It was announced that the contract talks that started back in August have led to a positive outcome and the five-year contract ratification with the three Detroit-based casinos is now a reality. The workers approved the contract on Sunday and put an end to the long, complicated discussions and concerns that they might eventually lose most of their benefits.
According to Joe Daugherty, UNITE HERE Local 24 President, a great number of workers expressed their support for the contract. As much as 95% of Greektown workers approved it and statistics shows that 85% of the Motor City employees and 76% of MGM Grand workers also voted in favour of the new contract.
The vice president of UNITE HERE Local 24, Sandra Poinsetta, firmly stated that the local gambling industry will continue to have a significant impact on the Detroit economy and it remains a profitable sector ensuring hundreds of jobs.
Ms. Poinsetta also added that under the new five-year agreement the main concerns of the casino workers will be addressed. The inflationary health-care costs, as well as the wage increase during the last two years of the contract, are said to be among the top priorities. In addition, full-time employees will be provided with signing bonuses. Cuts in health benefits are not likely to happen as the casino sector has managed to resist the pressure and keep the health care costs of about 6,000 employees unchanged.
Community leaders were really interested in the outcome of the talks due to the fact that casinos play a key role in attracting tourists and have a considerable contribution to the city coffers.
On Sunday, a tentative agreement was reached and according to people with knowledge on the matter, the discussions, concerning workers’ health care benefits were really intense. The new agreement is to replace the old one, which expired in the middle of October.
Casino representatives notified the labor unions that the funds for raises and bonuses would become insufficient unless a bigger amount for health care costs is deducted from workers’ paychecks. The result of the discussions was an agreement according to which the existing health plans will remain unchanged and no additional premium costs are to be imposed.
According to the other clauses, the ratified contract contains, part-time employees are eligible for receiving an additional sick day after five years of working for the company. Part-timers scheduling and enhancement of worker classifications are the other issues taken into consideration.
Greektown and MGM Grand representatives were reached for a comment and they settled around the idea of building a successful business that would be beneficial for the local communities and the team members in particular. Casino officials expressed their content with the crafted agreement focused on maintaining the heath care plans and ensuring bonuses and wage increases.
