Las Vegas has suffered all kinds of disasters in recent years.
The Covid pandemic literally shut down the city, while other health concerns have scared away tourists. Even when Las Vegas reopened after the Covid-related shutdown, it wasn't back to business as usual for quite some time.
Health screenings and masks were required, while gaming tables were covered with plexiglass dividers and social distancing rules were enforced. Outbreaks of various variants caused events like CES 2022 to take place and many people and companies to choose not to attend.
Related: Las Vegas Strip adopts controversial new law
Even in the post-Covid world, RSV, bed bugs and other health problems loomed large on the Las Vegas Strip. However, over the past year, those concerns may have been there, but business is back to 2019 levels.
That's good news for the city and left a looming Culinary Local 226 strike as the biggest potential disaster facing Las Vegas. On the positive side, the union reached an agreement with Caesars Entertainment (CZR) – Get a free reportMGM Resorts International and Wynn Resorts last November.
The agreement was reached just days before the inaugural Formula 1 race in Las Vegas, an event that gave the union significant bargaining power.
Now, with three massive events on the Las Vegas calendar, the union has yet to reach an agreement with 21 resort casinos located on the Las Vegas Strip, off-Strip and downtown.
That puts the city in a dangerous position just days before this year's Consumer Electronics Show, with the Super Bowl and March Madness right around the corner.
Image source: Shutterstock
Las Vegas vulnerable to major event strike
During a major event like CES or the Super Bowl, Las Vegas basically sells out. Top Strip properties owned by MGM (MGM) – Get a free reportCaesars and Wynn generally sell their rooms at higher prices, pushing some visitors to stay off the Strip or in the Fremont Street area.
CES operates buses from Fremont Street to the Las Vegas Convention Center, and if those tourist casinos were not operating or their operation was limited by a strike, that could devastate the city in a very important period.
Culinary Local 226 officials have made it clear that a strike, as soon as next week, is on the table. That moment would disrupt CES.
On its website, the union notes that it represents room servers, cocktail and food servers, doormen, bellhops, cooks, bartenders, and laundry and kitchen workers.
“We believe that we are going to have strikes; It's unfortunate. “If we do that, it would actually mean there will be more places on strike than the big three employers.” Secretary-Treasurer Ted Pappageorge said, according to the Las Vegas Magazine.
Pappageorge told the newspaper that the talks focus on salaries and benefits, but also address daily room cleaning, protection against job-replacing technology and reductions in workloads.
Vice President Harris visits union headquarters
Pappageorge's comments followed a Jan. 3 visit to the union by Vice President Kamala Harris. The union leader thanked the Biden administration for its support during his contract fight.
“With President Biden and Vice President Harris in office, working people know that we have political support and leadership that values working families, and that is very important to us. It gives us hope and strength,” Pappageorge said. ““We have won historic contracts for 40,000 workers, but we are not done fighting yet.”
The union leader made it clear that he would not back down when it comes to the remaining workers who lack contact.
“Very soon we will establish strike deadlines for almost 8,000 hospitality workers so that they and their families are not left behind in the economic recovery that companies are enjoying,” he added.
“Businesses are doing well and workers must earn their fair share; we will fight very hard to get the best contract ever so that one job is enough.”
Events like CES, the Super Bowl and March Madness give the union leverage, as even a relatively small number of closed properties could cause huge problems.
Those events use essentially every room in the city, and striking workers would likely cause more people to stay away than just those booked at the affected properties.
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