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Casino Strike Could Cripple Industry
Vegas Workers Vote to Authorize Strike
May 17, 2002 09:32 AM ET Email this article Printer friendly version
LAS VEGAS (Reuters) - Las Vegas casino waitresses and housekeepers overwhelmingly authorized a strike that could cripple the gambling-dependent city if union officials and casino executives fail to negotiate a new contract before the current one expires on May 31.
About 95 percent of more than 18,000 members of the Culinary Workers union, which represents 50,000 casino waitresses, cooks and housekeepers, voted on Thursday to authorize a strike. Voting was held at two separate meetings, one in the afternoon and the other in the evening.
Passions ran high at both gatherings, which were closed to the public. Many union members previously faced involuntary layoffs after casino business in Las Vegas dropped as much as 50 percent during a post-Sept. 11 travel crisis that left many people nervous about flying.
The huge margin in favor of authorizing a strike came after many union members complained casinos increased their workloads to make up for the layoffs and wanted members to pay for health benefits that are currently free of charge.
Elaine Smith, a 51-year-old restaurant waitress and union shop steward at the Stratosphere Hotel, said managers expected her to wait on 16 tables during her eight-hour shift, double what she did before Sept. 11.
"I think (a strike) is absolutely necessary," Smith said. "It's impossible to meet those standards for service. There's no way they can take care of customers. And now, they want to take money out of our pockets to pay for health insurance."
A strike by workers would cause major disruptions at nearly all the city's major casinos, dealing a major setback to the tourist-dependent operations that are just now returning to pre-attack business levels following one of the industry's most rapid downturns ever.
As the economy has rebounded, casinos have hired back many of the thousands of workers laid off in the weeks following the attacks in New York and Washington.
Lehman Bros. analyst Joyce Minor said the strike authorization was expected and "does not mean the union will strike."
"(It) merely gives union negotiating committees the ability to authorize a strike," she wrote. "Even so, (the) vote could weigh on names with Las Vegas exposure."
She said the industry's four top players, MGM Mirage MGG.N , Mandalay Resort Group MBG.N , Park Place Entertainment Corp. PPE.N and Harrah's Entertainment Inc. HET.N , would all face major disruptions in the event of a strike.
The last time a comparable strike shut down much of the Las Vegas Strip was in 1984, when workers went off the job for 67 days.
A main issue of contention is health care, the cost of which has risen sharply nationwide as many employers ask workers to pay for a larger share of their insurance premiums.
May 17, 2002 09:32 AM ET Email this article Printer friendly version
LAS VEGAS (Reuters) - Las Vegas casino waitresses and housekeepers overwhelmingly authorized a strike that could cripple the gambling-dependent city if union officials and casino executives fail to negotiate a new contract before the current one expires on May 31.
About 95 percent of more than 18,000 members of the Culinary Workers union, which represents 50,000 casino waitresses, cooks and housekeepers, voted on Thursday to authorize a strike. Voting was held at two separate meetings, one in the afternoon and the other in the evening.
Passions ran high at both gatherings, which were closed to the public. Many union members previously faced involuntary layoffs after casino business in Las Vegas dropped as much as 50 percent during a post-Sept. 11 travel crisis that left many people nervous about flying.
The huge margin in favor of authorizing a strike came after many union members complained casinos increased their workloads to make up for the layoffs and wanted members to pay for health benefits that are currently free of charge.
Elaine Smith, a 51-year-old restaurant waitress and union shop steward at the Stratosphere Hotel, said managers expected her to wait on 16 tables during her eight-hour shift, double what she did before Sept. 11.
"I think (a strike) is absolutely necessary," Smith said. "It's impossible to meet those standards for service. There's no way they can take care of customers. And now, they want to take money out of our pockets to pay for health insurance."
A strike by workers would cause major disruptions at nearly all the city's major casinos, dealing a major setback to the tourist-dependent operations that are just now returning to pre-attack business levels following one of the industry's most rapid downturns ever.
As the economy has rebounded, casinos have hired back many of the thousands of workers laid off in the weeks following the attacks in New York and Washington.
Lehman Bros. analyst Joyce Minor said the strike authorization was expected and "does not mean the union will strike."
"(It) merely gives union negotiating committees the ability to authorize a strike," she wrote. "Even so, (the) vote could weigh on names with Las Vegas exposure."
She said the industry's four top players, MGM Mirage MGG.N , Mandalay Resort Group MBG.N , Park Place Entertainment Corp. PPE.N and Harrah's Entertainment Inc. HET.N , would all face major disruptions in the event of a strike.
The last time a comparable strike shut down much of the Las Vegas Strip was in 1984, when workers went off the job for 67 days.
A main issue of contention is health care, the cost of which has risen sharply nationwide as many employers ask workers to pay for a larger share of their insurance premiums.
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