The new five-year deal covers about 12,000 workers at nine casinos in Las Vegas. Union workers bet on themselves and won. The Culinary Union announced Friday, June 1, a tentative, five-year labor agreement with Caesars Entertainment Corp. (CZR) - Get Report that staves off a potential strike that would have seen about 12,000 workers at nine casino resorts on the Las Vegas Strip walk off the job. The fate of another 24,000 workers was still up in the air as negotiations between the union and MGM Resorts International (MGM) - Get Report were still ongoing. The union is reportedly seeking a 4% annual wage increase from MGM for its new five-year contract. The company countered that offer with a 2.7% annual increase, according to the union. Caesars' workers were reportedly looking for a 4.2% increase this year and annual increases of 4% after. Caesars countered that offer with a 2.8% increase for each of the five years. It has not been announced what the final terms of the deal are. Currently, the average union worker makes $23 an hour, including premium health care, a pension and a 401(k) as well as a $25,000 down payment assistance for first-time homebuyers. Caesars shares were up 1.65% in premarket trading. MGM Resorts shares were down 1.37%.<doc-sep>Las Vegas’ two largest casino operators are trying to bridge a roughly $110 million wage and benefit gap with union workers as 36 hours remain until employment contracts officially end. Culinary and bartender union workers leave the Thomas & Mack Center in Las Vegas on Tuesday, May 22, 2018, after voting whether they want to go on strike. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye Las Vegas’ two largest casino operators are trying to bridge a roughly $110 million wage and benefit gap with union workers before employment contracts officially end at midnight Thursday. The five-year contracts affect about 50,000 Las Vegas hospitality employees, including bartenders, servers and housekeeping staff at 34 resorts on the Strip and downtown. Negotiators for union workers are threatening to call a strike if an agreement isn’t reached by the deadline, potentially impacting tens of thousands of guests expected to arrive at the beginning of June for conventions and hockey games. MGM Resorts International and Caesars Entertainment Corp., the two largest resort operators by employment, have said they expect to reach a deal and avoid the first citywide strike in more than three decades. A monthlong strike could cost MGM Resorts and Caesars as much as $300 million in cash flow, according to a report Wednesday by UNITE HERE Gaming Research, the research unit of the hospitality workers’ union. The calculation assumes a 10 percent drop in revenue and a 10 percent decline in margins. 4 percent In a statement Wednesday, Culinary Local 226 and Bartenders Local 165 said they are seeking an average annual increase of 4 percent over the next five years in workers’ wages and benefits, such as health care and pensions. “We are asking for one-dollar raise in the first year,” Francisco Ruffino, a Caesars cook, said in the union statement. “A one-dollar raise for 12,000 of us will cost less than what the company paid the CEO last year.” Caesars CEO Mark Frissora received $23.9 million in total compensation last year after helping the company emerge from two-year bankruptcy proceedings. That was 600 times more than the median salary of a Caesars employee. Caesars spokesman Rich Broome declined to comment Wednesday. MGM Resorts CEO Jim Murren took home $14.6 million in total compensation, or about 400 times as much as the median for its employees. An MGM spokeswoman said Wednesday the company is “confident that we can resolve the outstanding contract issues and come to an agreement that works for all sides,” but she did not comment on CEO compensation. The unions said MGM Resorts and Caesars are offering an average annual increase of about 2.7 percent. The two companies operate 18 of the resorts impacted by the talks, and their settlement with the union would set the standard for the remaining operators. A 4 percent increase in wages and benefits is “probably a little bit on the high side,” said Union Gaming analyst John DeCree. However, with consumer price inflation hovering around 2 percent and expected to stay around there in the coming years, “somewhere in the 3 percent range is reasonable.” U.S. wage growth Union workers received an average annual increase in salary and benefits of about 2.2 percent over the past five years, according to the unions’ statement. By comparison, U.S. private, non-farm hourly wages rose on average 2.5 percent a year over the past five years, while U.S. leisure and hospitality workers received an average hourly wage increase of 3.4 percent a year, according to the Bureau of Labor Statistics. Contract negotiations in 2013 came amid a battered local economy struggling to emerge from the worst economic downturn in decades. MGM Resorts and Caesars were handcuffed by a mountain of debt racked up during the booming 2000s. This time around, the casino operators — and their properties — are in their best shape in more than a decade. They have completed upgrades costing billions of dollars and reduced their leverage. Their share prices have rebounded. Now they are returning money to shareholders for the first time since the financial crisis and awarding executives. MGM Resorts this month announced it would buy back $2 billion of its shares over the next three years, equivalent to more than 10 percent of the company. Caesars announced it would purchase $500 million of its shares, or about 6 percent of the company. The unions are seizing on the buybacks, executive pay and corporate tax cuts that go into effect this year to demand an increase that would likely be above the U.S. average this time around. Contact Todd Prince at 702-383-0386 or tprince@reviewjournal.com. Follow @toddprincetv on Twitter.