The Culinary Workers Union in Nevada, representing a workforce of 60,000 hospitality workers, including unionized fountain workers, is currently locked in negotiations with major Las Vegas resorts. The ongoing talks, which began in April, involve MGM Resorts (NYSE:MGM), Caesars (NASDAQ:CZR) Entertainment, Wynn Resorts (NASDAQ:WYNN), and MGM Mandalay Bay. The union is pushing for a new five-year contract by November 10 and is demanding a 4% raise and protections against technology advances.
These negotiations involve 35,000 employees working at at least 18 locations who are directly employed by the negotiating employers. If no agreement is reached by the stipulated deadline, the union has threatened a large-scale strike that could significantly affect both union and nonunion employees.
Union Secretary-Treasurer Ted Pappageorge highlighted that the negotiations are still far from reaching an agreement. The tension escalated recently when 75 union members were arrested during a civil disobedience stint. They wore shirts stating "I'm getting arrested to win the best contract ever".
The potential disruption could have a substantial impact on Las Vegas' economy. The city welcomed 38.8 million visitors in 2022, according to the Las Vegas Convention and Visitors Authority. This marked a 20.5% increase from the previous year and came with an average hotel capacity of 79%. The visitor numbers are expected to rise further with the approaching Thanksgiving holiday.
Meanwhile, negotiations continue under a contract extension for two dozen unionized workers at other resorts. The workers have been operating under an expired contract since September 15, 2023, and no additional big table negotiations are currently scheduled.
Vice President Kamala Harris visited the workers during an October 12 protest, endorsing the union organizers' efforts. President Biden also showed his support for union workers during a September 26 visit to a picket line in Michigan where United Auto Workers were pushing for a better contract. The strike, if not averted, would coincide with the Strip's highly anticipated Formula 1 races debut. Unionized employees at MGM properties in Detroit have already initiated strikes, further escalating the situation. The Culinary Union supports these Nevada workers and has announced that "strike prep is underway."
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