Las Vegas Sun

April 18, 2024

Union merger upsetting gentlemen’s agreements

MGM Grand's nonunion North Las Vegas laundry is in the crosshairs of the Union of Needletrades, Industrial and Textile Employees and its president, Bruce Raynor.

His plan to quickly organize its couple of dozen workers could test what industry insiders call secret, longstanding deals between the Strip's resort operators and the Culinary Union.

The alleged secret gentlemen's agreements between major Strip casino operators and the Culinary may be the first casualty of the planned merger between the Culinary union's parent and Raynor's UNITE, a union representing laundry workers and others, resort industry officials said.

"That's a hell of a way to introduce yourself to Las Vegas," one top Strip executive said. "Breaking the deals right out of the box. Doesn't seem very conciliatory to me."

In the alleged secret handshake deals, in place since the late '80s and renewed at contract renegotiations since, Culinary officials pledged not to organize workers in job classifications not then covered by Culinary contracts, said informed sources who spoke on condition of anonymity.

The implicit agreements rewarded property owners who agreed to strong union contracts with the Culinary, alleviating concerns the union would try to use its muscle to organize casino dealers and others the casino bosses preferred to remain nonunion.

In other alleged gentlemen's agreements, the Culinary promised not to attempt to organize workers in Laughlin and other outlying markets, informed sources said.

But the Culinary's top Las Vegas official says the casino industry executives are mistaken, and that the union's decisions not to organize outside of existing job classifications and not to make a strong effort to organize in outlying markets like Laughlin reflect smart strategy, not the result of secret deals.

"There's some myths in this town, and those (supposed handshake deals) are two of them," the Culinary's D. Taylor said this morning. "There are no gentlemen's agreements."

The local that represents more than 40,000 maids, porters and food-service workers hasn't worked to add new job classifications like laundry workers to its ranks because other unions represent some classifications and because the union's resources are better spent trying to organize nonunion resorts like The Venetian, Aladdin and the Palms, Taylor said.

Similarly, scarce union resources forced a strategy limiting organizing efforts in Laughlin and other markets threatened by the dramatic growth of California and Arizona tribal casinos, he said.

"I can't speak for how the (casino executives) view our policies, but these are our policies, not handshake agreements," Taylor said. "We've always emphasized our bargaining units, and markets like Laughlin aren't conducive to having employees stand up (and fight to organize). These aren't secret deals, they're an example of our intelligent allocation of resources."

Taylor said he had yet to closely examine the city's laundry business.

"In a merger, when you get together there is a period of adjustment," Taylor said. "Once I know the facts, we'll sit down with UNITE, and we'll (figure out an approach) to the laundries."

About 80 percent of the casino industry's laundry is handled by UNITE members, Raynor said recently. Much is done by union contractors, including Mission Industries and Brady Linen Service, while a few properties have their own, in-house laundries.

Caesars Entertainment's in-house laundry has a UNITE contract, while MGM Grand's does not, Raynor said.

"Our goal and intent is to organize 100 percent of the laundry workers in Las Vegas," Raynor said, estimating that there are about 1,000 nonunion laundry workers in Las Vegas, including those at the MGM Grand's laundry. "Not only do we want to, and intend to, we expect to."

Raynor said the stepped-up organizing efforts at nonunion laundries will begin as soon as the unions merge, after expected votes by union members to ratify the combination, in July.

"It's 80 percent union now, and we intend to get to 100 percent quickly," he said. "Sooner rather than later -- immediately."

MGM MIRAGE spokesman Alan Feldman said the MGM Grand's laundry has been nonunion since it and the property opened in 1993; it employs "several dozen" workers and does laundry only for the MGM Grand. Other MGM MIRAGE resorts use contracted laundries.

The MGM Grand property opened nonunion and withstood persistent Culinary picketing until Chairman Terry Lanni replaced former MGM Grand boss Bob Maxey two years later and negotiated a deal with the union that represents maids, porters and food-service workers.

Feldman said MGM MIRAGE historically has allowed employees to make their own decisions about whether to join a union.

He declined to say whether UNITE's announced intention to organize the MGM Grand laundry in North Las Vegas would violate the gentlemen's agreements that restrict organizing efforts to Culinary job classifications.

Feldman did question why Raynor would want to introduce himself as the national boss of Las Vegas' biggest union by taking on a decade-and-a-half of Strip practice by expanding the Culinary's reach, even if it is to target laundry workers, UNITE's core constituency.

"I don't believe that just because the unions made a business decision to merge, that replaces years of experience," Feldman said.

Feldman said Raynor would be best served if he took some time to communicate with MGM MIRAGE or MGM Grand management, but said company executives had yet to hear from UNITE or Raynor about plans to organize laundry workers or anything else.

"We have no relationship with this union and we have no relationship with this man," Feldman said.

Raynor said he has no plans to communicate with the Strip casino bosses until the two unions formally approve the merger in July, elevating him to the general presidency of the combined UNITE HERE union.

He said Taylor, the Culinary's secretary-treasurer and its top official in Las Vegas, will remain the point man in dealing with Las Vegas resort operators.

Raynor said that he anticipates having a positive relationship with the union casino operators, much like current national HERE President John Wilhelm has had.

"The merged union will have much more resources and power," Raynor said. "We can do a much better job of organizing workers at nonunion competitors, plus we'll continue to be a powerful partner with the hotels at state and national (political) levels. The same way that John (Wilhelm) serves the hotel workers, I help the UNITE workers."

Raynor said union hotels should expect him to be an ally, but not if they try to prevent his plan to organize laundry workers or send their linens and towels to nonunion laundries.

"We are great partners for employers who treat their employees well, and we're tough adversaries for those employers who don't," Raynor said.

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