Ted Pappageorge, center, secretary-treasurer for the Culinary Workers Union, Local 226, speaks during a break in contract negotiations between the union and Caesars Entertainment at the Horseshoe Tuesday, Nov. 7, 2023. With Pappageorge, from left, Leain Vashon, Diana Valles, president of Local 226, Maria Espino, and Jennifer Black. Terry Greenwald, secretary-treasurer of Bartenders Union, Local 165, is seated at right.
Friday, Nov. 10, 2023 | 2 a.m.
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In a perfect example of how unions are good for workers, the community they live in and management, the Culinary Union and both Caesars Entertainment and MGM Resorts International have reached tentative agreements and averted a looming strike. With marathon negotiations already underway, Wynn Resorts is expected to reach a similar agreement by the time you read this editorial.
All of the agreements still have to be voted on and approved by the union members but under the leadership of Ted Pappageorge, secretary-treasurer and chief negotiator for the union, the workers who make the Strip function effectively day in and day out have agreed not to strike until after votes are tallied.
That means that even in an unlikely worst-case scenario — one in which workers reject the agreement — a strike would not occur until after the Formula One Las Vegas Grand Prix next week.
More probable, however, is that the 35,000 Culinary members will vote in favor of the historic five-year agreements, sidestepping a costly strike in favor of contracts that include the largest wage increases ever negotiated by the union, workload reductions and increased safety and job security protections for workers.
Any such agreement is a two-sided affair, and both MGM and Caesars deserve to be applauded for seeing these agreements as an investment in their workers, the community and the long-term health of their companies. This is what forward-thinking corporate leadership looks like.
The successful negotiations demonstrate why employee unions are so essential, especially in a society in which the wealth gap between the rich and poor is rapidly increasing. In a city in which millions of dollars trade hands each hour of the day and fortunes are won and lost in an instant, individual Strip workers don’t have sufficient power to defend their interests on a level playing field with the industry titans on the Strip.
However, when united as a collective force, the workers can credibly negotiate to share the success their hard work provides to billion-dollar businesses.
Historically, the benefits of labor unions are beyond refute. According to a study performed by Biden administration and the U.S. Department of the Treasury, members of labor unions earn an average of 10-15% more than their non-unionized counterparts for the performing the same or similar duties. Unions also improve fringe benefits and operational procedures that affect workers, such as retirement plans, workplace grievance policies and predictable scheduling practices. If all that weren’t enough, the Treasury Department’s analysis confirmed that the bulk of the benefits of labor unions go to low- and middle-income workers, who are the backbone of the American economy.
Moreover, unions build the middle-class dream for millions of workers, and the entire economy benefits from that.
Pappageorge fought tirelessly for these workers, holding firm on which issues were nonnegotiable while also creating space for compromise on issues of secondary importance. While we were not in the room for the negotiations, it appears he engaged in good faith and with an open mind, prioritizing the needs of the people he represents over his ego or the need to respond to personal slights.
Clearly, the leaders of MGM, Caesars and, presumably soon, Wynn met the Culinary Union with foresight that valued the workers, and the union behaved responsibly.
MGM President and CEO Bill Hornbuckle acknowledged the importance of his company’s hard-working labor force in a statement following the agreement. “Our employees are the heart of our company and the driving force in the success we’ve enjoyed in Las Vegas post-pandemic,” Hornbuckle said.
Ceasars Entertainment issued a similar statement, adding that, “Through this agreement, Caesars Entertainment will ensure that as we grow, our team members grow with us.”
Those types of statements demonstrate the importance of responsible business leaders who work for the mutual benefit of their business and employees. This was the type of leadership demonstrated by MGM, Ceasars and (hopefully) Wynn this week as they worked to find common ground with union representatives and hammer out an agreement that benefits all parties.
As the saying goes, a rising tide lifts all boats, and the rising tide of increased pay and benefits for Culinary members is certain to lift the fortunes of the businesses on the Strip and throughout the Las Vegas economy. These agreements are a win for everyone.
