DETROIT - The Detroit Casino Council (DCC (LON:DCC)) has successfully concluded negotiations with Detroit's major casinos, resulting in a landmark five-year agreement that puts an end to the first-ever month-long strike by 3,700 workers. The new contract, finalized today, promises immediate substantial wage increases and improved employment conditions for casino employees amidst the challenges of high inflation.
The strike, which had a significant daily financial impact on operators like MGM Grand Detroit, with potential revenue losses of up to $3.4 million, came as a response to a 20% surge in inflation since the last agreement in 2020 that provided only modest annual raises of 3%. This newly forged pact encompasses several key benefits for DCC members:
- Salary increments to address the inflationary pressures faced by workers
- Reduced workloads to ensure better work-life balance
- Enhanced healthcare and pension plans to provide greater security and support
The resolution was met with positive reactions from industry leaders. Matt Buckley from MGM expressed relief and satisfaction at the strike's conclusion and the significant pay rise for DCC members. Similarly, Bruce Dall of MotorCity highlighted their commitment to maintaining excellent jobs and benefits for their staff as a result of these successful negotiations. John Drake from Hollywood Casino also recognized the efficient and respectful nature of the bargaining process.
Despite a decrease in brick-and-mortar casino revenues to $1.2 billion in 2022—a $200 million drop from pre-pandemic levels—the overall gaming industry revenue has surpassed previous benchmarks, buoyed by iGaming and online sports betting income streams.
The DCC's membership is now set to cast their votes to ratify the new contract. With this agreement, the unions, including Teamsters Local 1038, have made strides towards mitigating the financial pressures faced by casino workers due to rising living costs. The deal also comes at a critical time when similar labor negotiations were taking place earlier this month with Las Vegas companies such as Wynn Resorts (NASDAQ:WYNN) and Caesars (NASDAQ:CZR) Entertainment.
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