DETROIT – Thousands of unionized casino workers walked out from three Downtown Detroit casinos Tuesday just after their contract expired about without a new agreement to replace it.
About 3,700 union-represented employees at MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown were on strike as of noon on Tuesday, Oct. 17. Their union contract with the casinos were supposed to expire Monday, though that deadline was pushed to noon on Tuesday.
Both sides reportedly remain at odds over healthcare costs and wages, particularly as the business rebounds following pandemic struggles. Union members told Local 4 on Monday that they don’t want to strike amid what they called hard times, but they feel like they need to be heard.
“The workers are seeking contract improvements after years of pandemic hardship -- including wages that keep up with inflation, healthcare, retirement security, technology language, fair workloads for housekeepers, and more -- but casino management has been unwilling to deliver a fair contract for workers,” union officials wrote in a press release Tuesday.
In a letter shared Tuesday morning, Matt Buckley, President and COO of MGM’s Midwest Group, said MGM Grand Detroit has offered six proposals to the union, which include its “largest pay increase” in the casino’s history. Buckley also said the company recognizes the union’s right to strike, but will ensure the casino continues operating normally amid the strike.
“We intend to continue to operate our business during any potential strike and will remain open this week and beyond. We will continue to offer employees work, and to the extent employees represented by the union choose to participate in the strike, we will take whatever lawful action is necessary to fill shifts and continue providing our customers with entertainment and service,” Buckley said.
Those close to the situation said contract talks made progress on Monday. Union officials said Tuesday morning that the negotiating committee “worked through the night to craft a counter proposal,” but hadn’t yet received a response from the casinos.
Nearly all of the casinos’ union employees -- 99% -- voted to authorize a strike. According to the Unite Here union, a strike could significantly impact the casinos, Detroit and the state of Michigan, putting at risk “approximately $738,000 in city and state tax revenues and $3.4 million in casino operator revenues per day.”
The three Detroit casinos are some of the biggest tax generators for the city each year.
---> How much tax revenue do Detroit casinos generate every year?
Casino workers are represented by five unions under the Detroit Casino Council: Unite Here, United Auto Workers, Teamsters, Operating Engineers, and the Michigan Regional Council of Carpenters.
A statement from Hollywood Casino at Greektown reads: “We are disappointed by the decision of the Detroit Casino Council as we have made generous, progressive settlement offers that position our team members and business for sustainable success. We will remain open for business to serve our customers and are committed to continued good-faith bargaining with the Detroit Casino Council to resolve the issues at hand as soon as possible.”
MotorCity officials also say they “remain committed to bargaining in good faith” and will remain open amid the strike.