<doc-sep>Culinary Workers Union Local 226 and Caesars Entertainment have reached a tentative five-year labor agreement that is expected to avert a strike that could have crippled Southern Nevada’s resort corridor. Culinary Union organizers make strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizer Lianna Schechter carries strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizer Mark Noonkester makes strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizer Guy Locatelli carries strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizer David Saba carries strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizer David Saba moves strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizers Ermila make strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizer Ermila Medina makes strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco Culinary Union organizers Jorge Ortiz, left, and Hannah Schmitt wrap together strike picket signs at the newly opened “Strike HQ” at the intersection of Wyoming Avenue and Fairfield Avenue in Las Vegas, Friday, June 1, 2018. Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco The threat of a crippling strike in the city’s resort corridor might be averted. With a tentative five-year labor agreement established by Culinary Local 226 and Bartenders Local 165 with Caesars Entertainment Corp., the focus of labor negotiations now shifts to the other big Strip player: MGM Resorts International. A union representative said negotiations with MGM would resume Saturday. Still, more than 100 union members, most of them clad in red T-shirts, rallied at their “Strike HQ” Friday to make hundreds of picket signs declaring a walkout of MGM properties. Picket maps Maps showing where pickets would be stationed outside MGM properties were taped to the walls at the work area, while laborers rehearsed union slogans. MGM officials issued a statement late Friday but gave no indication when they expected the talks to resume or a settlement to be reached. “We’ve made good progress in resolving the remaining issues, and we are scheduling more negotiations to allow these productive talks to continue,” an MGM spokeswoman said in an email. “We remain dedicated to negotiating a contract that demonstrates our commitment to employees and their families while our company continues creating good jobs and future opportunities in Las Vegas. We remain confident that we will reach an agreement.” Caesars, the second-largest Strip employer by number of workers, reached a deal early Friday. Union members would have to ratify the contract in an as-yet-unscheduled vote. “We are pleased to announce that a tentative agreement has been reached with @CaesarsEnt,” Culinary communications director Bethany Khan tweeted at about 3:30 a.m. Friday. “The historic new five-year deal covers approximately 12,000 workers at nine casino resorts on the Las Vegas Strip.” Caesars and MGM represent about half the 50,000 workers whose contracts expired at midnight Thursday. Penn National Gaming, Golden Entertainment and Boyd Gaming are among the other companies with properties awaiting new contracts. Several Station Casinos properties have voted for union representation, but have yet to draft initial contracts. Among the largest properties where contracts have expired that are not a part of larger casino groups are the SLS Las Vegas, Treasure Island and the Westgate as well as downtown’s Golden Nugget, Plaza, Four Queens, Golden Gate, D, Downtown Grand and El Cortez. Details not announced Details of the settlement have yet to be announced. Caesars and the unions were expected to issue a joint statement Friday afternoon, but that was delayed. “We feel very good (about the tentative agreement),” said Geoconda Arguello Kline, secretary-treasurer of the Culinary union. “We feel the company will continue to be successful, and the union members will continue to have the American dream,” she said as her colleagues built picket signs. “We’re going to have a ratification vote for the members in their committees, and the members will know all the details of the contract. In respect to them, we’ll wait until after ratification to give the details.” Union officials met with Caesars’ management team Thursday and early Friday and indicated meetings with MGM would be next. Negotiators have been in contract talks since February. About 99 percent of 25,000 workers voted May 22 to authorize a strike after contracts expired. Union leaders have the authority to order a walkout at any time. Union pressure Many labor and industry observers viewed the vote and union strike preparations as a means of applying pressure on resort management to complete contract talks. Caesars and MGM operate 18 of the 34 resorts that would be impacted if bartenders, guest room attendants, cocktail servers, food servers, porters, bellman, cooks and kitchen workers who are employed at the casino resorts on the Strip and downtown Las Vegas were to walk off the job. The casino operators have repeatedly said over the past two weeks that they expect to reach an agreement with the unions and avoid a strike that could leave guests struggling to get clean sheets and order food and drinks. The unions have been seeking an average annual increase of 4 percent over the next five years in workers’ wages and benefits. That equates to an increase of roughly $1 an hour for union employees. MGM and Caesars were offering an average annual increase of about 2.7 percent, according to the unions. Consumer price inflation is forecast to grow at an annual average rate of 2 percent in the coming years. The unions also have sought additional safety measures for workers who occasionally come in contact with resort customers in hotel rooms. Strengthening sexual harassment policies regarding contact with customers also has been an issue. Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter. Review-Journal staff writer Todd Prince contributed to this story.<doc-sep>
