MGM Grand strike continues

Tyrone Cutajar November 21, 2023

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MGM Grand strike continues

MGM Grand Detroit workers have continued their strike after rejecting a tentative five-year labour contract.

This now raises questions about the agreement that has already been negotiated by the Detrit Casino Council, an entity that represents 4 additional unions along with the MGM Grand Detroit.

The reasons for this rejection have not been disclosed to the council as of yet, however, increased pressure is now mounting as employees from MotorCity Casino and Hollywood Casino who were initially a part of the strike have already agreed terms to return to work.

The MGM Grand workers are now isolated in the strike.

Worker concerns

The employees on strike have previously stated that there are numerous concerns among workers which include the extended 64-month contract and dissatisfaction with the suggested $3 per hour upfront pay raise.

Financial performance

This rejection has come in lieu of the MGM Grand’s parent company, MGM Resorts International, reporting robust financial performance with $4 billion in net revenues in the third quarter, marking a 16 percent annual increase.

Against this backdrop the MGM casino management has expressed disappointment at the rejection, emphasising the historic nature of the extensive wage hikes in the offer they had turned down.

Strike impact

The strikes have now contributed to multiple temporary closures and disruption of services, affecting the casino’s valet service and amenities.

The now, month-long strike has resulted in substantial revenue losses for MGM Grand Detroit to the tune of an 18 percent drop on last month’s revenue.

This has also raised concerns surrounding the economic impact on Detroit and Michigan, with projected daily losses in tax and operator revenues estimated to be $738,000 and $3.4 million respectively.

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