35,000 Las Vegas hospitality workers ready to strike

Some 35,000 Las Vegas hospitality workers are ready to walk off the job on November 10 in a strike against the casino and resort operators MGM Resorts International, Caesars Entertainment and Wynn Resorts that hold most of the casinos in the city if they not have a labor contract by then, their respective unions said in a combined statement that was released on Thursday.

The Culinary Workers and Bartenders Union has been battling with the operators for more than seven months in an attempt to reach a deal, and 95% of the Union members voted at the end of September to authorize a city-wide strike if an agreement can’t be reached.

On Wednesday, about 75 Culinary Union members were arrested for blocking traffic at the center of the Las Vegas Strip.

The workers’ contracts expired earlier this year. A strike would affect a total of 18 casinos, including the Bellagio, MGM Grand and Caesars Palace.

There hasn’t been a similar strike since 1991 so this would be a rare sight in Las Vegas. Lately, employees in many industries such as entertainment and auto are looking for better wages and benefits as the costs of living increase. In case of Las Vegas, the operators are breaking records when it comes to profits as the market recovers from the covid-19 pandemic and the restrictions that followed that almost ruined the gambling industry in the city.

The Las Vegas unions are considered to be among the most powerful in the country. They are demanding higher wages, stronger protection against new technology that may threaten jobs (AI most likely), as well as a reduction in steep quotas for housekeepers, and improved safety for all workers.

Ted Pappageorge, the Secretary-Treasurer of the Culinary Union, said that the companies have made some movement when it comes to economical part of the deal, and that there are some deals in place already, but that the unions and the companies are still “millions of dollars apart”.

MGM and Wynn did not comment on the impending strike. Caesars Entertainment CEO Thomas Reeg said “When we reach an agreement on the contract, it’s going to be the largest increase that our employees have seen in the four decades since we started interacting with the Culinary Union”. Reeg also added that Caesars is “in dialogue constantly with the union and have further meetings this week”.

Bethany Khan, the spokesperson for the Culinary Workers Union, also confirmed that they’re seeking “the largest wage increases ever negotiated”. Members currently earn around $26 per hour and have health insurance.

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.

There are some major events in November in Las Vegas, such as the F1 Las Vegas Grand Prix that is expected to bring in more than 30,000 additional tourists to the city. The Grand Prix is scheduled to take place on the Strip from November 16 to November 19, with the opening ceremony on November 15.

On Tuesday, the Culinary union said it had reached an agreement with the Las Vegas Grand Prix and Liberty Media (that owns Formula One Group) to guarantee workers in the Formula 1 pit building have a right to vote on unionization.

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.