Two major casino chains have reached deals with their workers in Las Vegas over new contracts, in the face of potential strike action which had the capacity of dealing a potentially crippling blow to the city’s resorts and casinos.
The Culinary and Bartender’s Union, which represents casino staff like cocktail servers, maids, cooks, bartenders and others employed in the hospitality industry, have been locked in negotiations with Nevada’s hospitality companies over a new five-year contract, which expired on Friday. Chief among concerns are wage increases and the looming danger of automation.
Ninety-nine per cent of the 25,000 workers who participated in a May 22 vote supported going out on strike. On Friday, workers reached a tentative agreement with one employer, Caesar’s Entertainment, over a new contract, which would cover 12,000 workers at nine casinos.
Then Saturday, just as workers began to make strike signs, the Union announced a last-minute, tentative deal with MGM resorts for a new five-year-contract covering 24,000 workers at 10 casinos.
Negotiations continue with 15 other Las Vegas resorts where contracts have expired, but the fact that Caesar’s and MGM, the two largest employers have reached deals makes it much more likelythat the smaller ones will soon as well.
🚨BREAKING🚨We are pleased to announce that a tentative agreement has been reached with @MGMResortsIntl.
The historic new 5-year contract covers approximately 24,00 workers at 10 casino resorts on the Las Vegas Strip. ✊🏽✊🏻✊🏿#OurFutureIsNow
(More details to follow) pic.twitter.com/2uJMFowRtf
— The Culinary Union (@Culinary226) June 3, 2018
We continue negotiations re: the remaining 15 Las Vegas casino resorts whose contracts have expired on the Strip: @TropLV @LVStratosphere @SLSLasVegas @TIvegas @WestgateVegas @FSLasVegas and in DTLV: @BinionsLV @fremont @ElCortezLV @GoldenNuggetLV @DowntownGrandLV @PlazaLasVegas
— The Culinary Union (@Culinary226) June 3, 2018
Any potential strike action would cost Las Vegas’ casinos tens of millions of dollars, like the last strike in 1984, which spanned 67 days.
According to the Culinary Union, MGM and Caesar’s were poised to lose more than $10 million a day from a strike, leading to a monthly earnings loss of $206 million and $113 million by MGM and Caesar’s respectively.
One of the chief demands for workers has been for higher wages, especially after MGM demonstrated its own profitability by instituting a $2 billion stock buy-back program.
“We’ve been sacrificing for many years — especially during the great recession we decided to forgo wage increases so the companies could remain profitable,” Culinary Union spokeswoman Bethany Khan told the Guardian. “Now they are, so as their best investors we want a share of that.”
Increasing automation is also a major issue for casino workers, as casino operators look for ways to replace workers. Part of the union negotiation involved an independent workload study for housekeepers about the possible effects of automation.
“We know technology is coming, but workers shouldn’t be pushed out or left behind,” Chad Neanover, a prep cook at the Margaritaville, said. “Casino companies should ensure that technology is harnessed to improve the quality and safety in the workplace, not as a way to completely eliminate our jobs.”
And it’s not just casino workers under fire from the looming threat of automation. A 2017 study by the global consultancy firm McKinsey found that as many as 70 million workers — about a third of the American workforce — will have their jobs threatened by robots. By 2030, demand for administrative support at offices will drop by 20 percent, while demand for those doing “predictable physical work” will drop by 30 percent.
Meanwhile, another report released in January at the Davos forum found that by 2026, 1.4 million jobs in the U.S. will be threatened by automation, 57 percent of which are jobs currently performed by women.