Deals giving Culinary new momentum

Friday, May 24, 2002 | 11:06 a.m.

With one-third of its 50,000 members covered by new tentative contracts, the Culinary Union now is eyeing agreements with the last two major Strip operators, Mandalay Resort Group and MGM MIRAGE, in its race to avert a June 1 strike.

Union leaders said they agreed to five-year deals with Park Place Entertainment, Harrah's Entertainment and the Tropicana Thursday, giving them the largest-ever increase in benefits and wages for their members.

"It's the best contract we've ever negotiated in the history of the Culinary Union," said D. Taylor, the union's newly elected secretary-treasurer.

John Wilhelm, the union's international president and chief negotiator, added:

"I think we achieved the union's two major objectives, which were protecting medical benefits fully paid by the employers and making significant improvements in the workload and working conditions of the housekeepers.

"This community was heading toward a cliff, and these three companies really stepped up to the plate and showed leadership not only on behalf of their own employees, but the rest of the community. And I hope the rest of the employers follow their lead."

The agreements, which must be ratified by members next week, dramatically improved the union's chances of striking deals as early as Sunday with Mandalay Resort Group and MGM MIRAGE, which have taken the toughest stand during negotiations.

Mandalay and MGM MIRAGE, which together own a dozen casinos and make up another 45 percent of the union's members, are set to return to the bargaining table Sunday to consider the same agreements reached on Thursday.

"Things are definitely moving in the right direction," MGM MIRAGE Senior Vice President Alan Feldman said. "Hopefully we'll be able to work out the remaining issues and be prepared to announce a new contract very soon. I suspect we'll be able to get a resolution pretty quickly."

Senior Mandalay Vice President Mike Sloan agreed.

"The economics of the industry's contract appeared to have been established by Park Place," he said. "The momentum certainly favors a negotiated settlement acceptable to both parties.

"The fact that it's five years is something we favored from the outset, and we look forward to concluding the negotiations as soon as possble."

Thursday's agreements, unanimously being recommended by the union's negotiating committees, give 16,500 workers at eight Strip resorts an increase of nearly $3.24 an hour in benefits over five years. In contrast, the current contract called for a $1.95 hike over a similar period.

Hotels covered in the new contract are Las Vegas Hilton, Flamingo, Caesars Palace, Bally's, Paris, Harrah's Las Vegas, Rio and Tropicana.

The deal calls for a 65 cent increase in health benefits the first year, which is what the union was demanding to keep its $300 million health and welfare fund afloat and preserve free medical coverage for its members. An additional 3 cents is being allocated to the union's pension fund and a half-cent to its job training fund.

Park Place, Harrah's and the Tropicana agreed to a 60 cent increase the second year and then 65 cents the remaining three years, which the union can distribute among wages and its health, pension and training funds.

The companies also agreed to allow housekeepers to wear pants and impose new measures that will reduce their workload, especially on check out days.

"We're delighted, and we think our members are extremely happy," Wilhelm said, adding he was hopeful he would be able to negotiate new contracts with the rest of the industry before the June 1 strike deadline.

"We're going to meet with as many companies as we can until May 31," he said. "Our goal is to get this done on time."

In all 35 casinos on the Strip and downtown have contracts that expire next on May 31.

Union leaders scheduled talks today with the Boyd Group, which owns three casinos with contracts that expire -- Stardust, Fremont and Main Street Station.

The union also is conducting morning and evening meetings of its 1,700 member contract committee to explain the details of the tentative agreements, as well as the ongoing preparations for a strike in the event talks break down.

Negotiations are expected next week with lower end downtown hotels, such as Binion's Horseshoe, the El Cortez, Las Vegas Club, Fitzgerald's, Four Queens and Union Plaza.

Wilhelm acknowledged that some of the struggling downtown properties probably won't be able to afford the Strip deal and that the union likely would have to make economic concessions.

"There's no question that there are a number of hotels that are facing significant economic challenges, and once the major companies are settled, it's our intent to work with those companies that have economic challenges," he said.

The union's acceptance of the five-year deal represents a major change in its negotiating stance in the past five weeks.

Until Thursday, the union had been insisting on a two-year contract because of the unstable economic conditions in Las Vegas in the aftermath of Sept. 11.

"Our members always preferred a longterm agreement," Wilhelm said. "Our concern was how to get enough money into a longterm agreement to protect the benefits and provide for wage increases. And to their credit, these companies provided for that."

Both Park Place and Harrah's officials said Thursday they were happy with the tentative agreement.

Tom Jenkin, senior vice president and general manager of Harrah's Las Vegas and the Rio, issued a statement, saying the deal "appropriately meets the needs for the health, welfare and future wages" of his company's employees.

"We are very pleased that a positive and mutually beneficial relationship will continue between between Harrah's Entertainment's Las Vegas properties and the Culinary Union," he said.