The unions representing hospitality workers in Las Vegas on Thursday reached a tentative deal with MGM Resorts International (MGM.N) for a new contract covering nearly 25,400 employees, less than 24 hours before a strike threatened to shut down the Strip.
The Culinary Workers and Bartenders Unions said they have a five-year tentative agreement with the casino operator, which averts a strike at eight MGM properties and comes a day after rival Caesars Entertainment (CZR.O) reached a deal with 10,000 workers.
MGM Resorts, the biggest Las Vegas operator by number of employees, said on Wednesday that the new contract would result in the largest pay increase in the history of its contracts with the unions.
MGM did not immediately respond to a request for comment.
Shares of MGM were up 1.78% in morning trading.
The negotiations, which began in April, came as a number of unions across industries press employers for better pay and benefits, buoyed by a shortage of workers.
The Las Vegas unions, considered among the most powerful in the United States, were demanding meaningful wage increases, funds for healthcare and pensions as well as a reduction in steep housekeeping quotas and mandating of daily room cleaning.
Casino resort operators have been earning record profits from a steady post-pandemic recovery in Las Vegas tourism.
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%.
The city is gearing up for events including the Formula 1 Las Vegas Grand Prix this month, which is expected to draw thousands of tourists.
