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F1 Crisis In Vegas Averted As MGM Reaches Agreement With Employee Union

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2023-11-11

F1 Crisis In Vegas Averted As MGM Reaches Agreement With Employee Union

The specter of a frazzled VP of Player Ops spilling a tray of $36 daiquiris on Formula 1 champ Max Verstappen’s tailored suit was negated early Thursday morning, as a union representing 25,000 workers at eight MGM properties in Las Vegas announced that it had reached a tentative deal with the casino giant.

The agreement averts a strike that would have come in the wee hours of Friday morning.

Las Vegas is preparing to host its first F1 race since 1982. The grand prix is expected to attract some 100,000 visitors to Sin City next week, an undertaking that might not have gone smoothly had some 40,000 members of Culinary Workers Union Local 226 and Bartenders Union Local 165 declined to work for lack of a contract.

Ten thousand of those workers reached a deal with Caesars on Wednesday, while Wynn has until 5 a.m. Friday to come to terms with 5,000 union employees at its two properties.

Earlier this week, the Nevada Current reported that MGM was preparing to have its management team (which is not unionized) stir, shake, and serve cocktails to multimillionaire VIPs and grease monkeys alike if it couldn’t come to terms with its culinary employees — a ploy that drew snickers from observers.

“Try and knock out thousands of meals daily on systems you do not understand. It is embarrassing, funny, and somewhat dangerous,” US Bets contributor and longtime gaming executive Richard Schuetz told the Current. “The union has massive leverage because of F1, and they know it.”

‘Best contract ever’

Once Caesars and its workers came to terms on Wednesday, it was expected that MGM would follow suit. Even still, with the hot rods set to hit the paddock, the brinksmanship was unnerving.

“Historically, this is pretty much how it always goes: As soon as one company reaches a deal, the others just fall right in line,” UNLV associate professor Bill Werner told the Associated Press. “I would say this is as close as we’ve come in a long time to an actual strike.”

As with Caesars, a final labor agreement with MGM was reached after a marathon 20-hour negotiating session that followed seven months of back-and-forth.

BREAKING: After nearly 20 hours of negotiating, Culinary Union is pleased to announce a Tentative Agreement towards a new 5-year contract has been reached w/@MGMResortsIntl for approx 25,400 hospitality workers at 8 Vegas properties. Statement forthcoming. #OneJobShouldBeEnough pic.twitter.com/woVufUNkTR

— Culinary Union (@Culinary226) November 9, 2023

According to a union press release, the agreement with MGM includes the largest wage increases in the culinary union’s 88-year history, workload reductions for guest room attendants, mandated daily room cleaning, increased safety protections for workers, and the right of unionized workers to support non-union restaurant workers seeking to unionize.

“Tonight, we won the best contract ever that we deserve and I’m so happy,” said Shaleah Taylor, a guest room attendant for the MGM-owned Aria Casino. “The credit reduction is very important to my daily workload because it means having less check out rooms on a busy day, which will help me have a more manageable day and more energy for my family when I get home from work. With these new wage increases, I can feel secure knowing that I can provide for my four children and my elderly mother who lives with me.”

Additional reporting by Matt Rybaltowski

Photo: Ethan Miller/Getty Images

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