Economy

published : 2023-11-09

Caesars Entertainment and Las Vegas Unions Reach Last-Minute Deal, Averting Strike

Caesars Entertainment secures labor contract with unions for 10,000 employees

A group of Caesars Entertainment workers celebrating the labor contract agreement in front of one of the Las Vegas properties, taken with a Nikon D850 camera.

Caesars Entertainment, the second-largest casino operator in Las Vegas, has reached a tentative deal with the unions representing hospitality workers avoiding a potential strike.

The agreement covers approximately 10,000 employees and includes attendants, waiters, and kitchen workers from nine Vegas properties.

The negotiations come at a time when unions across industries are demanding better pay and benefits, leveraging the current shortage of workers.

With the casino resort operators enjoying record profits from the city's tourism recovery post-pandemic, the Culinary Workers and Bartenders Unions successfully secured a five-year labor contract.

While details of the agreement were not immediately disclosed, Caesars Entertainment confirmed that it includes significant wage increases and supports the plan to create more union jobs on the Strip.

The iconic Las Vegas Strip at dusk, showcasing the vibrant lights and bustling activity, captured with a Canon EOS R5 camera.

The Las Vegas unions, recognized as among the most influential in the United States, have been advocating for higher wages, improved safety measures, protection against job-threatening technologies, and reduced quotas for housekeepers.

Meanwhile, the city of Las Vegas prepares for major upcoming events, including the highly anticipated Formula 1 Las Vegas Grand Prix, which is expected to attract over 100,000 tourists.

Despite the successful agreement with Caesars, negotiations with other casino operators, such as MGM Resorts International and Wynn Resorts, are still ongoing.

In the event of a strike, nine casino resorts and 25,000 workers would be affected, primarily employed by MGM.

While MGM has announced a meeting with the unions, Wynn Resorts has yet to respond to requests for comment.

Hospitality workers from the Culinary Workers and Bartenders Unions marching through the streets of Las Vegas during negotiations, photographed with a Sony A7 III camera.

MGM has revealed that every 1% increase in wages translates to approximately $10 million in additional labor costs, according to analysts.

Interestingly, the Culinary and Bartenders unions represent a substantial workforce, comprising around 53,000 workers based in Las Vegas.

As news of the Caesars deal broke, the company's shares rose by 1%, while MGM experienced a 1.4% increase, and Wynn Resorts saw a slight decline of 0.5%.