Harrah’s workers ratify five-year collective bargaining agreement

Employees at six Harrah's Entertainment Strip casinos Saturday overwhelmingly ratified a new five-year collective bargaining agreement between their union and hotel management that labor leaders said was the largest wage and benefit package they had ever negotiated.

The contract covers some 15,000 workers represented by Culinary Local 226 and Bartenders Local 165 at Harrah's Las Vegas, Caesars Palace, Bally's, Paris Las Vegas, Flamingo and the Rio.

The agreement was finalized Friday following a marathon 15-hour negotiating session and almost three months of talks between the Culinary's negotiating team, made up of several hundred rank-and-file members, and Harrah's management.

Union members met Saturday in two sessions to go over the contract language and vote to ratify the agreement. The union did not release the vote count.

"Our new contract with Harrah's makes sure the 'Las Vegas Dream' will be maintained and strengthened," Culinary Secretary-Treasurer D. Taylor said in a statement following the vote. "The negotiating committee worked hard to establish a number of firsts in new contract language."

Harrah's Regional President Marilyn Winn, who was the company's lead negotiator, said Saturday about 97 percent of the employees voted to ratify the deal.

"We believe this was a fair deal for both sides and by getting a new contract in place, it allows our employees to focus on great customer service and not be worried about a contract situation and their economic livelihood," Winn said. "There was truly a lot of give and take in the negotiations."

In addition to the wage and benefit increases, which were not disclosed, the contract establishes rights for workers who are called up for military service and creates a contractual career ladder so workers can elevate their job duties and responsibilities.

The agreement maintains free family health insurance for Culinary employees in which workers don't have to pay premiums.

Also, the contract maintains the employees' pension plan, offered the largest-ever increases in guaranteed gratuities for tipped workers, and establishes both a housing trust fund and a legal defense fund for workers who are questioned by the Internal Revenue Service.

The contract also allows the union to represent workers employed at condominiums, hotels, and condo-hotels that are joint-venture partners with Harrah's Entertainment.

The new contract was especially satisfying to union leaders since Harrah's Entertainment is being bought for $17.1 billion by two out-of-state private equity firms. The deal is expected to close by the end of the year.

The agreement has a salary continuation clause covering the pay of workers should a Harrah's hotel-casino close during the life of the deal.

Five-year contracts covering some 50,000 Strip and downtown hotel-casino workers expired May 31 despite early negotiations and optimistic attitudes by both the union and resort executives. After the contracts expired, companies extended the old agreements until new pacts could be negotiated.

Culinary officials are hoping the deal with Harrah's might pave the way for an agreement with MGM Mirage. The large casino operator has 21,000 employees covered by the Culinary contract.

With MGM Mirage, however, the biggest hindrance to a new deal has been language that would allow the Culinary to freely organize workers on development projects where the company has a joint venture agreement.

Culinary leaders say they hope to resume talks with MGM Mirage this week.