About 2,800 striking union workers at MotorCity Casino and Hollywood Casino at Greektown in Detroit voted on November 26 to ratify new five-year labor agreements, according to the Detroit Casino Council (DCC). Workers at MGM Grand Detroit voted against the agreement and still are on strike.
More than 3,700 workers walked out on October 17 when their contracts expired at all three Detroit casinos, which remained open during the strike by relying on management staff. The newly ratified contracts affect about 2,100 employees at MotorCity and Hollywood Casino at Greektown.
The new contracts with MotorCity and Greektown workers include 18 percent wage increases in the first year and 30 percent increases over the remainder of the contract, or $4 an hour in year one and $5 an hour in total raises over the five years, the DCC said. In addition, the contracts call for no increased costs for employee health insurance, a 401(k) employer match up to $1,000, a paid Juneteenth holiday and reduced workloads in housekeeping and other jobs. The wage increases are the largest ever negotiated in the 23-year history of the Detroit casino industry.
The DCC, which represents five unions, issued a statement declaring the new contracts with two of the casinos prove “strikes work.” It said, “Workers shouldn’t have to strike to win a contract that respects their hard work and pandemic sacrifices, but the employers’ positions moved significantly over the course of our strike.”
Many of the strikers walking the picket line in the cold outside MGM said the contract’s 5-year term was too long and the $3 an hour pay raise was too low.
In a statement, MGM officials said the vote against ratifying the proposed contract was “a very disappointing result, especially considering the historic nature of our offer and the fact that it would immediately and positively benefit our DCC‐represented MGM Grand employees and their families. It’s also disappointing because the other two Detroit casinos voted ‘yes’ on ratification. Looking ahead, we will continue to remain open and operational just as we have throughout the strike.”
Workers’ unions urged patrons to avoid the casinos and to not wager on the casinos’ online betting apps until the strike ended. As a result, gambling revenue at the three venues took a hit. According to the Michigan Gaming Control Board, in October the three casinos reported $81.7 million in adjusted gross receipts from most in-person gambling activities, a 22 percent drop from September.
Total receipts from online gaming and online sports betting were $205 million in October, down 2.4 percent from September, the gaming board reported. That figure also includes online operations from tribal betting apps. However, total online sports betting handle set a new record in October at $533 million, up 20 percent from September, according to BetMichigan.com.
The strike was expected to have a significant impact on the city of Detroit but that didn’t materialize, said Detroit Budget Director Steve Watson. He said the strike cost the city about $2.5 million in lost tax revenue in October, or about $180,000 in daily tax losses compared to $450,000 in per-day losses as analysts forecasted. Prior to the strike, city budget planners expected gambling tax revenue of about $248 million for the current fiscal year, or $158 million from on-site gaming and $90 million from online wagering.
