The casino field in Las Vegas is threatened by one of the largest strikes of casino employees in the last 30 years and this move has the potential to cripple the field and this estimation was reached soon after the official voting in support of the strike. This Wednesday brought the news that the strike of casino employees might be able to hit the industry’s two largest casino operators with as much as $10 million in losses for every single day it lasts.
Thousands of casino and hotel workers in Las Vegas approved of strike action if their contracts are not renewed by the end of the month. In a two-session vote on Tuesday, 99 percent of the workers said they authorize the union to call a strike that may close dozens of resorts and casinos in the city, known until a few years ago as the gambling capital of the world. Since the last days of May are set to see the expiration of their working contracts new terms and conditions should be negotiated and they should be renewed.
Among the people willing to go out on a strike are people hired at positions ranging from bartenders and housekeepers cooks and other kitchen helpers to cocktail and food servers, porters, and bellmen. Thousands of workers, represented by the largest labor organization in Nevada, are preparing to walk off their job, crippling some of the largest and most visited casino resorts across the city. The properties that may be affected by a possible strike include Caesars Palace, Bellagio, MGM Grand, Planet Hollywood, The D, Stratosphere, and El Cortez.
The Union Protects Workers’ Rights
The potential first day of the strike could be the 1st June since the voting which took place earlier this month authorized the Culinary Union to call for a strike at any time. According to the estimations, the two most prominent casino operators MGM Resorts and Caesars Entertainment which would be affected by it could be losing a minimum of $10 million combined every single day it lasts.
This amounts to almost a 10-percent decrease in their revenue which will be clearly visible once it is time for their monthly revenue reports and year-on-year comparison. Over the span of one month, MGM Resorts has the potential to lose as much as $206 million of its earnings before interest, taxes and other items. The driving force behind this strike is the underlying fear that many of the positions currently occupied by human employees in the Las Vegas resorts could potentially witness a shift towards technologically advanced robots which to do the job in a faster manner.
One of the measures taken by the Union was the call for special trainings available for the employees which to teach them new skills related to their particular employment, as well as new and more job opportunities. There is the possibility that even if people are replaced by the new robots, they could be educated to fix or program the new technology and maintain their current employers.
As for the current wages employees receive, as much as 4-percent was the proposed increase which the Union aimed at MGM Resorts, whereas the employees of Caesars Entertainment are looking for a 4.2-percent increase. The following days will see a development of the situation.