Virgin Hotels Las Vegas is grappling with the longest open-ended strike on the city’s resort corridor in decades, as a standoff with the Culinary Union over wages and working conditions shows no signs of resolution.
The strike, which began on November 15, has seen hundreds of hotel workers picketing for better pay and benefits. Union leaders argue that the off-Strip property’s wealthy ownership, which includes a Canadian pension fund and Virgin Group founder Sir Richard Branson, should do more to meet workers’ demands.
Virgin Hotels contends that the union’s demands are unsustainable given the property’s weaker financial position. The resort has pointed to dismal casino earnings, with losses exceeding $12 million over the past two years, and cautioned that similar agreements with other resorts have led to layoffs.
“The Culinary Union’s current demand is not financially sustainable for Virgin Hotels Las Vegas,” management said in a statement to The Sun.
Shortly before the strike started, the resort proposed a 30-cent annual wage increase over five years, which union leaders dismissed as inadequate. Earlier offers included no raises for the first three years.
The union, representing culinary and bartender workers, is demanding contracts comparable to those agreed to by other Las Vegas resorts. Ted Pappageorge, secretary-treasurer of Culinary Union Local 226, called Virgin’s proposals a “slap in the face.”
“Sixteen months, they offer no raises for years, and it’s a slap in the face to these workers who have been loyal to this company,” Pappageorge said.
Union leaders have also highlighted Virgin’s ownership resources, including the backing of one of Canada’s largest pension funds with $7 billion in assets. “If they don’t agree to our standards, they should leave Las Vegas and go back to Canada,” Pappageorge said.
Negotiations have been marred by accusations of bad-faith bargaining. Virgin Hotels claims the union has failed to engage in meaningful talks since January, while the union argues the resort is unwilling to match the standard set by other properties.
The Culinary Union has rallied support from its membership, with over 600 members signing a petition rejecting Virgin’s latest offer and 99% voting to authorize the strike.
“You wanted our vote, and here it is — NO!” the petition reads.
The strike has underscored tensions between labor unions and the resort’s private equity-backed ownership. The union has appealed directly to Canadian union members, urging solidarity with striking workers.
Pappageorge said: “In Las Vegas, we fight these hedge funds and big private equity companies that bring billions, like they’ve done here, and they bring no money for workers.”