‘Final offer’ from Virgin Hotels Las Vegas to be refused by culinary union

LAS VEGAS (KLAS) – The “last, best, and final offer” for the remaining Las Vegas hospitality employees without a new five-year contract is referred to as “horrible” and “laughable” by its union and members.

Over 700 employees of Virgin Hotels Las Vegas are at the mercy of the culinary union and their employer to agree on a new contract, as every other resort property with workers represented by the union has since members overwhelmingly authorized citywide strikes in September 2023. The specific contract expired last June.

JC Hospitality LLC, the owner of the resort on Paradise Road and Harmon Avenue, sent the media a letter addressed to Culinary Union leaders, dated May 21 and titled “Last, Best and Final Offer.” In it, its chief human resource officer claims they “simply cannot afford” the union’s wage and benefits demands.

Ted Pappageorge, secretary-treasurer of Culinary Union Local 226, said the offer was the first time in five months of negotiations that JC Hospitality offered any kind of wage increase. The letter indicated an offer of minor healthcare and pension contribution increases within the first three years, followed by “total package” increases of $1 an hour for the last two years.

In short, employees would see hourly wage increases of 49 cents in 2026 and 2027 only, as the other 51 cents are allocated to benefit contributions.

Pappageorge said the other 27 independently operated properties they represent agreed to wage increases of $3.11 in the first year and $9.21 over the entire five-year contract.

“It’s still a horrible proposal,” Pappageorge said during a virtual news conference Thursday morning. “When a company spends a lot of time bargaining the details to the press, that means they’re not really that serious.”

The letter further accused the union of not returning to the bargaining table in certain instances, claiming the resort owner offered June 7 as a potential date to resume negotiations. The union’s negotiating committee is partly comprised of resort workers who take unpaid time off to participate, according to Pappageorge.

“That’s a Friday. That’s when workers are going to make money. We’ve told the company for months, we can’t bargain on Thursdays and Fridays,” Pappageorge said, while also claiming they’re “available” to bargain when the owner is.

While much other language within the contract, like worker safety and protection from technology replacement, is reportedly set, wage increases remain the last hurdle. The negotiating committee is now reviewing the “last, best, and final offer” before confirming a dare to return to the bargaining table.

Representatives of the resort did not respond to 8 News Now’s request for an interview or comment Thursday. The resort filed an unfair labor practice suit against the union with the National Labor Relations Board two weeks ago.

The Mohegan Tribe operates the casino portion of the property while Hilton operates the hotel portion.

The tribe, for one, does not report revenue at its individual properties across the United States, but it does report cash flow or the amount of money going in and out of the casino. Through the last reported period in 2023, over $3 million in cash flow was recorded, which is more than a 430% drop from the prior year.

“Are they broke? You should ask them that. Are they nearing bankruptcy?” Pappageorge said. “We’re dealing with Wall Street Banks and hedge funds here, unfortunately.”

Resort employees, like Food Server Aaron Mahan, say time’s ticking before they pack up.

“The offer, to me, was laughable,” Mahan said during the news conference. “I’ve been there for so long. My seniority, I’ve been there since 2005. It’s my home away from home.”

The first Culinary Union-led strike in over two decades was held at Virgin Hotels Las Vegas earlier this month for 48 hours. The largest wage increases within the union’s 89-year history were secured this year, totaling about $3 billion over five years for over 50,000 employees, according to the union.

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