© Reuters.
LAS VEGAS – Employees of MGM Resorts (NYSE:) International are poised to ratify a landmark five-year labor agreement today, following the overwhelming approval of a similar contract by Caesars (NASDAQ:) Entertainment workers on Sunday. The agreements come amid ongoing negotiations for 15,000 workers at independent casinos in Las Vegas, with potential strike action looming.
The MGM contract offers substantial benefits to the Culinary Local 226 Union members. It includes a significant first-year wage increase of 10%, retroactive to June, with hourly wages anticipated to rise from an average of $26 to $35 over the contract’s term. Secretary-Treasurer Ted Pappageorge highlighted the historic nature of the agreement, pointing out reductions in workloads and technological safeguards for employees.
In a proactive response to the growing influence of AI and robotics in the hospitality industry, the MGM deal sets forth advance notice requirements for new technology implementation and provides training options for affected staff. Additionally, severance terms offer $2,000 per year of service, along with extended health and pension benefits.
These employment protections were underscored by Pappageorge as essential due to the unpredictable impact of AI on jobs within Strip resort companies. If layoffs occur due to technological advances, employers must give six months’ notice and financial support for retraining alongside the severance package.
Meanwhile, Wynn Resorts (NASDAQ:)’ employees are gearing up for their own contract vote following successful negotiations that averted strikes during the high-profile Las Vegas Grand Prix race weekend. This sequence of agreements reflects a broader trend towards securing better terms for workers in an industry facing rapid technological change.
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