A massive Las Vegas casino resort and its owners — among them a Canadian union pension fund — are being accused of union busting by threatening to replace striking workers south of the border.
Since mid-November, 700 workers from housekeeping, food and beverage departments, and unionized restaurants at Virgin Hotels Las Vegas have been in an increasingly bitter fight with their employer and two of its owners, Ontario-based Fengate Asset Management and the Labourers’ International Union of North America (LiUNA) Central and Eastern Canada Pension Fund.
The strikers, many of them immigrants in the U.S. demanding better wages and benefits, are represented by the Culinary Workers Union Local 226, which covers workers in downtown Las Vegas and the Las Vegas Strip — the famous road lined with dozens of Nevada’s grand and dazzling casinos, including Caesars Palace and MGM.
It’s surprising that a hotel owned in part by LiUNA — an organization whose purpose is to protect the rights of Canadian construction, waste management and health-care workers — is opposing improvements for Las Vegas service industry jobs, said Ted Pappageorge, secretary-treasurer for the Culinary Workers Union Local 226.
He also believes that Fengate’s approach in some negotiations with the Culinary Workers Union contradicts the company’s claims that it is socially aware and community involved.
“Canada actually does have a reputation of upholding strong labour standards,” said Pappageorge. “But when Canada comes to Vegas, our standard is getting attacked and we have our first strike in 27 years. It is shocking. And we want answers.”
The LiUNA pension fund says it has no role in the collective bargaining process, according to a statement, while a Fengate spokesperson said the money manager has a “proud history with organized labour across Canada and the United States.” Virgin Hotels Las Vegas is committed to its “track record of good faith, successful collective bargaining with culinary union leadership,” the Fengate spokesperson added.
A statement by Virgin Hotels Las Vegas said that it is “seeking a fair contract that reflects the economic reality of an off-Strip property and positions us to ensure continued employment stability across our property.”
It said the workers’ demands are not “financially sustainable” for them and could lead to future layoffs, going on to explain that “off-Strip” hotels tend to bring in less revenue than those “on-Strip.”
Still, the Culinary Workers Union says all employers, except Virgin Hotels Las Vegas, have signed their standard contract after the previous one expired in summer 2023.
While average workers with the Culinary Workers Union will see an hourly wage and benefits increase of $9.21 at the end of five years under the new standard contract, Virgin Hotels workers would get a wage and benefits raise of $1.50 per hour in that same period under the alleged offer by the employer, according to a union spokesperson.
“When you come to Las Vegas and you bring hundreds of millions of dollars to invest in concrete and steel and glass and buildings, you also have to invest in the workers,” said Pappageorge. “It’s pretty clear that Fengate and their Virgin Las Vegas management team have decided that they’re not going to do that.”
The Culinary Workers Union is blaming the Canadian owners for pressuring Virgin Hotels to hire “scabs,” or non-union temporary workers, to sub in for picketing bartenders, servers, porters, laundry and kitchen staff. Hotel management has also warned that employees who do not report to work because they’ve joined the strike could be permanently replaced, according to the union.
So far, there have been no permanent replacements. But that threat alone led nine strikers on a trip to frigid Canada in mid-December in an attempt to talk to Fengate and LiUNA management at their headquarters. While it didn’t go as they hoped — they were turned away by security at both places — Pappageorge believes they were able to communicate to the owners that the workers are committed to their cause.
With some exceptions, U.S. employers can permanently replace strikers, meaning they can hire someone to do a striker’s work without having to eventually fire that person to create a vacancy for the returning striker, says David Doorey, professor of work law and labour relations at York University. If a vacancy later comes up, the striker has a first right of return to their old job, Doorey added.
The strike has no end in sight. LiUNA pension fund spokesperson Victoria Mancinelli claims some hotel guests are being “abused” and “harassed” by strikers, while the Culinary Workers Union charges that Virgin Hotels has attempted to forcibly remove signs on the strike line. Virgin Hotels declined to comment on those allegations.
Recently, standup comedian Steve Hofstetter cancelled a show scheduled at the resort in solidarity with the workers.
There have been no bargaining sessions since the walkout more than 50 days ago and the Culinary Workers Union rejected Virgin Hotels Las Vegas’ latest request for an arbitrator to decide the terms of the new collective agreement.
It believes this would “take the power away” from the workers, union spokesperson Bethany Khan said in an interview.
“The idea that this massive Canadian fund would come to the U.S., to Las Vegas, to wreck our standards is just unacceptable,” said Pappageorge. “It’s unacceptable in Canada, so it’s unacceptable here.”
