Unions representing hospitality workers in Las Vegas reached a tentative labor agreement with Wynn Resorts (NASDAQ:WYNN) on Friday, averting a strike against major casino operators that would have been crippling to one of the biggest tourist cities in the US.
Financial details of the deal were not immediately available, but the Las Vegas unions said they had secured the largest wage increases ever negotiated in their history, Reuters reported.
The media outlet noted the five-year agreement covers 5,000 employees at two Wynn Resorts (NASDAQ:WYNN) properties and follows similar deals with rivals Caesars Entertainment and MGM Resorts International (NYSE:MGM) earlier this week that covered about 35,500 workers on the Las Vegas Strip.
It added that the agreement reduces workload, lessens steep housekeeping room quotas and extends recall rights for workers, providing them with the option to return to their jobs in the event of another pandemic or economic crisis for up to three years.
Tourist visits to the city in September were 4% lower than in the same period in 2019 even as room rates have climbed more than 47%, according to data from the Las Vegas Convention and Visitors Authority.
Shares of Wynn Resorts were down nearly 6% on Friday morning while MGM traded 0.3% lower.
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