In a surprising turn, workers at MGM Resorts International’s Detroit casino have rejected a proposed five-year labor contract, opting to prolong their ongoing strike, according to union officials on Monday.
The Detroit Casino Council, representing five unions, announced that the new contract, despite offering the largest pay increase ever negotiated, including an immediate 18% raise on average, was not accepted. The reason for the rejection remains unclear.
Expressing disappointment, MGM Grand conveyed its surprise at the outcome in a letter to employees, noting that over 600 council-represented workers had voted in favor of ratifying the contract. In contrast, approximately 2,100 union members at Hollywood Casino at Greektown and MotorCity Casino voted to accept the new agreement, effectively ending a 34-day strike.
The council had reached a tentative agreement on November 17, covering 3,700 workers at MGM Grand Detroit, Hollywood Casino at Greektown, operated by Penn Entertainment, and MotorCity Casino. Negotiations involved unions such as Unite Here Local 24, the United Auto Workers (UAW), and Teamsters Local 1038.
Despite the continued strike at MGM Grand, the casino reassured that operations will carry on as usual. Meanwhile, in a separate development, around 40,000 hospitality workers on the Las Vegas Strip secured a tentative labor deal with casinos operated by Wynn Resorts, Caesars Entertainment, and MGM earlier this month.
Ananta Agarwal reporting; Edited by Anil D’Silva