Wynn Resorts reaches deal with Las Vegas unions, avoiding strike
By Shivansh Tiwary and Doyinsola Oladipo
(Reuters) -Hospitality workers in Las Vegas reached a tentative labor deal with Wynn Resorts (NASDAQ:WYNN) hours before a strike deadline, their unions said on Friday, ending the threat of a labor stoppage against casino operators that could have crippled tourism in the city.
The new five-year agreement covers 5,000 employees at two Wynn Resorts properties and follows similar deals for 35,500 workers with rivals Caesars (NASDAQ:CZR) Entertainment and MGM Resorts (NYSE:MGM) International earlier this week.
The deal with Wynn and the Culinary Workers and Bartenders Unions marks the end of negotiations between the unions and the largest casino operators in the city. It follows a series of successful labor actions in the automotive and entertainment industries, as workers sought wage hikes at a time when companies have enjoyed strong sales.
The unions said negotiations are ongoing with 24 smaller casinos and resorts, including properties owned or operated by Hilton Worldwide and Hilton Grand Vacations (NYSE:HGV). About 18,000 workers including cooks, bartenders and housekeepers are working under a labor contract extension. The extension has been in place since June 1 and can be terminated with a seven-day notice.
Financial details of the Wynn agreement were not immediately available, but the Las Vegas unions, considered among the most powerful in the United States, said they had secured the largest wage increases ever negotiated in their history.
«This union's gains in wage increases will certainly address the heightening income inequality that has been rising not only within this particular industry but also in the national service economy,» said Daniel Cornfield, a Vanderbilt
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