Detroit Casinos, Workers Stuck On Health Care Costs

Detroit's three casinos have warned their 6,000 union workers money won't be available for salaries or bonuses if health care costs aren't reduced. But labor unions have opposed any changes to the current health care plan. State and federal mediators are trying to break the impasse before a strike is called.

The Detroit Casino Council, representing 6,000 employees at Greektown Casino, MGM Grand Detroit and MotorCity Casino, has countered the casinos’ latest offer in the most recent round of contract negotiations that started in August. The Detroit Casino Council is a consortium of four labor unions including members of UAW Local 7777, Unite Here Local 24, Teamsters Local 372 and the International Union of Operating Engineers Local 324.

The three casinos told union workers if health care costs are not reduced somehow, very little money will be available for wages or bonuses. The casinos expect health care costs will increase by a total of $46 million, to almost $262 million, over the term of the next four-year contract. The labor unions have opposed any changes to the health care plan.

Unite Here spokeswoman Annemarie Strassel said, “The tough issue on the table is who will pay for rising healthcare costs. Based on current proposals, the casinos want to shift more of those costs onto workers. Access to good health care is what makes these middle-class jobs. We want to make sure we reach a fair agreement that keeps health care affordable.” Jacci Woods, a spokeswoman for MotorCity, said, “The parties are negotiating in good faith and are committed to reaching an agreement that is beneficial for all.”

A consultant jointly hired by the casinos and the labor unions has proposed several alternatives that would help the casinos save money on health care without costing members more. State and federal mediators also have been involved in the negotiations.

Mayor Mike Duggan said, “The casinos are an important source of revenue. I get concerned every time there’s a union-management issue, and I hope they find a middle ground and work it out.” Detroit annually collects about $170 million in taxes from Greektown Casino, MGM Grand Detroit and MotorCity Casino.