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strike will hit operations at MGM Grand Detroit operated by MGM
Resorts International, MotorCity Casino and Hollywood Casino at
Greektown operated by Penn Entertainment.
On Sept. 29, 99% of voting workers from all unionized groups at
the three Detroit casinos voted to authorize the DCC negotiating
committee to call a strike.
Negotiations, which began in the summer, have not yielded a
contract that increases wages to keep up with inflation and
improves healthcare and retirement benefits.
When casinos struggled during the pandemic, the DCC in 2020
agreed to a three-year contract extension with 3% annual raises
but inflation in Detroit has risen 20% since then, according to
a statement on Monday from the DCC.
Industry gaming revenues have since surpassed pre-pandemic
levels, with the Detroit casino industry generating $2.27
billion in 2022, as per the negotiating committee.
The DCC estimates that if workers are forced to strike at the
three casinos, it could put at risk $3.4 million in operator
revenue per day, with the highest impact to MGM Grand Detroit at
$1.7 million.
The Detroit Casino Council is a negotiating committee made up of
five unions including Unite Here Local 24, the UAW, Teamsters
Local 1038, Operating Engineers Local 324, and the Michigan
Regional Council of Carpenters.
Unions across a range of industries in the U.S. such as rail,
healthcare have bargained for higher wages and benefits in a
tight labor market and a high inflationary environment.
The Detroit strike announcement comes as 40,000 Las Vegas
hospitality workers employed at casinos operated by MGM, Caesars
Entertainment and Wynn Resorts are engaged in talks for higher
wages and benefits.
The Culinary Workers and Bartenders Unions held a picket at
Vegas properties of MGM Resorts and Caesars Entertainment last
Thursday. They have not yet announced a strike deadline.
(Reporting by Ananta Agarwal in Bengaluru; Editing by Sriraj
Kalluvila)
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