Dive Brief:
- Workers at Rio Hotel and Casino in Las Vegas ratified a four-year collective bargaining agreement on Friday after threatening to strike, according to a news release.
- The group of 62 employees, represented by Teamsters Local 986, included front desk workers, laborers, warehouse workers and valet attendants. Together, they obtained higher wages, improved benefits and stronger workplace protections, per the release.
- The agreement came after workers voted to authorize a strike on Nov. 10 over unfair labor practices, per the release. That vote came after negotiations stalled following almost two years of talks with Rio owner Dreamscape.
Dive Insight:
The new agreement will provide workers with a 15% wage hike, better vacation policies and continued coverage under the Teamsters Health and Welfare plan, per the release. In addition, the new contract will also include “job protections against technology” as well as the opportunity for workers to enroll in the Teamsters 401(k) plan.
“Our members stood strong, and management had no other choice but to deliver,” Tim Vera, president of Local 986, said in the release. “This win belongs to every worker who refused to be ignored, and it proves that when we fight as one, we secure real improvements.”
Dreamscape did not immediately respond to a request for comment.
Salaries, wages and payroll-related expenses paid by hotels nationwide account for more than 32% of total revenue, according to data from the American Hotel & Lodging Association, shared recently with Hotel Dive. In 2026, those salaries, wages and benefits are expected to climb about 3% year over year to $131 billion, per AHLA.
Meanwhile, union hotel workers have continued to strike in recent years, asking for higher wages in order to meet the rising cost of living in cities including Las Vegas.
“All we asked for was a fair contract that allows us to do our job without worrying,” Malinda Zarcone, a front desk worker and steward at Local 986, said in the release. “We didn't want to strike, but we were ready if it came to that. Now we can come to work knowing that management listened and that our labor is respected."
The Teamsters represent almost 6,000 members at casinos and casino hotels, and the International Brotherhood of Teamsters represents 1.3 million people in the U.S., Canada and Puerto Rico, per the release.
“Management dragged out negotiations and our members held them accountable,” Tommy Blitsch, director of the Teamsters Convention, Trade Show and Casino Division, said in the release. “We don't tolerate delays and disrespect toward our members. We're always prepared to take action and win.”
