Caesars and Culinary Union Tentative Contract Agreement is Pending Union Vote

Article ByDavid Weir

November 8, 2023

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Posted in: Nevada Gambling News, US Casino News, US Gambling News

In a dramatic turn of events, the Las Vegas Culinary Union has announced a tentative agreement with casino operator Caesars Entertainment. The deal arrives just two days before a looming strike deadline.

The new five-year contract covers approximately 10,000 hospitality workers across nine of Caesar’s Nevada casino venues on the Las Vegas Strip.

It is the result of a grueling 20-hour negotiation marathon ahead of a November 10 deadline imposed by the union. Members will still have to vote on the deal in the coming days.

However, 25,000 Las Vegas hospitality workers are still awaiting news from ongoing negotiations with MGM Resorts and Wynn Resorts, with strike action at those properties still possible.

“After 20-straight hours of negotiations, Culinary Union is pleased to announce a Tentative Agreement towards a new 5-year contract has been reached with Caesars Entertainment for approximately 10,000 hospitality workers at nine Vegas properties,” the Union said in an announcement on social media.

Caesars Reacts to Deal

Caesars said that the agreement, still pending ratification by the union members, promises meaningful wage increases and growth opportunities, reflecting its recognition of its employees’ contributions over the past two years.

Alongside record visitors to Sin City, casinos and retail sportsbooks in Nevada have pulled in their highest revenues ever over the post-pandemic period.

Caesars’ statements also highlighted the company’s pride in its long-standing relationship with the union.

“We are confident that our Team Members will see this agreement as a demonstration of our commitment to their success and as a solid platform from which to deliver the extraordinary service and experiences our guests have come to expect,” Caesars said.

Previously, Caesars CEO Tom Reeg told company investors any deal would likely include record wage rises.

“You should expect that when we reach an agreement on a contract, it’s going to be the largest increase that our employees have seen in the four decades since we started interacting with the Culinary Union,” he said.

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Ongoing Tensions

Despite this breakthrough with Caesars, the Culinary Union’s struggle is not over.

The threat of a strike at MGM Resorts and Wynn Resorts remains a real possibility without agreements similar to the precedent Caesars has set – whatever that is.

The union has been clear about its demands for larger wage increases, reduced workloads, enhanced safety measures, recall rights, and protection from Las Vegas’ increasing automation.

It is not yet known how many of the union’s concerns were addressed exactly. However, Culinary Union secretary treasurer Ted Pappageorge said earlier this week that a lot of movement was needed before an agreement.

Now that Caesars has reached a deal, the pressure is on MGM and Wynn to create a satisfactory proposal before a huge strike.

All of this is also happening ahead of the city’s biggest sporting event of the year, with the F1 Las Vegas Grand Prix set to take place from November 16 to 18.

More than 100,000 extra visitors are expected over the race weekend. Casino resorts have pulled out all the stops with multimillion dollar packages, and millions have been spent by the city preparing the race circuit that goes around many of the Las Vegas Strip’s most iconic sights.

Any large scale labor action would be a big blow to the operators’ plans, especially with rival Caesars now likely free from that concern.

An ongoing dispute over casino worker’s contracts is also playing out for the three Michigan casinos in Detroit. More than10,000 workers are in their second week of strike action over similar issues to workers in Las Vegas.