New Contract Gets Approval from MGM Workers

By Jane Shaw Senior Editor Updated: 12/16/2023

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MGM Workers

In a landmark decision, MGM Resorts hospitality employees in Las Vegas overwhelmingly voted in favor of a new labor agreement recently, marking a significant victory for the Culinary Union. The contract, which was approved by an impressive 99% majority, signals a new era of improved working conditions and financial benefits for a substantial number of workers in the company’s hospitality sector.

The newly agreed contract covers approximately 25,400 hospitality workers. It includes a comprehensive package of salary increases and enhanced working conditions, with many expressing their delight about the changes. Melissa Peterson, a cocktail server at the Bellagio, described the sentiment of many workers by describing the contract as ‘amazing for everyone that works here.’

Immediate Salary Increases and Long-Term Benefits

Under the terms of the agreement, Culinary Union workers will receive an immediate 10 percent salary increase, retroactive to the previous June. Over the five-year span of the contract, this will equate to a 32 percent salary hike. This substantial financial uplift could lead to a significant improvement in the standard of living for the workers.

The contract extends to a wide range of unionized workers at MGM properties, including housekeepers, cocktail and food servers, porters, bellmen, cooks, bartenders, and laundry and kitchen staff.

In a forward-thinking move, the contract also addresses the potential risks posed by technological advancements, specifically artificial intelligence (AI). MGM properties are now obligated to provide a six-month notice prior to implementing any new technology that could lead to job losses. This provision reflects a growing awareness of the potential impact of AI on employment and provides a safety net for workers.

Ted Pappageorge, secretary-treasurer of the Culinary Union, said:

AI learns, and if it’s introduced now, but there’s no effect, and later there is one that could eliminate jobs, we’re able to go back, and our language kicks in.

The agreement also emphasizes the importance of continuous learning and career advancement by including provisions for additional training opportunities for unionized workers. This focus on professional development is a key aspect of the contract, enabling workers to enhance their skills and career prospects.

Negotiations Set Precedent for Other Las Vegas Hospitality Workers

The success of the MGM Resorts contract has set a precedent for other hospitality workers in Las Vegas and possibly beyond. Following this, workers at Caesars Entertainment properties also approved their new contract, and Wynn Resorts employees are poised to vote on their agreement in the near future.

The Culinary Union aims to replicate the economic package of the MGM Resorts contract in upcoming negotiations with other Las Vegas properties, including those located in the downtown area.

This overwhelming approval of the new contract at MGM Resorts represents a crucial moment in labor relations within the hospitality industry in Las Vegas, and it could spell good news for other workers within the industry, according to officials.

The new contract not only improves the immediate working conditions and financial status of thousands of workers but also sets a precedent for future labor negotiations in the industry.