executives were also left with no choice but to say the deal is a good one for them as they care about the workers and the deal is good for their workforce so it’s therefore a step in the right direction. “We’re pleased to have reached a deal that gives our Culinary Union employees a well-earned boost to pay and benefits, and reduces workloads”, said Bill Hornbuckle, MGM CEO, in a statement.
The deal hasn’t gone unnoticed by the President Joe Biden either, as he congratulated the unions and said the agreement will help give all the workers the quality of life they deserve.
Prior to this dramatic agreement a day before a key event, the unions have been in talks with the casinos for about seven months. Eventually, 95% of the union members voted to authorize a city-wide strike on 10 November. Meanwhile, MGM workers in Detroit have been on strike since mid-October.
The unions therefore successfully negotiated deals with the three largest casino operators, and with them the deal is reached and there will be no more negotiating after this point. However, the unions said the negotiations with 24 smaller casinos and resorts are still ongoing, such as those owned by Hilton, that include 18,000 further workers that aren’t employed at Caesars, MGM or Wynn. These workers are now working under a labor contract extension that has been in place since June 1 and can be terminated anytime.
Shares of all three major companies suffered a drop as their expenses just increased. Wynn had a 6% drop after their deal was revealed, and the shares of MGM went down 1.5%. Caesars also suffered a 5% loss and their shares are currently trading at $43.40, down from a yearly high of $59.38 in June.
Casino resort operators in Las Vegas have been earning record profits after a steady post-pandemic recovery that saw the number of visitors surge. Visits to the city are still lower than pre-pandemic, as 4% less people came to Las Vegas in September 2023 than in September 2019, but room rates have surged more than 47%.
In December, Las Vegas was reported to have 22 consecutive months with income over $1bn, and this has since expanded to be over 30 consecutive months. This was mentioned as one of the main arguments for giving the workers better deals, as all the Las Vegas companies are enjoying record profit.
The city is hosting the Formula 1 Las Vegas Grand Prix from November 15 to November 19, and is scheduled to host the Super Bowl in February. Las Vegas previously hosted two F1 races, called the Caesars Palace Grand Prix in 1981 and 1982. The upcoming 2023 race is expected to generate $1.2bn for the state of Nevada.
Less than a week before the inaugural F1 Las Vegas Grand Prix, more than 10,000 tickets remain unsold, causing ticket brokers and private resellers to reduce the asking prices to below face value.
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Daniel Horvat 
November 11, 2023 
