Union members agree to merger

Alana Roberts

Friday, July 9, 2004 | 10:52 a.m.

The parents of two Las Vegas unions Thursday agreed to merge, creating an organization with nearly 50,000 local workers.

Culinary Union parent Hotel Employees and Restaurant Employees International Union (HERE) and clothing, laundry and textile union UNITE have merged to become UNITE HERE. Thousands of rank-and-file delegates of both unions voted unanimously to approve the merger Thursday in Chicago.

Nationally, the combined union will represent 440,000 active workers and 400,000 retirees. The unions first announced the proposed merger in February, when the executive boards of both unions approved the merger.

The Culinary Union represents 40,000 to 43,000 hospitality workers in the Las Vegas Valley, while UNITE represents 4,000 laundry workers in the Las Vegas Valley at such companies as Brady Linen Service, Mission Industries and Flamingo Laundry. The unions are made up largely of women, immigrants, blacks and other minorities. Bruce Raynor, UNITE's president, will serve as the new union's general president, while John Wilhelm, HERE's president, will serve as president for hospitality industries. The two presidents will share executive, budgetary and personnel authority. D. Taylor, secretary-treasurer of the Culinary Union Local 226, said the combined power of the unions will allow UNITE HERE to work more effectively with companies who also have combined their resources through mergers. "We think very much with gigantic national and multinational corporations, unions need to consolidate. That's why we took (this) step. It's been in the works for a while, and we're excited about it! ," Taylor said.

Alan Feldman, spokesman at MGM MIRAGE, said the union's merger mimics the $7.9 billion proposed merger between MGM MIRAGE and Mandalay Resort Group. He said the unions merged in order to respond to larger companies, and companies like his merge to respond to stiffer competition.

"It's sort of interesting the strategy is the same. Ours have to do with competition from California in particular. The whole competitive landscape for gaming across the country has changed," Feldman said.

He said the relationship between the Culinary Union and Las Vegas casinos have mostly been positive and that he doesn't expect that to change with the merger.

"The Culinary has become one of the most vibrant and healthy unions in the nation. Our industry has seen some very profitable times over the last couple of decades. We certainly look forward to working with the combined union and moving forward," Feldman said.

Five-year contracts between Las Vegas casinos and the Culinary Union aren't set to expire until 2007. In 2002 negotiations between the Culinary Union and downtown Las Vegas casinos were contentious because downtown casino leaders said they couldn't afford the $3.24 hourly increases in wages and benefits over the five-year contract Strip casinos negotiated. The union and downtown casinos eventually agreed on a $2.20 increase in wages and benefits over the course of the contracts.

Feldman said even downtown casinos, who had a tougher time at negotiations, wouldn't fear such a merger.

"I don't think you look at it as a threat. I don't think that's how the industry is going to perceive this. I think at the end of the day it's all about economics. The downtown properties have long made a case that their economics are different than the Strip. The union has had another contention. Their view is if you clean a room downtown and you clean a room on the Strip, it's the same thing," Feldman said.

Taylor said locally the two unions will continue to operate separately but that they plan to merge as soon as possible.

He said details on who would actually run the combined union have not been worked out.

"We're in talks, and we'll figure it out," Taylor said.

Both unions have displayed a unique approach to their organizing efforts, said Richard Hurd, a professor of labor studies at Cornell University in Ithaca, N.Y. He said the Culinary Union's success in Las Vegas will affect both unions.

"They'll continue to use that same strategy in using corporate campaigns and pressure tactics to gain the ability to use card checks," Hurd said.

The card check is a union-preferred method of organizing, whereas companies tend to prefer elections run by the National Labor Relations Board. Unions consider such elections slower and more beneficial to a company looking to stifle union interest.

Hurd said UNITE HERE is part of a group of unions pushing for consolidation within the labor movement. That push is led by a group of unions that have formed the New Unity Partnership. Those unions include UNITE HERE, the Service Employees International Union, the Laborers International Union of North America and the United Brotherhood of Carpenters and Joiners.