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A strike will hit operations at MGM Grand Detroit operated by MGM Resorts (NYSE:MGM) International, MotorCity Casino and Hollywood Casino at Greektown operated by Penn Entertainment.
On Sept. 29, 99% of voting workers from all unionized groups at the three Detroit casinos voted to authorize the DCC negotiating committee to call a strike.
Negotiations, which began in the summer, have not yielded a contract that increases wages to keep up with inflation and improves healthcare and retirement benefits.
When casinos struggled during the pandemic, the DCC in 2020 agreed to a three-year contract extension with 3% annual raises but inflation in Detroit has risen 20% since then, according to a statement on Monday from the DCC.
Industry gaming revenues have since surpassed pre-pandemic levels, with the Detroit casino industry generating $2.27 billion in 2022, as per the negotiating committee.
The DCC estimates that if workers are forced to strike at the three casinos, it could put at risk $3.4 million in operator revenue per day, with the highest impact to MGM Grand Detroit at $1.7 million.
The Detroit Casino Council is a negotiating committee made up of five unions including Unite Here Local 24, the UAW, Teamsters Local 1038, Operating Engineers Local 324, and the Michigan Regional Council of Carpenters.
Unions across a range of industries in the U.S. such as rail, healthcare have bargained for higher wages and benefits in a tight labor market and a high inflationary environment.
The Detroit strike announcement comes as 40,000 Las Vegas hospitality workers employed at casinos operated by MGM, Caesars (NASDAQ:CZR) Entertainment and Wynn Resorts (NASDAQ:WYNN) are engaged in talks for higher wages and benefits.
The Culinary Workers and Bartenders Unions held a picket at Vegas properties of MGM Resorts and Caesars Entertainment last Thursday. They have not yet announced a strike deadline.
