Detroit casino update: Strike possible if no deal reached by midnight
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Detroit casinos workers could potentially go on strike as early as midnight if no new labor agreement is reached between unions and the three casinos by the end of day Monday.
The Detroit Casino Council, which represents 3,700 casino workers across five unions, has been in negotiations since early September for a new contract to replace one that expires at 11:59 p.m. Workers recently voted overwhelmingly to authorize a possible strike, if necessary.
Nia Winston, president of Unite Here Local 24, said in an interview that as of Friday afternoon, the council and the casinos were still "miles apart" from reaching any deal.
The core issues for the unions are higher wages, health care costs, an improved 401(k) plan and more input from workers regarding adoption of new technologies that could affect job security. Winston did not share details of the proposals or offers by the council or the casinos.
Detroit casino workers have never gone on strike before. It was not clear Friday afternoon whether all three casinos could remain open to the public during a strike, given requirements to have workers trained and licensed by state regulators.
However, a spokesperson for MGM Grand Detroit Casino said they intend to stay open even if a strike happens.
The workers are under a three-year extension to a five-year contract that started in 2015. The casino council said they agreed to minimal wage increases back in 2020 for the three-year extension to help the casinos during the COVID-19 pandemic and shutdowns.
The extension gave workers a 3% total increase in wages over the three-year period, union officials said, and noted how those raises ended up below actual inflation.
Winston said the casinos have mentioned in negotiations that casino visitor numbers are down. The unions responded, she said, by pointing to the January 2021 start in Michigan of legal online gambling and online sports betting, which opened new revenue stream opportunities, and how the three casinos are operating with about 1,500 fewer workers than before the pandemic.
“Our workers are not greedy, they just want a livable wage," she said.
The three Detroit casinos -- MGM Grand, MotorCity and Hollywood Casino at Greektown -- collectively reported $2.27 billion last year in total gaming revenues from in-person and online play -- $813 million more than in 2019 from just in-person gaming, according to the council's analysis of Michigan Gaming Control Board data.
The threat of a possible casino workers' strike comes at a time when about 34,000 UAW members are on strike in Michigan and other states, as well as another 1,000-plus UAW members employed with Blue Cross Blue Shield of Michigan
The Detroit Casino Council is composed of five unions representing most, although not all, of the workers at the three casinos: UNITE HERE Local 24, UAW, Teamsters Local 1038, Operating Engineers Local 324 and the Michigan Regional Council of Carpenters.
“We continue to negotiate with the DCC on a new contract that demonstrates our commitment to our employees here in Detroit," Dara Cohen, an MGM Resorts International spokesperson, said in a statement. "We believe that all parties are dedicated to reaching an agreement that works for everyone."
PENN Entertainment, the owner of Hollywood Casino at Greektown, said in a statement that "we are committed to continue working constructively to develop a mutually beneficial agreement that positively positions our team members and business for success well into the future.”
MotorCity Casino did not respond for comment about the negotiations.
