MGM Resorts recently reached a major agreement with several Las Vegas labor unions that averted a planned strike and secured a five-year contract for thousands of workers.
The agreement, which was announced on Thursday, was negotiated by the Culinary Workers Union Local 226, the powerful labor group that represents approximately 25,000 workers in Las Vegas. It provides for wage increases, health and retirement benefits, and job security for eligible workers.
MGM Resorts will pay out an average 9.7 percent increase in wages for the next five years, followed by a 4.7 percent bump in the fifth year. The agreement includes an additional $2.50 an hour for housekeepers starting in 2019.
The deal also allows for the hiring of more workers and establishing better work standards for jobs such as housekeeping. Additionally, MGM Resorts will establish a flexible scheduling system, allowing workers to pick up more shifts.
MGM Resorts Chief Executive Officer Jim Murren called the new deal “a major win for our employees” and thanked the labor unions for their commitment to working out a fair agreement.
Not only did the agreement avert a planned strike, it has also set a good example for Las Vegas’ hospitality industry as a whole. With this new labor contract, Las Vegas will be able to attract more conventions, boost tourism levels, and help drive the local economy.
The Culinary Workers Union Local 226 Secretary-Treasurer Geoconda Argüello-Kline said in a statement, “This contract is about building a better future for thousands of hard-working families in Las Vegas and setting standards that will have a lasting impact on the hospitality industry.”
The union had planned to launch a strike affecting all MGM Resorts properties in Las Vegas if a new contract had not been reached. The threat of such a strike would have had a far-reaching impact and could have dealt a major blow to the economy in the city.
It is clear that the deal reached between MGM Resorts and the labor unions was in the best interest of the city and of the workers. This agreement ensures that Las Vegas will remain a popular and thriving destination for years to come.