The shell of Caesars Palace Hotel and Casino is viewed in Las Vegas on Dec. 4, 2015.
George Rose | Getty Images
A strike is off the table for hardly 10,000 Caesars Entertainment union workers on the Las Vegas strip.
The Culinary Union said it took 20 straight hours of mediations to produce a tentative deal for a new five-year contract, two days before a deadline for a walkout.
The previous contract expired June 1. The Culinary Splice and Bartenders Union members voted to authorize a strike in September against Caesars, MGM Resorts and Wynn Resorts.
Treaties with MGM and Wynn are ongoing.
In a statement to CNBC, Caesars said its union employees will see meaningful wage boost waxes that align with growth opportunities and past performance.
“We have done quite well as a company post-merger, post-pandemic,” Caesars CEO Tom Reeg indicated on an earnings call Oct. 31. “Our employees should and will participate in that.”
He said it would be the biggest wage spread for Caesars employees in the company’s four decades of dealing with the Culinary Union.
The company reported an all-time accomplishments for adjusted EBITDA, a crucial metric of profitability in the gaming industry, of more than $1 billion.
Reeg told that the company budgeted this summer for the wage increases and built new terms of the contract into the company’s matter model.
Details of the deal have not yet been released.
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