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Contract Extend 12 Hours At MotorCity Casino

POSTED: Monday, October 15, 2007
UPDATED: 9:49 am EDT October 17, 2007

The Detroit Casino Council agreed to contract extensions at MGM Grand, Greektown and MotorCity casinos.

MotorCity Casino and union negotiators agreed to a 12-hour contract extension as talks continued Tuesday night, heading off a possible strike at midnight.

MGM Grand and Greektown casinos have been given a 72-hour extension beyond the 11:59 Tuesday deadline.

Meanwhile contract talks between the coalition of labor unions and the targeted MotorCity Casino continue.

“We are focusing our efforts for a settlement at MotorCity Casino,” said UAW Vice President Jimmy Settles, who directs the union’s Technical, Office and Professional Department. “We are at the bargaining table and we will continue our efforts to reach a new contract that is fair to workers and keeps the gaming industry moving forward in Detroit.”

The unions represent about 6,000 dealers, drivers, housekeepers, wait staff, building operators and other workers.

The negotiations are pivotal for the casinos, which are spending $1.5 billion on new hotels and gaming expansions.

MotorCity opened an expanded gaming floor earlier this year and is spending $275 million on a 17-story hotel to open later this fall.

MGM Grand opened its new, $800 million casino and hotel complex earlier this month. Greektown Casino is spending $475 million to expand its existing facility, including a 20-story hotel and a parking structure set to open next year.

“Just historically, the casino revenues have been resistant to changes in the economy. We have had a continued increase in our casino revenues,” said C.F.O., city of Detroit.

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