Culinary near deal with one firm

Monday, May 13, 2002 | 10:51 a.m.

International Culinary Union President John Wilhelm said Sunday that the union expects to sign a new contract with "one or more" of the four major gaming companies on the Strip well before the June 1 strike deadline.

And once that happens, Wilhelm said, he believes the other major companies will come to a similar collective-bargaining agreement, which could avert the first Strip walkout since 1984.

"If a deal makes sense, I can't imagine any reason why the others wouldn't join in," he said.

The union has scheduled a membership vote Thursday at Thomas & Mack Center to authorize a strike if a new agreement with 35 casinos can't be reached by May 31 when the current five-year contract expires.

Wilhelm would not say which companies are likely to sign first, but two logical candidates are Park Place Entertainment, which owns five Strip properties, and Harrah's Entertainment, which owns two.

D. Taylor, the local Culinary Union's newly elected secretary-treasurer, said the union heard "constructive" counter offers from both companies late last week that "could lead to a collective bargaining agreement."

But he added, "There's a difference in making an offer and getting an agreement."

Both companies came away from negotiating sessions, saying they were anxious to strike a deal.

"We had constructive conversations with the Culinary Union," Park Place Senior Vice President Robert Stewart said Sunday. "We made what we believe is a serious offer, and we hope that we'll be able to reach an agreement."

Jan Laverty Jones, Harrah's senior vice president, said the union thought her company was being "extremely fair" in their discussions Friday and Saturday.

"We want to settle," Jones said. "We want labor peace."

The companies, in a split with the other two big gaming operators, Mandalay Resort Group and MGM MIRAGE, submitted counterproposals that could help the union achieve its top negotiating priority, continued free health insurance for its members and their families.

Park Place offered a 2 1/2 year contract, and Harrah's asked for a five-year agreement. The union is seeking a two-year deal because of rising health care costs and uncertainty over the Las Vegas economy.

Wilhelm was guarded Sunday in his assessment of the talks with Park Place and Harrah's.

"I was encouraged by the tone of the negotiations, but we're a long way from a settlement," he said.

But the productive discussions with the two companies have given the Culinary Union momentum heading into the final weeks of the negotiations.

Those close to the negotiations said the split among the "Big Four" puts the union in the driver's seat by allowing it play the major operators against each other.

Mandalay Resort Group and MGM MIRAGE, in a tougher stance, have been pushing for workers to start contributing to health insurance.

The two companies, which own 11 properties on the Strip, were hoping Park Place and Harrah's would join their coalition.

MGM MIRAGE officials are scheduled to give the union a counteroffer today, and Park Place officials will meet again with the union on Tuesday.

Alan Feldman, MGM MIRAGE senior vice president, said this morning that he welcomes any agreement the union might make with Park Place or Harrah's.

"That's a good thing to hear because the discussions last week were far more bleak," he said.

But he added, "Our numbers haven't changed because someone else made an offer. We have to get to an agreement on some very tough issues."

Wilhelm, meanwhile, said discussions with Mandalay remain under a cloud because company officials have failed to take steps to calm ill-feelings that occurred after a May 3 clash at Circus Circus between security officers and union members.

Three injured union members who were suspended following the altercation still weren't reinstated as of Sunday, he said.

"I'm amazed that these issues aren't resolved," Wilhelm said. "To me, that's an inexplicable aggravation of the situation."

The union contends at least six of its members were hurt in the confrontation with Circus Circus officers.

Mandalay officials, who have called the incident "regrettable," said officers moved in to quell an unlawful union demonstration in the employees dining room. The company is investigating the scuffle.