MGM Resorts International (NYSE:MGM) stock was down 1.1% in early afternoon trading on June 4 despite a breakthrough agreement with casino workers. The union announced via Twitter on June 4 that it had reached a tentative agreement with MGM Resorts. The union touted a 5-year contract that would cover 24,000 employees.
Several smaller casino operators have yet to reach deals. The MGM deal represents a huge portion of the some 50,000 workers that had begun to strike after June 1. A prolonged strike carried the possibility of tens of millions in lost revenue and profits for MGM and other casinos. Automation has been one of the key sticking points for workers.
Casino-hotels have turned to technology that has the potential to displace thousands of workers in the long term. The employees sought contract language that would protect them in the event of property sale and an independent workload study for housekeepers. If an agreement is ratified, Caesars’ Las Vegas Strip properties would not be impacted by a walkout. Caesars’ workers are reportedly seeking a 4.2% wage increase and annual increases of 4% thereafter, while the employer has offered a 2.8% increase.
Caesars Entertainment Corporation (NASDAQ:CZR) stock was down 0.62% in the same period of trading. The news will come as a relief ahead of the busy summer season.
