Mirage worker files complaint against union over severance package

A former Mirage worker has filed a labor charge against Culinary Local 226, alleging workers were not fully informed about how the now-closed property’s severance package would be administered.

Records received via public information request from the National Labor Relations Board show that a former Mirage worker filed a complaint against the union on Aug. 6. The allegations listed are related to duty of fair representation, including super seniority and denial of access, according to the labor board.

“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,” the complaint says.

A letter was also sent to Mirage hotel-casino management. It states the charge wasn’t filed against the employer but says investigators will need information from managers related to the merits of the charge.

Both Hard Rock Las Vegas and Culinary officials declined to comment.

Employees out as part of closure

The Mirage closed on July 17 after 34 years on the Strip. It changed the trajectory of Southern Nevada by ushering in a new era of megaresorts when it opened in 1989. MGM Resorts International sold the property to Hard Rock International for $1.08 billion, with the deal closing in December 2022.

Not long after, Hard Rock — the South Florida-based hospitality conglomerate owned by the Seminole Tribe — announced its plans to construct a 660-foot-tall guitar-shaped hotel tower along Las Vegas Boulevard, where the Mirage’s iconic volcano attraction sat. The newly designed Hard Rock Las Vegas plans to open in spring 2027.

Early on, the new operators said they were unsure of whether it would be a rolling construction project that would keep the property partially open or a full closure. But in May, Hard Rock announced it would close in two months and the more than 3,000 employees would lose their jobs. The company expected to pay out $80 million in severance.

About 1,700 employees were represented by Culinary, the largest union shop on the Strip, which represents housekeepers, servers, banquet workers, porters, cooks and other workers. The union negotiated a new five-year contract with the Mirage in December 2023, which included a section on property closures that became relevant months into the new contract.

Workers could choose to receive $2,000 for every service year worked, prorated for part-time work and subject to taxes. They could also choose an option that included a smaller retention bonus and continued recall rights through a priority hiring system, according to option forms and the collective bargaining agreement shared with the Review-Journal.

Employee concerns

Former Mirage employees who say they are behind the labor charge argue the union did not communicate the fine print of the severance options and did not respond to their repeated requests to meet this summer about their concerns. They say they received a summary of the contract when it was ratified last winter, but a full breakdown of the collective bargaining agreement came months later.

A summary sheet shared with the Review-Journal, dated Dec. 14, 2023, describes the service recognition bonus as “generous.”

“The service recognition bonus is $2,000 for every year of service, 6 months of health fund contributions and 6 months of pension contributions,” according to the document.

Melinda Rhodes, a banquet server employee and a shop steward, said she felt the contract details were not thoroughly explained to rank-and-file workers during the negotiations and ratification period.

“It wasn’t until after the fact that the majority of people became aware that it was full-time, part-time and all that,” she said. “We were very misled — also with the rehire.”

Other workers who spoke to the Review-Journal said they worry that they’ll lose their priority standing at the new property if its opening is delayed beyond 36 months. Rhodes said union leaders encouraged workers to choose the severance package option because of the timeline associated with the recall rights.

“They kind of pushed everybody to choose option A because they said option B was a risk,” Rhodes said. “‘They can’t guarantee your job, it’s risk, so just take option A and go on with your life.’”

A former cocktail server, who was granted anonymity because of fear she wouldn’t be able to find a new job if her name was used, said her coworkers were shocked and angry when they realized the details of how the severance would work. She worried for the on-call workers who expected to get a larger severance because of their years working at the property.

“I feel that we didn’t really understand what they were saying about these options,” she said. “It’s like they knew this was coming down and the union went ahead with whatever worked out.”

Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.