Dive Brief:
- Some 700 union workers at Virgin Las Vegas walked off the job Friday morning for an open-ended strike, according to the Culinary and Bartenders Union Local 226, known collectively as the Culinary Union.
- Virgin Las Vegas employees are pushing for new five-year contracts similar to those won by their fellow union members at other Las Vegas properties earlier this year and last fall, which included “historic” wage increases, per the Culinary Union.
- The walkout is the first Culinary Union strike in Las Vegas in 22 years, and is taking place ahead of Formula 1’s Las Vegas Grand Prix, which brought $220 million in revenues to area hotels last year, according to CoStar.
Dive Insight:
The Culinary Union decided to proceed with its proposed strike Thursday night, after final negotiations with Virgin Hotels Las Vegas failed to result in an agreement.
In a statement obtained by Hotel Dive, Virgin Las Vegas Hotels said: “It is disappointing that the Culinary Union ended today’s requested meeting without engaging in meaningful bargaining with Virgin Hotels Las Vegas.”
In negotiations, Virgin said it offered to “bring forward a portion of the wage increase that was previously proposed for years four and five so that there are no longer zero increases in the first three years.”
Culinary Union Treasurer-Secretary Ted Pappageorge said the proposal worked out to “an estimated $0.30 per year to wages over five years after deducting money for benefits, compared to non-tipped workers at [Las Vegas property] The Strat, who received over $4.00 an hour in wage increases this year alone.
“Virgin Las Vegas’ proposal is miles apart and is an insult to every worker — which is why the committee voted unanimously to refuse to settle for a second-class contract,” he added, in a statement.
The strike will impact “all major areas of operations” at Virgin Las Vegas, including housekeeping; food and beverage; and unionized restaurants Casa Calavera, Funny Library Coffee Shop, Juice Bar, The Bar at Commons Club, The Kitchen at Commons Club and The Shag Room, the Culinary Union said.
Formula 1’s Las Vegas Grand Prix begins Nov. 21. MGM Resorts International CFO said in a third-quarter earnings call that this year's event will have a smaller impact than 2023’s, but still “bring significant economics to MGM during what has historically been one of the slowest weekends of the year.”
Last November, thousands of union workers in Las Vegas won wage increases at resorts operated by MGM, Caesars Entertainment and Wynn Resorts. Earlier this year, union workers in the city won further contracts to increase wages at resorts including Waldorf Astoria Las Vegas, Downtown Grand Hotel & Casino and Circus Circus.
Meanwhile, Culinary Union affiliate Unite Here has been staging nationwide hotel strikes since September. Thus far, Unite Here members have won higher wages in Hawaii, Massachusetts and California.
