Vegas resorts could lose USD10 million a day if strike goes ahead
The Culinary Union has estimated a city-wide strike in Las Vegas would cost at least $10 million a day.
That’s how much it would impact Las Vegas’ two big hospitality players MGM Resorts International and Caesars Entertainment, if up to 50,000 housekeepers, cooks, bartenders and other hotel workers walk out.
The midnight May 31 deadline came and went with no definitive agreement, meaning the union can now legally walk out if no deal is agreed.
The union sees a 10% dip in revenue and a strike could also impact hockey fans heading to Las Vegas for the Stanley Cup Final.
"Furthermore, one might assume a 10 percent worsening of operating margins due to the use of less experienced and less skilled replacements … to keep the doors open, rooms cleaned, food cooked, and cocktails served, not to mention other factors such as the disruptions to management staff’s regular work," the union said.
The union is seeking a more equitable distribution of the companies’ big profits with a bump in wages, along with improvements to training and addressing other workplace issues.
MGM employs 24,000 of the affected workers and still remains confident it can seal an ‘agreement that works for all sides’ to head off the strike.
Casino resorts including Wynn Las Vegas, Encore, The Venetian and Palazzo would not be impacted.
Caesars ‘expects to agree to a new five-year contract with the Culinary Union on or about June 1.’
Last year, Sin City welcomed more than 42.2 million visitors.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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