Las Vegas Union Scores AI, Daily Cleaning Wins in Caesars Pact

A union of Las Vegas hospitality workers won new limits on new technology, including artificial intelligence, in a contract agreement Wednesday with Caesars Entertainment Inc., a top official said.

The tentative agreement would require six months notice for the introduction of artificial intelligence, robotics, or other new technology into the workplace. It also would require Caesars to offer retraining, severance, and continued benefits for those affected or laid off, said Ted Pappageorge, secretary-treasurer of Culinary Workers Union Local 226.

“As a package, we think this is the best contract we’ve ever had,” Pappageorge told reporters.

The deal, which must be approved by some 10,000 union-represented Caesars workers, is the first in a months-long labor standoff that threatened a strike at dozens of hotels and casinos. MGM Resorts International and Wynn Resorts Ltd. employ 25,000 workers who could still walk off the job if agreements can’t be reached by Friday morning.

Caesars also agreed to reinstate daily room cleaning, a practice that dropped off during the Covid-19 pandemic. The cuts eliminated jobs and overwhelmed staff who were given greater workloads, the union has said.

The agreement would require a 30-day notice for management to modify the uses of existing technology.

“It can be introduced, but part of the issue with artificial intelligence, the effects can be increased and it can learn,” Pappageorge said.

Some cash handlers, servers, and even bartenders have been replaced by technology already, he added.

Pappageorge said Caesars agreed to wage hikes that far exceed the last contract but would not say what they were, citing ongoing talks with MGM and Wynn.