The Culinary Union announced early on Tuesday (20 August) that it had reached a tentative agreement on a new four-year labour agreement with the Venetian and Palazzo. The resorts were some of the last non-union properties on the Las Vegas Strip.
The tentative deal, reached early Tuesday morning, still needs to be ratified by employees. There are approximately 4,000 non-gaming employees between the two resorts. The agreement is for four years meaning the 2028 expiration lines up with other recent deals the union secured.
Last November, Culinary agreed to five-year deals with Wynn Resorts, MGM Resorts and Caesars Entertainment. Over the subsequent six months, the union also agreed to terms with dozens of independent operators.
Terms of the Venetian-Palazzo deal were not disclosed. But it is expected to fall in line with previous agreements. Those included a 10% wage increase in the first year and 32% in increases over the life of the contract. Average full-time salaries will reach about $77,000 per year by 2028. Also included were provisions related to worker benefits, daily room cleaning and protections against technology such as AI.
Apollo purchase paved way for deal
The Venetian-Palazzo had held out against union efforts since opening in 1999. Its previous owner, Las Vegas Sands founder Sheldon Adelson, was staunchly opposed to unionisation.
After his death in 2021, the properties were acquired for $6.25bn in 2022 by Apollo Global Management. Apollo and Culinary affiliates have partnered for deals at Apollo’s other real estate holdings. The two sides had already announced a neutrality agreement last June, allowing for free unionisation efforts. With one of its biggest prizes now in tow, Culinary has cemented itself as the most powerful labour group in Nevada.
“We’ve always viewed time differently – this isn’t just about the here and now, it’s about building a legacy of fairness and dignity for working families in Las Vegas,” Culinary secretary-treasurer Ted Pappageorge said in a statement.
Venetian CEO Patrick Nichols added that the property “looks forward to ratification of the agreement and to a positive and productive relationship” with the union.
Culinary closing in on Strip sweep
Now that the Venetian-Palazzo has agreed to terms, there are increasingly few non-union holdouts on the Strip. The Fontainebleau does not have a deal but a neutrality agreement was announced before its December opening. Similar to Apollo, Fontainebleau and Culinary have deals elsewhere, indicating that a Las Vegas contract is likely coming.
Virgin Hotels is a notable holdout, as the two sides have been in a stalemate since May. Culinary rejected what Virgin called its “final offer” and held a two-day picket. As of June, there was still no movement in negotiations.
Elsewhere in Las Vegas, the union is still entangled with its longtime nemesis Red Rock Resorts. The two sides are currently in labour court proceedings over allegations that Red Rock used the Covid pandemic as an excuse to lay off and marginalise union workers.
In a separate trial, the National Labor Relations Board ruled in June that Red Rock must bargain with Culinary at its flagship Red Rock Resort after the operator was found to have foiled a 2022 election with union-busting tactics. That decision has been appealed in federal court.
