On June 27, the Venetian and Palazzo resorts on the Las Vegas Strip announced that they had entered into neutrality agreements with several of the state’s most prominent labor unions, including Culinary Workers Local 226, Bartenders Local 165, Teamsters Local 986 and Operating Engineers Local 501.
The announcement signified the end of a longstanding feud between the unions and the previous owners of the two casinos, the Las Vegas Sands Corp., which held out against unionization efforts for decades before selling the properties to Apollo Global Management in 2019.
Additionally, the two casinos were the last on the Stip without a deal with Culinary, although the Nevada Independent cited an anonymous source saying that the union was already secretly representing an unknown number of Venetian Expo staff.
By entering into neutrality agreements, the properties effectively agreed to stand aside and allow the labor groups to organize non-gaming staff without interference.
According to details reported by the Independent, an election through the National Labor Relations Board is not needed but a card-counting process would need to be overseen by a third party to ensure a majority. Only then would contract negotiations take place.
Despite years of unsuccessful unionization attempts, the organizations saw new hope following the sale of the casinos to Apollo, as the two sides have a good relationship in Las Vegas and elsewhere.
“Our unions have historically worked with Apollo Global Management in Las Vegas and in other major metropolitan areas across the United States and we are hopeful as thousands of workers, employed at the only two non-union casinos remaining on the Las Vegas Strip, will have the opportunity to choose whether to unionize while management remains neutral and respects their choice,” the groups said in a joint statement.
Of the two properties, the Venetian opened first in 1999, with the Palazzo following in 2007—there are approximately 8,000 employees between them, but it is unclear at this time how many would fall under representation from the unions.
A spokesperson for the Venetian told the Independent that the casino “has a long history of respecting our team members and putting their needs and interests at the center of our decision-making process,” which was the motivating factor for the new agreement.
Despite the latest deal, however, the labor conversation in Las Vegas is just beginning, as the three major operators on the Strip—MGM, Wynn and Caesars—are all still in the process of negotiating new five-year labor contracts with Culinary and others after their previous contracts expired back on June 1.
Across the three companies, the unions represent some 38,000 employees, who are looking for marked wage and benefit increases to keep pace with rising inflation and living costs. The most recent contract was negotiated and agreed to back in 2018.
Many across the industry had anticipated a contentious battle this time around, after the two sides traded barbs during a series of legislative hearings back in April. Those hearings had to do with room cleaning requirements and the possible formation of a state lottery; the unions wanted to keep Covid-era policies in place and supported a potential lottery whereas operators staunchly opposed both.
Some union officials, including Culinary Secretary-Treasurer Ted Pappageorge, also criticized the fact that the industry brought in a record $14.8 billion in statewide revenue last year but most operators chose to pare down debt and pay dividends rather than invest in their employees.
However, the conversations have been relatively tame and tight-lipped thus far, with little details about the process that first began back in the spring. The unions have not declared any ultimatums or deadlines due to the complexity and nuances of each negotiation, and temporary extensions have already been reached with most operators for the time being.
On June 22, Culinary spokeswoman Bethany Khan said in a statement to the Independent that there have been two rounds of “big table” discussions with the three companies thus far, which includes more than 40 subcommittee meetings.
Pappageorge also sent a statement to the outlet saying that he hopes “industry leaders work closely with the negotiating committee to come to fair agreements to share in this incredible recovery. We must prepare to do whatever it takes to achieve these fair contracts if the companies do not agree.”
The union indicated that the negotiations are centered around four major topics: industry growth, employee workload, safety and a benefits package.
Of the three major operators involved in the discussions, Caesars is the only one yet to address the matter publicly. During the company’s first-quarter earnings call in May, CEO Tom Reeg told investors that there would be “a significant raise for our frontline workers and they deserve it,” and added that the company “built those results on our frontline employees so they deserve to share [in] it.”
Both Wynn and MGM declined to comment to the Independent.
Interestingly, the only other high-profile operator that has offered any speculation about the contract talks is Red Rock Resorts, which has had a legendary decades-long feud with Culinary and has opposed unionization at its properties overall. Red Rock President Scott Kreeger noted during his company’s first-quarter call that once the new contracts are agreed to, it will “set a new bar” and “have some effect across the valley.”
Kreeger also noted, however, that Red Rock had already priced in wage increases for its staff as part of its economic projections. The company also plans to hire over 1,000 employees for its Durango Station casino project, set to open by the end of the year.
Economic and investment analysts have begun to make various predictions as to how the new contracts may impact profits—most have acknowledged that operators’ financial strain is highest during the first year after the new deals take effect, as that is when wages usually make the most significant jumps.
The last industry-wide strike organized by Culinary was all the way back in 1984, which involved 17,000 workers across 32 properties. That strike lasted for nine months, after which six casinos severed ties with the organization.
A similar strike was authorized in 2014 for 10 downtown Las Vegas properties, but new deals were reached before the walkout took place.
