Caesars averts strike as casino operator, Las Vegas unions reach deal
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The unions representing hospitality workers in Las Vegas reached a tentative deal with Caesars Entertainment for a new labor contract covering about 10,000 employees on Wednesday, two days before a strike deadline.
The negotiations come as unions across industries press employers for better pay and benefits, buoyed by a shortage of workers. Casino resort operators have been earning record profits from a steady post-pandemic recovery in Las Vegas tourism.
The Culinary Workers and Bartenders Unions said the five-year contract would cover employees including attendants, waiters and kitchen workers at nine Vegas properties.
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Details of the agreement were not immediately available. The unions plan to make a statement later in the day.
Caesars Entertainment, the second-biggest Las Vegas casino operator by number of employees, said the deal provides "meaningful wage increases" and aligns with plans to bring more union jobs to the Strip.
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The Las Vegas unions, considered among the most powerful in the United States, have been demanding higher wages, stronger protections against new technology that may threaten jobs, a reduction in steep quotas for housekeepers and improved safety.
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Visits to the city in September were 4% lower than in the same period in 2019, according to data from the Las Vegas Convention and Visitors Authority. Room rates, however, have surged more than 47%.
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The city is gearing up for major events including the Formula 1 Las Vegas Grand Prix this month, which is expected to draw more than 100,000 tourists.
"Companies that can't afford a strike shutdown are going to face the most pressure to make big concessions," said Erik Gordon, a University of Michigan business professor.
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"It's taken a little too long in my opinion," said Daniel Busby, 33, a fry cook at the Paris Las Vegas Hotel and Casino operated by Caesars, before the deal was reached. "We are just asking to be able to live a little bit more comfortably."
The unions have been in talks with the casinos for about seven months and 95% of their members had voted at the end of September to authorize a city-wide strike.
TALKS WITH MGM, WYNN CONTINUE
Talks with casino operators MGM Resorts International and Wynn Resorts are yet to yield an agreement ahead of Friday's deadline for a strike.
A strike at MGM and Wynn would affect nine casino resorts and 25,000 workers, a majority of whom are employed by MGM.
MGM said they are meeting with the unions in the afternoon, according to a spokesperson.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CZR | CAESARS ENTERTAINMENT INC. | 25.67 | -1.34 | -4.96% |
| MGM | MGM RESORTS INTERNATIONAL | 30.36 | -1.25 | -3.95% |
| WYNN | WYNN RESORTS LTD. | 82.33 | -3.82 | -4.43% |
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Wynn did not immediately respond to a request for comment. MGM has said every 1% increase in wages will equal about $10 million of additional labor costs, according to Truist analyst Barry Jonas.
He estimated that wage increases could lift annual costs by $40 million to $60 million for Caesars and double that amount for MGM, based on their employee figures.
The Culinary and Bartenders unions represent some 53,000 workers based in Vegas. Caesars shares were up 1%, while MGM rose 1.4% and Wynn Resorts dropped 0.5%.