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Culinary Union Leaders Reach Preliminary 5 Year
Deals with Park Place and Harrah's
By Dave Berns, Las Vegas Review-Journal
Knight Ridder/Tribune Business News 

May 24--Las Vegas still faces the threat of its first major gaming strike in 18 years despite Thursday's announcement that tentative union deals had been reached with three major casino companies, a top union official said. 

Prospects of a costly work stoppage hinge upon the success of continuing negotiations with executives of MGM Mirage, Mandalay Resort Group, Boyd Gaming and the operators of smaller gaming properties, said Culinary Local 226 staff director D. Taylor. 

"I don't think we have averted a strike. That's premature, and it would be hyperbole to say that," Taylor said. 

Culinary leaders reached preliminary deals Thursday with their counterparts at Park Place Entertainment, Harrah's Entertainment and Tropicana-owner Aztar Corp. 

The agreements would see 16,500 union workers at the companies' eight Las Vegas megaresorts receive an increase of $3.23 1/2 an hour over the life of the five-year pacts. 

The bulk of the money would go to protect union health benefits in the first two years of the agreements and toward wage, benefit, training and pension fund increases in the final three years. 

Union workers at the eight gaming properties must vote on the offers before they could take effect. 

"I don't think we were ever far apart," said Tom Jenkin, senior vice president and general manager of Harrah's Las Vegas and the Rio. "We were always in agreement with the monetary goals of the contract." 

Members of the 47,000-member Culinary union and Bartender's Local 165 overwhelmingly voted last week to authorize a June 1 strike for about half of the Strip's work force if new contracts are not negotiated by the end of the month at 35 Las Vegas gaming properties. 

The Park Place deal was the first to be reached with agreement coming at about 4 a.m. Thursday, ending a 12-hour negotiating session between company executives and their union counterparts, who represent 10,000 workers at Bally's, Caesars Palace, the Flamingo, Las Vegas Hilton and Paris Las Vegas. 

Financial terms of the agreement, which matched those of the Harrah's and Tropicana deals, would see each of the unions' members receive hourly raises of 68 1/2 cents in the first year of the contract; 60 cents in the second year; followed by annual increases of 65 cents, 65 cents and 65 cents. 

Union leaders had argued for hourly increases of $1.45 per worker over two years, or about 72 1/2 cents a year, chiefly to protect the Culinary's financially troubled health insurance plan, which has been plagued by the nation's rising health-care costs. 

Culinary negotiators sought the two-year deal, saying the uncertain economy and rising health-care costs made it difficult to reasonably negotiate terms for a longer period. Gaming executives have asked for five-year deals, saying they were needed to budget future expenses. 

"I'm really happy," said Luz Peraza, a Culinary union member and food-service worker at the Coffee Cafe in Caesars Palace. "I was hoping we'd sign a deal, but I also wanted to keep our health care. I'm glad our union made it so important, because health care is very important to me." 

Cleopatra's Barge bartender John Carty, a 14-year Caesars Palace employee, said he was pleased by the length of the tentative deal. 

"My friends and I were really hoping for a five-year contract," Carty said. "With a two-year deal we'd spend six months cooling down from these negotiations and six months ramping up toward the next round. We'd only have one year of peace." 

Union leaders also are seeking reduced workloads for 9,000 housekeepers, prompting a mixture of language in Thursday's agreements. 

For example: 

  • The three companies agreed to freeze the number of rooms cleaned by each housekeeper during the life of the deals. 
  • The number of rooms cleaned by each housekeeper on checkout days will be reduced. 
  • A formula will be developed for the Rio and Park Place hotels that will cut the number of standard rooms cleaned by a housekeeper who also cleans suites. 
  • Housekeepers who must travel between two or more floors on a day will see their workload reduced to compensate for the travel time. 
  • Special teams will be created to clean vomit and fecal matter left on beds, floors and walls. 
"I'm happy. Besides being a work issue, this was a respect issue," Taylor said. 

Word of Thursday's tentative deals left one Strip executive praising the outcome. 

"We're very pleased to hear that an agreement has been reached, which certainly lends further evidence that a strike is not going to be necessary," said MGM Mirage Senior Vice President Alan Feldman. 

A second executive, who requested anonymity, said it would be difficult for Mandalay Resort Group and MGM Mirage officials to seek significantly different contract terms from those accepted by Park Place. 

"I would venture to say the game's over," the executive said. "I doubt the union could have lasted five days if the major properties had stood together." 

On Monday, Mandalay and Mirage, which are negotiating jointly with the union, offered hourly increases of $2.92 per worker over five years. That upped a previous proposal by the companies to raise hourly wages and benefits by $2.78 over five years. 

The unions had sought a two-year deal that would see an hourly increase of $1.35 to $1.40 for each member, with the bulk of the money paying to maintain worker health benefits. 

Park Place negotiators previously had offered an hourly increase of $1.05 per worker over 32 months. 

Harrah's executives had offered an hourly increase of 65 cents per worker in the first year of a new deal. Details were not available on the value of the remainder of Harrah's earlier proposal. 

Despite the agreements, union organizers continued their efforts Thursday to prepare for what would be Las Vegas' first citywide gaming strike since 1984. 

Union activists have begun ordering tons of food that would be distributed through vacant storefronts to strikers and their families. Organizers estimate they will need about 40,000 pounds of food for every family of four during four-day periods. 

They also have begun sending letters to major creditors, including banks and credit card issuers, informing them of the possible strike and asking that they defer monthly payments and waive late fees should a strike begin. 

Southern California labor leaders also have vowed to aid Las Vegas union workers in case of a strike. Protest options could see that region's union members picket the Los Angeles-area marketing offices of Strip casino companies. Others could be sent to Las Vegas to walk picket lines. 

"When they call on labor in Southern California, we're going to mobilize for them," said Miguel Contreras, who heads the 810,000-member Los Angeles County Federation of Labor. 

Despite the looming strike, state Sen. Maggie Carlton, D-Las Vegas, who is a Treasure Island restaurant waitress and union shop steward, said she's optimistic agreements will be struck in the coming days with other Las Vegas casino operators. 

"We've got to get through Sunday with all the other negotiations," said Carlton, who is overseeing development of the unions' food bank for strikers. "Hopefully, on Monday morning I can throw all this work away. I would love to throw it away." 

-- Gaming Wire writer Jeff Simpson contributed to this report. 

-----To see more of the Las Vegas Review-Journal, or to subscribe to the newspaper, go to http://www.lvrj.com. 

(c) 2002, Las Vegas Review-Journal. Distributed by Knight Ridder/Tribune Business News. HET, PPE, MBG, MGG, AZR, BYD, 


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