Negotiations between workers and management at MGM Grand Detroit are ongoing after employees rejected a proposed agreement for new contracts. The rejection follows a recent vote in favor of tentative deals by casino workers at MotorCity Casino and Hollywood Casino at Greektown. Despite these developments, workers at MGM Grand Detroit remain on strike, prompting union leaders to collaborate with a federal mediator in the pursuit of a revised contract.
Context of the Negotiations:
Members of the Detroit Casino Council (DCC), comprising 3,700 employees across Detroit’s three casinos, are at the center of the ongoing negotiations. Earlier this month, MotorCity Casino and Hollywood Casino at Greektown reached tentative agreements that were accepted by their respective workers. However, workers at MGM Grand Detroit, represented by the DCC, rejected the proposed deal, marking the first strike in the history of the council.
Terms of the Proposed Contract:
According to the DCC, the five-year contract offered an immediate $3-an-hour raise for those who voted in favor and a subsequent $5-an-hour raise over the contract’s duration. Despite the rejection, negotiations are ongoing to address the concerns raised by workers and find common ground.
Unprecedented Strike and Union Representation:
The strike at MGM Grand Detroit represents an unprecedented development for the DCC, which encompasses five labor unions: UNITE HERE Local 24, UAW, Teamsters Local 1038, Operating Engineers Local 324, and the Michigan Regional Council of Carpenters. The collaborative efforts of these unions reflect a united front in addressing the labor concerns within the casino industry.
Financial Impact and Industry Context:
In October, the three Detroit casinos collectively reported $82.8 million in monthly aggregate revenue (AGR), representing a 19% decline from September’s $101.6 million. This economic context adds urgency to the ongoing negotiations as both workers and management seek to navigate challenges within the evolving landscape of the casino industry.
As negotiations persist, the rejection of the proposed contract by MGM Grand Detroit workers underscores the complexity of labor relations within the casino sector. The DCC’s historical strike and ongoing talks with a federal mediator highlight the importance of addressing workers’ concerns while ensuring the viability of the industry. The resolution of these negotiations will not only impact the affected workers but will also serve as a precedent for future labor agreements within the Detroit casino landscape.