UPDATE JULY 11: The Culinary Union announced their new deal with Tropicana hotel-casino late-Tuesday night. 🚨BREAKING🚨 We are pleased to announce that a tentative agreement has been reached with @TropLV! This historic contract covers 730+ workers. A ratification vote will be scheduled soon. Negotiations continue for: 13 casinos & 7,220 workers. ✊🏾✊🏻✊🏿✊✊🏼 #OurFutureIsNow pic.twitter.com/OLXx2AQLsb — The Culinary Union (@Culinary226) July 11, 2018 They say this contract will cover more than 730 workers. Negotiations continue for 7,200 workers at 13 other casinos. UPDATE JUNE 2: Union workers say they have reached a tentative agreement with MGM Resorts International, covering nearly half of the 50,000 employees threatening to strike in Las Vegas. 🚨BREAKING🚨We are pleased to announce that a tentative agreement has been reached with @MGMResortsIntl. The historic new 5-year contract covers approximately 24,00 workers at 10 casino resorts on the Las Vegas Strip. ✊🏽✊🏻✊🏿#OurFutureIsNow (More details to follow) pic.twitter.com/2uJMFowRtf — The Culinary Union (@Culinary226) June 3, 2018 UPDATE JUNE 1: The Culinary Union reached a tentative agreement with Caesars Entertainment shortly after their deal expired at midnight on June 1. 🚨BREAKING🚨We are pleased to announce that a tentative agreement has been reached with @CaesarsEnt. The historic new 5-year deal covers approximately 12,000 workers at 9 casino resorts on the Las Vegas Strip. ✊🏽✊🏻✊🏿#OurFutureIsNow (More details later today) pic.twitter.com/b3hF8WDxWJ — The Culinary Union (@Culinary226) June 1, 2018 The union will now seek a deal with MGM properties, other Strip properties and Downtown Las Vegas. Culinary Union’s Geoconda: @MGMResortsIntl workers play a big part in making the company successful. Workers deserve to have a fair share of that success. @CaesarsEnt workers will not strike now that they have a tentative agreement, but they will be on the picket line to support. pic.twitter.com/QhOPhA62cS — The Culinary Union (@Culinary226) June 1, 2018 @Culinary226 workers are settting up Strike HQ. @MGMResortsIntl and many downtown hotels still haven't come to an agreement with union on contracts that expired at midnight. @KTNV pic.twitter.com/OlAsn3xYGY — Lesley Marin (@lesleymarin) June 1, 2018 Here is a map of the properties involved. There are 25 properties that still don't have contracts with about 50,000 workers. Members at the Culinary Union headquarters worked fast to put together picket signs as they get ready for the possibility of a strike. There is no set date yet but the union saying they'll decide as a whole when the strike will happen. They don't plan on calling one this weekend. The union says going on strike is its last resort. They want to keep pushing on negotiations. But MGM Resorts has not called yet to schedule any meeting. ORIGINAL STORY: With contracts at 34 Las Vegas properties now expired the Culinary Union says its 50,000 members are ready to strike. 🕛Midnight update: Contract negotiations ongoing with @CaesarsEnt. No deal has been reached. The Culinary Union has *not* yet called for a strike walkout. 🚨Friday, June 1: Strike HQ opens at 10am. Media, RSVP to @BethanyKhan for access and details. pic.twitter.com/mrJfSAM3wq — The Culinary Union (@Culinary226) June 1, 2018 "We are going to call the strike when we say we need to go on strike," said Geoconda Argüello-Kline, Secretary-Treasurer for the Culinary Union. As they continue planning for a strike, the union is setting up a strike headquarters near their regular office. RELATED: A look at Culinary Union's history and how a strike could affect Las Vegas The union says a 30-day strike could cost the MGM Resorts and Caesars Entertainment a total of $300 million. Experts say they don't really know what kind of impact a citywide strike would have. "It hasn't happened in over 30 years, so we don't have a huge baseline here to judge what is going to happen," said David Schwartz with the UNLV Center for Gaming Research. "Likely as people have their travel plans interrupted or their vacation plans interrupted. They'd get frustrated and may not come back." The negotiations on contracts continued late into the night Thursday as the final minutes of the current contract wound down. The contacts cover 50,000 employees serving 34 Las Vegas Strip Casinos and downtown locations expires at midnight, June 1. Union leadership says they are planning to strike to certain demands are not met, including livable wages, improved benefits package and job security. MGM Resorts International released this statement: "We are confident that we can resolve the outstanding contract issues and come to an agreement that works for all sides." – MGM Resorts International Caesars Entertainment released this statement: