MGM Resorts International and Culinary Workers Union Local 226 reached a tentative five-year contract agreement early Thursday morning covering more than 25,400 non-gaming workers at eight Strip properties.
The deal, announced by the Culinary in a post on X, formerly known as Twitter, marks the second straight early-morning contract settlement following Wednesday’s agreement with Caesars Entertainment. The contract also includes members of Bartenders Union Local 165, a Culinary affiliate.
In a joint statement from the union and MGM, the agreement reportedly includes “the largest wage increases ever negotiated in Culinary Union’s 88-year history,” along with workload reductions for guest room attendants, mandated daily room cleaning, increased safety protections for workers on the job and expanded technology contract language.
A date for workers to ratify the contract was not determined. The deal means MGM Resorts and the Culinary avoided a strike that was planned for Friday morning.
The contract covers employees at Aria, Bellagio, Excalibur, Luxor, Mandalay Bay, MGM Grand, New York-New York and Park MGM.
The Culinary said the agreement was reached after nearly 20 straight hours of negotiations.
“Workers have secured significant raises every year for the next five years, preserved our great union health insurance, union pension, and comprehensive union benefits,” Culinary Secretary-Treasurer Ted Pappageorge said in the statement.
MGM Resorts CEO Bill Hornbuckle, who expressed optimism Wednesday that a new contract would be agreed upon, said in the joint statement that employees were given a “well-earned boost” to pay and benefits.
“Our employees are the heart of our company and the driving force in the success we’ve enjoyed in Las Vegas post-pandemic. We’re pleased to have reached a tentative agreement that averts a strike,” he said.
The Culinary has been in contract negotiations with Caesars, MGM and Wynn Resorts, the three largest employers on the Strip with 18 properties that cover 38,000 non-gaming union workers, since April.
The agreements expired at the end of May and were extended until September, when the union voted on a strike authorization vote that was overwhelmingly approved.
The union has contract talks scheduled for Thursday with Wynn Resorts covering Wynn Las Vegas and Encore.
During Wynn’s third-quarter conference call Thursday, company executives did not mention the status of the negotiations with the Culinary.
However, Wynn CFO Julie Cameron-Doe said the company budgeted for increased payroll costs covering union and non-union employees during the recently completed three-month period and heading into 2024.
“The team has done a great job mitigating union-related payroll increases with cost efficiencies in areas of the business that do not impact the guest experience,” Cameron-Doe said.
Source: The Nevada Independent
Preview Image: Shutterstock
