Hospitality workers in Las Vegas reached a tentative labor deal with Wynn Resorts (WYNN.O), their unions said on Friday, ending a strike threat against major casino operators that could have crippled tourist operations in the city.
The five-year agreement covers 5,000 employees at two Wynn Resorts properties and follows similar deals with rivals Caesars Entertainment (CZR.O) and MGM Resorts International (MGM.N) earlier this week that covered about 35,500 workers on the Strip.
The Culinary Workers and Bartenders Unions said negotiations are still ongoing with 24 smaller casinos and resorts where about 18,000 workers are employed under a labor contract extension.
This includes properties owned or operated by Hilton Worldwide (HLT.N) and Hilton Grand Vacations (HGV.N). The contract extension has been in place since June 1 and can be terminated with a seven-day notice, the unions said.
The deal with Wynn follows a series of successful labor actions in the automotive and entertainment industries, as workers sought wage hikes at a time when companies have enjoyed strong sales.
Casino resort operators in Las Vegas have been earning record profits from a steady post-pandemic recovery in tourism.
Last week, auto workers ended a strike against the Detroit Three carmakers, while Hollywood actors reached a deal earlier this week with studios as well.
The deal with Wynn marks the end of negotiations between the unions and the largest casino operators in the city.
It also averts the threat of a disruption to popular events expected to draw thousands of visitors to the tourist-driven economy of Las Vegas.
"We are very pleased that we were able to reach an agreement," Wynn said in a statement, adding it was looking forward to a ratification of its tentative agreement soon.
Financial details of the Wynn agreement were not immediately available, but the Las Vegas unions, considered among the most powerful in the United States, said they had secured the largest wage increases ever negotiated in their history.
The agreement reduces workload, lessens steep housekeeping room quotas and extends recall rights for workers, providing them with the option to return to their jobs in the event of another pandemic or economic crisis for up to three years.
The city will be hosting the Formula 1 Las Vegas Grand Prix this month and the 58th Super Bowl, which is scheduled to take place in February 2024.
Visits to the city in September were 4% lower than in the same period in 2019, according to data from the Las Vegas Convention and Visitors Authority. Room rates, however, have surged more than 47%.
