The Culinary Union and Virgin Hotels Las Vegas are closer than ever to securing a deal for more than 700 non-gaming employees at the off-Strip casino-resort, but they are still miles apart. 

In a labor stalemate that’s grown heated in recent weeks, the union last week publicly rejected Virgin’s “Last, Best and Final Offer,” which proposed raises of $1/hour, starting in 2027.

“It’s a horrible proposal,” Culinary Union Secretary-Treasurer Ted Pappageorge said of the document released two days earlier. “It’s woefully inadequate.”

Pappageorge led a virtual press conference last week with about 20 media members in attendance. 

We took a short break from updating you on the best casino bonuses to join the conference for ourselves.

Also on the recorded Zoom call were three worker representatives, sharing stories about the hardships they face working for the one employer that won’t come to terms similar to what 28 other companies in Las Vegas have already accepted. 

Culinary Union boss Ted Pappageorge leading a media call where he scoffed at Virgin's most recent "offer" of zero wage increases for the next three years.

“We’re asking this company to step up to the same standard that the Rio and the Sahara and the Stratosphere have stepped up to months ago,” Pappageorge said. “It’s not a high bar.”

The primary sticking point is pay and benefits. The union is seeking raises of $9.21/hour over five years, with $3.11/hour coming in the first year. This amounts to an average increase in pay and benefits of 10% immediately, and 32% over the span of the contract.

After insisting for months that the company couldn’t afford wage increases, Virgin finally budged last Tuesday when it offered workers an extra $1/hour for years four and five of any new deal.  

Lone Remaining Holdout

As of tomorrow, June 1, Virgin employees will have been working without a contract for a year..

Since the start of 2024, there have been a few other independent casino holdouts. But eventually all came to terms with the Unite Here Culinary and Bartenders Unions, except for Virgin. 

In April union members started picketing at Virgin. And in May, they staged a “48-hour strike.” Union organizers claimed victory for disrupting operations at bars and restaurants at the casino-resort.

“Virgin Las Vegas workers sent a strong message that this company needs to do the right thing for their employees and our community,” Pappageorge said after the strike concluded. “Every casino on the Las Vegas Strip and Downtown Las Vegas has already settled a fair contract and it’s time for Virgin Las Vegas to do the right thing.”

Virgin, meanwhile, seemed unfazed. In the days before the strike they let employees know that it was their right to strike and that jobs would still be there when they returned after the work stoppage slowdown. And then, with 100 or so strikers marching outside, management turned it into something of a party on the inside. 

Employees who came to work had pizza in the break rooms, as managers literally rolled up their sleeves to work alongside those who didn’t strike. For the customers, drinks were free across the property during the strike, which encouraged better-than-usual tipping.

‘Last, Best and Final’ Offer?

That brought us to last Tuesday, when Virgin Hotels Las Vegas parent company JC Hospitality provided a detailed 3-page  letter to the Culinary Union (and select social media mavens) outlining their rejection of the union’s demand on wages, and trying to paint Culinary officials as bad faith negotiators, bullying them with hardball tactics.

When akfxoqsd.shop reached out to Virgin, they sent us a statement about their bluff offer: 

Virgin Hotels Las Vegas made a Last, Best and Final Offer to the Culinary Workers Union Local 226 and Bartenders Union Local 165 on Tuesday May 21. We have made every effort to negotiate in good faith, prioritizing the well-being of our team members and continued operation of our property. 

We do not believe the Union has bargained in good faith. The Union has made misleading statements to our team members and to the press about the negotiations and the proposals we have put before them. Despite our best intentions, the Union has chosen to engage in “take it or leave it” bargaining. Their tactics have made it impossible to negotiate a complete agreement. Their tactics are hurting our team members. Due to this, we have made a Last, Best, and Final Offer in an effort to reach a fair resolution.  

We look forward to the outcome of the bargaining committee’s vote on our Last, Best and Final Offer.

What Happens Here …

The union balked at Virgin’s proposal. Publicly, union leaders called it a publicity stunt, and dismissed the feigned finality of their offer. 

“When a company bargains in the press, they’re usually not serious,” Pappageorge said. “But we’re available to bargain.”

Currently, Virgin is owned by JC Hospitality, the Las Vegas face for a consortium of companies that includes Juniper Capital, Virgin Group, LiUNA, Fengate Asset Management, Dream, and Orlando Development. 

Pappageorge likens the group to “Wall Street banks and hedge funds” that are used to “running over workers elsewhere.” But, he says, “That doesn’t happen here. Companies have to bring money for workers here, not just for infrastructure.”

In 2018, Virgin Hotels bought the Hard Rock, an off-Strip property on Harmon Avenue and Paradise Lane, for $500 million. They then spent another $200 million to renovate the property for a grand reopening in 2021.

“They’ve got deep pockets,” Pappageorge said. “If you bring 700, 800 million dollars to invest in a property, some of that has to be allocated for workers. That’s the standard we have in Las Vegas.” 

Next Steps?

Aaron Mahan is a food server who has been at the property since it opened as the Hard Rock in 2005. He became a union member a few years later. 

He shared a story of telling a coworker who had been there for only three years to find a new job on the Strip where “they could be making $5-7 more per hour.” 

When asked why he doesn’t take his own advice, Mahan said he didn’t really have that option with nearly 20 years under his belt. “It’s my home,” Mahan explained. “I have seniority benefits that I don’t want to lose. The managers have changed over the years, but [the workers] stay the same.”

Despite the supposed finality of Virgin’s offer, the two sides have begun sending each other dates in early June to resume negotiations. 

“I hope they come to the table in the near future with a better proposal,” said Lee McNamara, a union representative and head cook at Virgin. “I really hope that the workers and the union and the company can come to a resolution and get this done. Because it needs to be done.”