Detroit Casino Council (DCC) said about 3,700 Detroit casino workers are set to strike on Tuesday noon, if a contract deal is not reached.
A strike will hit operations at MGM Grand Detroit operated by MGM Resorts International, MotorCity Casino and also Hollywood Casino at Greektown operated by Penn Entertainment.
On Sept. 29, 99% of voting workers from all unionised groups at the three Detroit casinos voted to authorise the DCC negotiating committee to call a strike.
Negotiations, which began in the summer, have not yielded a contract that increases wages to keep up with inflation and improves healthcare as well as retirement benefits.
The DCC agreed to a three-year contract extension with 3% yearly raises in 2020 when casinos were struggling during the epidemic, but inflation in Detroit has increased by 20% since then, the DCC said in a statement on Monday.
According to the negotiating committee, the Detroit casino industry will generate $2.27 billion in gaming revenue in 2022, surpassing pre-pandemic levels.
According to the DCC, the three casinos may lose $3.4 million per day in operator revenue if forced into a strike by their employees, with MGM Grand Detroit suffering the greatest losses ($1.7 million).
The Unite Here Local 24, the UAW, Teamsters Local 1038, Operating Engineers Local 324, and the Michigan Regional Council of Carpenters are the five unions that make up the Detroit Casino Council, a negotiating body.
In the United States, unions have negotiated for greater salaries and benefits across a variety of industries, including rail and healthcare, despite a competitive labour market and high inflation rates.
40,000 Las Vegas casino employees employed by MGM, Caesars Entertainment, and Wynn Resorts announced a strike that coincides with pay and benefit negotiations.
Last Thursday, MGM Resorts and Caesars Entertainment properties in Las Vegas were the site of a protest by the Culinary Workers and Bartenders Unions. They have yet to declare an end date of the strike.
