After agreeing to a tentative deal with Caesars Entertainment that covers 10,000 workers, the Las Vegas hotel workers union reached a contract with MGM Resorts International.
The Culinary and Bartenders Union announced the tentative 5-year agreement today that involves approximately 25,400 workers at eight MGM Vegas properties:
- Mandalay Bay
- MGM Grand
- New York New York
- Park MGM
As the union said on X, the agreement followed nearly 20 hours of negotiating.
It has been a busy week for MGM Resorts International as the company also held an earning call reporting financial results for the quarter ending Sept. 30, 2023.
MGM deal reached 24 hours before strike deadline
The union had threatened a strike if the agreement wasn’t reached by Friday 5. a.m. But, a tentative agreement for a new five-year contract was reached with MGM less than 24 hours before the strike deadline.
Ted Pappageorge, Secretary-Treasurer for the Culinary Union, said in a Culinary Workers Union press release: “after 7 months of negotiations, we are proud to say that this is the best contract and economic package we have ever won in our 88-year history.”
Bill Hornbuckle, president and CEO of MGM Resorts International, added:
“Our employees are the heart of our company and the driving force in the success we’ve enjoyed in Las Vegas post-pandemic.
We’re pleased to have reached a tentative agreement that averts a strike, gives our Culinary Union employees a well-earned boost to pay and benefits and reduces workloads – all while continuing to provide opportunities for growth and advancement.”
A strike could still occur, although on a much smaller scale if the union and Wynn Resorts don’t reach an agreement by the given deadline. The negotiation agreement in question includes 5,000 workers at two Wynn properties.
MGM’s Q3 earnings showed revenue increase despite cyberattack
MGM Resorts held its Q3 earnings call yesterday, unveiling financial highlights. Despite the disruption caused by the major cyberattack, MGM Resorts International reported a record revenue of $3.973 billion in Q3 2023, a 16% annual growth.
A cyber-attack occurred on Sept. 11, forcing MGM to shut down certain systems. As the company said, the attack had a negative adjusted property EBITDAR impact of at least $100.0 million.
The successful quarter was mainly influenced by MGM China’s growth, which compensated for the decreasing revenues for its Las Vegas Strip and Regional operations.
The company’s other key performance domains include international expansion, sports betting and online casino sectors and an improved interface and customer experience. MGM’s casino vertical was the primary source of income throughout Q3, with revenues reaching $2.05 billion (a 45.8% annual increase).
As for the other Q3 highlights, MGM ended the third quarter with a net income of $161.12 million, which compares to a net loss of $576.83 million in the prior year quarter. The figure also compares to net income of $200.80 million recorded in MGM’ Q2 2023 report.
Furthermore, adjusted Q3 EBITDAR (earnings before interest, taxes, amortization and rent costs) reached $1.15 billion.