By Dave Berns, Las Vegas Review-Journal
Knight Ridder/Tribune Business News
May 28, 2002 - MGM Mirage is the latest Las Vegas casino company to
reach a tentative five-year contract with union negotiators, leaving nearly
80 percent of the city's unionized gaming work force with deals to ratify.
Financial terms of the MGM Mirage contract, which was reached at about
3 a.m. Monday, match those of agreements with Mandalay Resort Group,
Park Place Entertainment, Harrah's Entertainment and the Tropicana.
Leaders of Culinary Local 226 and Bartenders Local 165 will now turn
their efforts to negotiating contracts with 18 second- and third-tier operators
of the north Strip, downtown and Henderson.
The unions have set a Saturday strike deadline with strike preparations
continuing Monday, although it was unclear whether failure to negotiate
new deals would lead to a work stoppage.
"We have to figure that out. We have a lot of work to do," said Culinary
staff director D.Taylor.
The MGM Mirage contract was reached at the close of a nearly 12-hour
negotiating session at the company's Golden Nugget and, like the other
deals, awaits the approval of the union members.
The newest deal would see an estimated 15,000 union workers at MGM
Mirage properties each receive hourly wage and benefit increases of $3.23
1/2 over the five years, with the bulk of the money preserving health coverage.
Employers currently foot the cost of health premiums for their union members.
Union negotiators had been pushing to protect the health plan via two-year
contracts, arguing that rising health care costs and the uncertain economy,
especially after the terrorist attacks, made it difficult to reach longer
agreements.
"First and foremost, we thought from the very get-go a five-year deal
was of great importance," said MGM Mirage Senior Vice President Alan Feldman.
"The numbers make sense because we agree that protecting the benefits is
of key importance.
"We still have to be vigilant about managing health care costs. No
one's expecting them to go down over the next five years. The question
is how high will they go."
Negotiators for the two sides also worked to nail down wording dictating
how workload reductions will be managed for Bellagio housekeepers.
Culinary representatives have made the issue a top priority, arguing
that the construction of larger, more amenities-filled hotel rooms during
the past 13 years has drastically increased the daily pressure on 9,000
hotel maids.
Union sources say MGM Mirage executives were reluctant to put in writing
methods for dealing with the issue at the company's up-market Bellagio,
which expects high levels of service from its employees.
But MGM Mirage's Feldman said it was never an issue.
"We had a meeting. We listened to their concerns," he noted.
The result: MGM Mirage agreed to match the terms of the Park Place-Harrah's-Aztar
deals and will reduce housekeeper workloads on heavy checkout days and
will establish special teams to clean human waste left on hotel room walls,
floors and beds.
No vote has been scheduled to ratify the contracts, which could be
approved at the property, company or citywide level by the unions' 47,000
members. Union leaders had yet to select a method by Monday afternoon.
"We are so excited because we've almost won this fight," said Jeannett
Johns, a Golden Nugget housekeeper who is a member of the unions' MGM Mirage
negotiating committee.
Luxor housekeeper Rosemary Garcia echoed Johns' sentiment.
"We got what we asked for," said Garcia, a member of the unions' Mandalay
negotiating committee.
The two women participated in a Monday morning union event outside
of the south Strip's Showcase Mall, where an estimated 300 housekeepers
and their children handed out pro-union leaflets to passing tourists.
"Please help our moms!" began the single-page handouts. "They have
to clean too many hotel rooms every day. They get hurt on the job a lot."
The literature listed the megaresorts of Park Place, Harrah's, Mandalay
Resort Group, MGM Mirage and Aztar's Tropicana as operators who "have agreed
to help our moms so they don't have to work as hard."
"But the rest of the hotels on the Strip have not. Our moms will go
on strike on June 1st if these hotels won't sign a new union contract."
Some downtown and north Strip gaming executives privately say it will
be financially difficult for them to meet the terms of the recent deals.
Negotiating sessions are set for Wednesday and Thursday.
Several properties in the two Las Vegas gaming markets have struggled
throughout much of the past decade, with competition from new Strip megaresorts,
the growth of Laughlin, and the emergence of tribal casinos in Southern
California and the Phoenix area cutting into their revenues.
Union leaders, including the Culinary's Taylor, have said they will
not negotiate a different, less-costly health plan for the remaining properties.
"We've made it clear we're not going to have a two-tier health system,"
Taylor said.
But he also noted Monday that the union has allowed downtown operators
to phase-in compensation increases over a longer period than their Strip
counterparts.
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(c) 2002, Las Vegas Review-Journal. Distributed by Knight Ridder/Tribune
Business News. MGG, |