In a significant development, thousands of workers in Las Vegas are set to picket MGM Resorts and Caesars Entertainment casinos for the first time in nearly two decades. The Culinary Workers and Bartenders Unions are demanding a new five-year contract that includes improved wages and benefits, as the unions argue that casino operators are enjoying record profits. While previous negotiations were resolved through the threat of a strike, these talks have been slow and unproductive, leading to the decision to picket. This action highlights the increasing influence and power of unions in the United States, as workers across various industries have successfully used labor actions to pressure companies into meeting their demands. The unions met with the three largest private employers in Las Vegas recently, but negotiations were described as “very disappointing” by union representatives. As the strike looms, the unions are calling on casino patrons to respect the picket lines and not cross them. The outcome of this labor dispute will undoubtedly have significant implications for the hospitality industry in Las Vegas and the wider labor movement in the United States.
Background
Las Vegas is currently facing the possibility of a strike as thousands of workers plan to picket MGM Resorts and Caesars Entertainment casinos. The unions representing these workers, the Culinary Workers and Bartenders Unions, are seeking a new five-year contract that includes improved wages and benefits. This comes at a time when casino operators are posting record profits, making the workers’ demands for better compensation and working conditions a significant issue. Despite threats of a strike, negotiations between the unions and casino operators have been slow, leaving the workers feeling frustrated and unsatisfied with the progress.
Workers to Picket MGM and Caesars Casinos
The Culinary Workers and Bartenders Unions have made the decision to picket in front of eight MGM and Caesars resort locations. This action serves as a way for the unions to demonstrate their dissatisfaction with the current negotiations and put pressure on the casino operators to meet their demands. Additionally, the unions have called upon casino customers to support the picket lines by refusing to cross them. This form of solidarity is intended to further emphasize the importance of the workers’ cause and raise awareness among visitors and tourists.
Powerful Unions in the United States
The Culinary Workers and Bartenders Unions are among the most influential unions in the United States. With a membership of 53,000 hospitality workers in Las Vegas, these unions have a significant impact on the labor landscape. Furthermore, unions in other industries, such as auto, rail, and healthcare, have successfully exerted their power through labor actions in recent months. This highlights the growing strength of unions across different sectors and their ability to demand better working conditions and compensation for their members.
Disappointing Negotiations
The negotiations between the unions and the casino operators have been described as “very disappointing” by the unions’ representatives. One of the main concerns is the lack of substantive wage proposals from the companies. The workers are demanding higher wages, as well as stronger protections against potential job losses due to new technology. They are also calling for lower housekeeping quotas and improved safety measures. The slow progress in these negotiations has left the workers feeling frustrated and has pushed them to take more assertive action in the form of picketing.
Impact on Tourism and Events in Las Vegas
The possibility of a strike has raised concerns about the impact it could have on tourism and major events in Las Vegas. In September, 95% of union members voted to authorize a citywide strike, which could potentially disrupt the tourism industry, a crucial component of the city’s economy. While there has been a decrease in the number of visitors compared to pre-pandemic levels, room rates have increased significantly. This suggests that despite the potential decrease in visitors due to a strike, the demand for accommodations remains high. However, it is worth noting that Las Vegas is preparing for a major event, a Formula 1 race in November, which is expected to bring in a large number of tourists. The outcome of the negotiations and the potential strike could have a significant impact on the success of this event and the city’s overall tourism industry.
Cost Concerns for Casino Operators
One of the main concerns for the casino operators is the potential increase in labor costs if they were to meet the workers’ demands. Estimates suggest that even a 1% increase in wages could add millions of dollars to labor costs for these companies. MGM Resorts, for example, could see an increase of $10 million in labor costs for every 1% increase in wages. Similarly, Caesars Entertainment could face an increase of $40 million to $60 million a year, potentially doubling that for MGM based on their employee count. These increased labor costs could have a significant impact on the financial health of the casino operators, potentially affecting their profitability and sustainability.
Conclusion
The current labor dispute between the Culinary Workers and Bartenders Unions and the casino operators in Las Vegas highlights the power and influence of unions in the United States. The workers’ demands for higher wages and improved working conditions come at a time when casino operators are posting record profits. The slow progress in negotiations and the possibility of a strike have raised concerns about the impact on tourism and major events in Las Vegas. Additionally, the potential increase in labor costs for the casino operators adds another layer of complexity to the situation. As the negotiations continue, it remains to be seen how this labor dispute will be resolved and what the implications will be for both the workers and the casino operators.
References
- Doyinsola Oladipo. “Thousands of Las Vegas workers to picket MGM, Caesars casinos.” Reuters. October 9, 2023.
- Ibid.