In a landmark move, the hospitality union has secured tech limits in a contract with Caesars (NASDAQ:CZR) Entertainment Inc. The agreement stipulates a six-month notice period for the introduction of any AI or technology that could potentially displace workers. Additionally, it ensures retraining for those whose roles may be affected by these technological advancements. The contract, which is currently awaiting approval from 10,000 union-represented workers, has been hailed by Ted Pappageorge of Culinary Workers Union Local 226.
This development marks the resolution of a labor standoff that had threatened to culminate in strikes at multiple venues. However, MGM Resorts (NYSE:MGM) International and Wynn Resorts (NASDAQ:WYNN) Ltd., which collectively employ 25,000 workers, still face potential strikes if no agreements are reached by Friday.
As part of the agreement with Caesars, daily room cleaning services that were discontinued during the Covid-19 pandemic will be reinstated. This move is expected to mitigate the job cuts and increased workloads that resulted from the suspension of these services. Any modifications to existing tech use will now require a 30-day notice.
The contract also includes undisclosed wage hikes. It's worth noting that technology has already replaced several roles within the industry, including cash handlers. With this new agreement, however, workers can expect more security and support as the hospitality industry continues to grapple with the implications of rapid technological advancement.
On Wednesday, Nov 8, in a virtual press conference, the Las Vegas Culinary Union disclosed a tentative agreement with Caesars Entertainment but warned of a looming strike if no agreements are reached with MGM and Wynn Resorts by Friday, Nov. 10. Union leader Ted Pappageorge urged MGM to replicate the Caesars deal addressing job security, improved benefits, better pay, and working conditions. MGM Resorts CEO Bill Hornbuckle was present during this announcement and an earnings call took place.
Negotiations with Wynn Resorts are scheduled to proceed on Thursday, Nov 9. The potential strike has raised concerns among tourists about the possible impact on the Strip’s service industry, predicting unclean rooms and reduced staff. Visitors from Canada and Seattle have expressed concerns and considered trip cancellations due to possible wage dissatisfaction leading to a less enjoyable time in Vegas. This situation underscores the importance of reaching agreements that balance both workers' rights and the hospitality industry's need for technological advancement.
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