Greektown Casino, MotorCity and MGM Grand Detroit and the Detroit Casino Council, a consortium of four labor unions, have reached a tentative agreement on a five-year contract that will cover 7,000 casino workers, who still must ratify the contract. Key issues included health care, wage increases and bonuses.
Unite Here Local 24 President Joe Daugherty said union members will be informed about contract details at informational meetings scheduled for this week. Casino spokesperson Marc Whitefield said the agreement is “a good deal for the employees, a good deal for the Detroit casino industry and a good deal for Detroit.” MotorCity Chief Executive Officer Gregg Solomon said, “It was in our collective best interest to reach an agreement that continues to allow our associates to earn the highest wages in the gaming industry, while preserving the hotel and casino operations that provide such critical tax revenue to Detroit.” And MGM Grand issued a statement that said the agreement “works for all parties.”
Under the new agreement, casino workers would receive a 2 percent wage increase in the fourth year of the contract and a 3 percent raise in the fifth year. The proposed contract keeps the same rates for existing HAP/Blue Cross health plans. Casino officials said health care costs will rise by $46 million, to $262 million, over the next four years.
In addition, full-time workers would receive a signing bonus of $4,250 and part time employees, who make up about 20 percent of the casino workforce, would receive a $3,400 signing bonus.
Negotiations began in August for a new contract to replace the one that expired October 16. Talks resumed in November for the first since October 30th, and following four days of meetings, Detroit Casino Council officials said significant progress had been made, particularly in regard to health care. UAW Local 7777 members earlier had voted to authorize a strike if the two sides could not reach an agreement. Last month casino employees rejected a proposal by Detroit’s three gambling venues.
Detroit officials have been monitoring the negotiations closely. The city’s casinos are a huge tourism attraction as well as a major area employer and one of the main tax generators. Nearly $3.3 million a week, or $170 million annually, comes from casino tax revenue–about 16 percent of the city’s total revenue.
The Detroit Casino Council includes members of UAW Local 7777, UNITE HERE Local 24, International Union of Operating Engineers Local 324 and Local 372 labor unions and Teamsters.
