Caesars (NASDAQ:CZR) Entertainment has reached a preliminary five-year agreement with the Culinary Workers Union Local 226, averting a potential strike by approximately 10,000 employees at nine of its Las Vegas properties. This news comes after an intense 20-hour negotiation period that took place at the Horseshoe on Tuesday, Nov. 7, 2023, concluding just ahead of the Friday strike deadline. The union shared the news early Wednesday, days before the Veteran's Day holiday and the Formula One Las Vegas Grand Prix event.
The tentative agreement covers workers at various Strip properties, including Paris Las Vegas, Caesars Forum Convention Center, Flamingo Las Vegas, Horseshoe Las Vegas, Harrah’s Las Vegas, Planet Hollywood, The Cromwell, and The Linq. This development provides relief to nearly 10,000 hospitality workers across nine Vegas establishments who were under the threat of walkouts during critical events such as the football season and the city's inaugural F1 racing event.
The deal has sparked an uptick in morning trading shares for both Caesars Entertainment and MGM Resorts (NYSE:MGM) International. However, further talks with MGM Resorts International and Wynn Resorts (NASDAQ:WYNN) are scheduled to avert potential strikes at their resorts. The date for the formal vote on this agreement by union members is yet to be determined.
These negotiations have been ongoing since April regarding pay, benefits, job security, and working conditions. The situation had intensified following a September strike authorization vote by union members that led to large-scale protests and resulted in the arrest of 58 workers disrupting traffic on the Strip. Approximately 35,000 union members have been operating under expired contracts for the past five months.
Ted Pappageorge, the chief negotiator for the union, urged companies to negotiate in good faith or face customers being encouraged to spend elsewhere. With this new development with Caesars Entertainment, it may provide a framework for upcoming discussions with other companies such as MGM Resorts International and Wynn Resorts. The union is expected to make further comments later today.
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