Union Mirage: Employee’s Fight for Fair Severance Sparks Controversy

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A former Mirage worker has lodged a labor charge against Culinary Local 226, claiming that workers were not adequately informed about how the severance package would be implemented after the property closed down. This complaint was filed on Aug. 6 and the National Labor Relations Board received records through a public information request. The allegations cited in the complaint include issues related to fair representation, including super seniority and denial of access.

The complaint stated, “During the past six months, the above-named labor organization, through its officers, agents and representatives has restrained and coerced employees in the exercise of the rights guaranteed in Section 7 of the National Labor Relations Act, by its actions, including, but not limited to: refusing and (sic) accept the grievances of its bargaining unit employees concerning their status as employees and the closing of the Mirage Hotel and Casino for arbitrary, discriminatory or in bad faith.”

A letter was sent to Mirage hotel-casino management indicating that the charge was not filed against the employer, however, investigators would require information from managers regarding the merits of the charge. Both Hard Rock Las Vegas and Culinary officials declined to provide comments on this matter.

The Mirage officially closed its doors on July 17 after 34 years of operation on the Strip. The property played a significant role in shaping Southern Nevada by introducing a new era of megaresorts when it opened in 1989. MGM Resorts International sold the Mirage to Hard Rock International for $1.08 billion, with the transaction completed in December 2022.

Subsequently, Hard Rock announced plans to build a 660-foot-tall guitar-shaped hotel tower on the site formerly occupied by the Mirage’s volcano attraction. The new Hard Rock Las Vegas is set to open in spring 2027. In May, it was decided that the property would close within two months, resulting in over 3,000 employees losing their jobs. The company estimated that $80 million would be paid out in severance packages.

Around 1,700 employees were represented by Culinary, the largest union shop on the Strip, which includes housekeepers, servers, banquet workers, porters, cooks, and other staff. A new five-year contract was negotiated between the union and the Mirage in December 2023, which included provisions for property closures that became relevant soon after.

Employees had the option to receive $2,000 for each year of service worked, adjusted for part-time hours and subject to taxation. Alternatively, they could opt for a smaller retention bonus along with continued recall rights through a priority hiring system. A summary sheet from Dec. 14, 2023, described the service recognition bonus as “generous.”

Throughout this process, concerns and complaints were raised by various employees regarding the handling of the closure and the severance packages. The labor charge against Culinary Local 226 highlights the challenges faced by workers during this difficult transition period.

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