tenmilemedia/iStock via Getty Images
Union members at two casinos in Detroit voted to ratify a new labor contract and end what was a short strike that did not disrupt operations to a large degree. Workers at MotorCity Casino and Hollywood Casino at Greektown voted in favor of the new contract, but workers at MGM Grand Detroit rejected the tentative deal and will continue to strike.
“This is 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,” stated MGM Resorts Midwest Group Chief Operating Officer Matt Buckley. The tentative deal included not only the largest wage increases ever negotiated in the Detroit casino industry’s 23-year history, but also set up workers for no no health care cost increases, workload reductions, and other job protections.
During the recent earnings conference call (transcript), MGM (NYSE:MGM) executives noted that higher labor costs would be a drag on margins in 2024, but the higher cost of cybersecurity insurance was a bigger talking point in assessing the expense and inflation backdrop.