Five-year offer sent to Culinary

Monday, May 20, 2002 | 11:05 a.m.

Mandalay Resort Group and MGM MIRAGE sent to the Culinary Union today a five-year contract proposal aimed at reaching a settlement before the looming June 1 strike deadline.

"This is a fair five-year deal," Mandalay Senior Vice President Mike Sloan said this morning. "Let's get some stability for the employees, the gaming industry and the state of Nevada."

The proposal offers a 57 cent increase for each employee per hour in health care benefits the first year -- up from from the previous offer of 50 cents. The union has been seeking a 65 cent an hour increase the first year, which is what it contends it needs to keep its $300 million health and welfare fund afloat this year and maintain free health coverage for its members.

In the next year, Mandalay Resort Group and MGM MIRAGE are offering a 53 cent increase that the union can allocate toward its health fund, pension fund or wages. It is offering a similar 56 cent increase the third year, 58 cents the fourth year and 60 cents the fifth year.

The union is demanding a 75 cent increase per employee that it can spend on the health and pension funds or wages the second year.

"This proposal provides an increase in wages and benefits that is nearly 50 percent greater than the increases negotiated in the current agreement," Sloan wrote in a letter to union leaders. "We are making this unprecedented proposal to ensure that our employees remain the most highly compensated culinary members in the Southwest.

"It is noteworthy that this offer is being made in extremely difficult and uncertain economic times for both our industry and our state and that our doing so demonstrates our commitment to the welfare of our employees."

Union leaders could not be reached for comment this morning, but the union has been seeking a two-year collective bargaining agreement, not a five-year one, because of uncertain economic conditions in Las Vegas brought on by the Sept. 11 terrorist attacks.

John Wilhelm, the union's international president and chief negotiator, rejected an offer last week by Mandalay Resort Group and MGM MIRAGE to extend the negotiating deadline for one month beyond June 1.

The union has not met with the two companies, which have taken a tougher stand than other major Strip operators, since May 13 and has no talks scheduled. Union leaders have opted to work out a deal first with Park Place Entertainment and Harrah's Entertainment, which previously have made offers more to their liking. Talks with those companies are set for later in the week.

Sloan said the written proposal was made to speed up the negotiating process with Mandalay and MGM MIRAGE with just 10 business days remaining before the current five-year contract expires on May 31.

"We are confident," he wrote, "that this proposal satisfies the two primary objectives that you have outlined for us in previous bargaining sessions."

Sloan said the the new proposed increases in employer contributions, as well as previous recommendations to streamline the delivery of the health and welfare fund's services, should keep the fund on solid financial footing.