Station Casinos, a subsidiary of Red Rock Resorts, Inc. (NASDAQ: RRR), has reportedly agreed to a settlement with the National Labor Relations Board (NLRB), making Palace Station the second Las Vegas hotel-casino owned by the Summerlin-based gaming company to be unionized.
The settlement agreement comes after the court was petitioned for a new vote in October by the NLRB after the union lost a 266-262 vote to unionize at Palace Station.
In addition to Palace Station’s workers now being represented by the Culinary & Bartenders Unions, under terms of the settlement, Station Casinos agreed to reimburse workers at Boulder Station, who the union alleged were excluded from a promise made by the company for lower health-care costs for all of its other Las Vegas properties, after they voted 355-177 in September to unionize. Following that, in October, the company reportedly notified workers who were not unionized that their lower health-care premiums would stay the same throughout 2017. Station also allegedly gave workers at Palace Station other valuable benefits as they decided whether or not to unionize, according to News3LV.
The tactics reportedly used by Station Casinos are in violation of the National Labor Relations Act, according to rulings by the NLRB and the U.S. Supreme Court. After investigating the unfair labor practices charges filed by the unions, the Regional Director of the Las Vegas Region of the NLRB reportedly indicated that he would pursue an order that would require the alleged violations be corrected by Station Casinos and bargain with the workers at Palace Station, according to the report.
According to Station officials, in order to avoid a long drawn out dispute, the company has agreed to settle the charges and recognize Palace Station’s unionized status. In addition, the company also agreed to make up the difference in health care premium payments made by Boulder Station employees.
In an emailed statement, the company said, “Rather than engage in lengthy, disruptive and distracting proceedings, the company has decided that it would be in its best interests to proceed with negotiations with the union as the collective bargaining representative at Palace Station for the eligible bargaining unit team members at that property,” according to the Las Vegas Review-Journal.
Contract talks between Boulder Station and the workers there and the unions have been ongoing since December and Palace Station is expected to join in collective bargaining contract talks soon.
In a release announcing the settlement, Secretary-Treasurer for the Culinary Union, Geoconda Arguello-Kline, said, “We commend the Palace Station workers for their courage and resilience in the face of the company’s massive anti-union campaign,” and, “We look forward to starting contract negotiations so that workers can have fair wages, job security, and good health benefits,” according to the news agency.
In addition to the two Las Vegas properties, the union is also established at the Graton Resort and Casino in Northern California.