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Detroit — The Detroit City Council is standing by the 3,700 workers on strike from the city’s three casinos, even as the ongoing strike could put hundreds of thousands of dollars a day in tax revenue to the city at risk.
In a unanimous vote Tuesday, the council approved a resolution in support of the striking workers after more than 700 from MGM Grand Detroit, MotorCity Casino and Hollywood Casino at Greektown flooded the Coleman A. Young Municipal Center and overflowed into Spirit Plaza. In a sea of blue T-shirts reading “Detroit Casino Council Solidarity,” the crowd appealed to city leaders and asked for their support “for fair contracts in a time of corporate greed.”
“Given the pandemic, we made the necessary sacrifices so the companies could stay in the green,” said Ulyssis Bryant, 34, a Motor City employee for 15 years. “We didn’t want to strike, this wasn’t our intention but was necessary because of those sacrifices.”
The casino workers in the full auditorium blew whistles and cheered for those who spoke in support during the public comment period. Council Pro Tempore James Tate led a chant, “This is what democracy looks like.”
“You need to keep fighting until you get equal work for equal pay,” said Councilman Coleman A. Young II.
Tuesday’s council resolution comes even though the casinos are one of the city’s most significant taxpayers. The three casinos generate an estimated $450,000 a day in wagering taxes to Detroit, city officials said Monday. Mayor Mike Duggan’s administration said it is prepared to “manage short-term disruptions” in tax revenue.
Duggan has had “regular conversations” with representatives and companies currently impacted by the strikes, said city spokeswoman Corey McIsaac Tuesday.
“He has offered assistance in any way that would be helpful, and those conversations are ongoing,” McIsaac wrote in a Tuesday email to The News. “The Mayor believes in the collective bargaining process and has encouraged the parties to reach a mutual agreement as soon as possible.”
The casino strike is one of three major walkouts by union-represented employees who have an array of pent-up demands partly fueled by concessions workers made during the pandemic.
More than 40,000 United Auto Workers members have been on a targeted nationwide strike since Sept. 15 against General Motors, Ford and Jeep maker Stellantis. On Sept. 13, about 1,100 Blue Cross Blue Shield of Michigan, or BCBSM, employees represented by the UAW across the state also went on strike. Blue Cross employees on strike include those who work in call center jobs and claims processing.
There are 690 employees of BCBSM who work in Detroit and are part of the UAW work stoppage, a company spokeswoman said Tuesday. The workers are protesting the outsourcing of jobs, such as call center employees, and what they contend are unfair labor practices and growing wage disparity.
Workers at the three casinos walked off the job last week. Contract issues include healthcare, wage increases, workload standards and job security.
All three casinos and their adjacent hotels remain open around the clock as usual but their websites note that some services are not currently available. The three casinos didn’t respond to request for comment on Tuesday.
Many of the casino workers in attendance at Tuesday’s Detroit City Council meeting declined to be interviewed, fearing termination for speaking out. Others said they were told they could not speak to the media by union representatives.
The first casino strike in the city’s history includes a broad range of dealers, cleaning staff, food and beverage workers, valets and engineers.
Wagering taxes collected from the MGM Grand Detroit, MotorCity Casino and Hollywood Casino at Greektown make up for the city’s third largest source of tax revenue, according to city financial documents. Aside from the $450,000 the city receives daily in revenue from on-site gaming at the three Detroit casinos, there also is the loss of income tax from striking workers. Income tax is the city’s largest source of tax revenue. Detroit’s income tax is collected from anyone who is paid for doing work in the city, including people who don’t live in the city.
This fiscal year, which started July 1 for Detroit, on-site gaming will generate an estimated $158.5 million in revenue for the city while internet gaming will generate an estimated $89.8 million.
In September 2020, workers agreed to a three-year contract extension with minimal wage increases to help the industry get back on its feet. Since then, Detroit casino workers have received 3% raises, noting that inflation in Detroit has risen.
Meanwhile, gaming revenue at Detroit casinos has surpassed pre-pandemic levels. In 2022, the Detroit casino industry generated a record $2.27 billion in gaming revenue they are on track for another record-breaking year in 2023, according to the resolution approved by Detroit City Council.
“Despite the rapid recovery of Detroit’s casinos, they are still operating with 1,500 fewer workers than before the pandemic, meaning that current employees are forced to shoulder the extra workload without additional compensation,” the resolution reads. “The Detroit City Council supports working people across every sector of our economy and recognizes that working people deserve respect, adequate workplace protections, and the right to a living wage.”
Industry gaming revenues have now surpassed pre-pandemic levels to reach a new record high. Detroit’s three casinos reported a combined $105.5 million in revenue for February, according to the Michigan Gaming Control Board.
“The City of Detroit is prepared to manage through short-term disruptions in revenue because the Mayor and City Council have worked together over the years to create a fiscal plan that is based on financial resiliency. We are hopeful that a fair agreement can be reached between the casinos and the casino workers’ unions soon,” said Jay Rising, Detroit’s Chief Financial Officer.
Young, the council member, said he stands with the casino workers as his father, former Mayor Coleman Young, fought on behalf of the casinos, “but they are now turning their backs on their workers that keep it running.”
“For them to be making the billion dollars they are making, how dare we not pay the workers what they have earned?” Young said to a roaring crowd.
City Council President Mary Sheffield thanked the workers, saying she stands in solidarity and that her office will be out feeding workers on picket lines.
“We appreciate what you all are doing and I believe this is a fight for the middle class throughout the country,” Sheffield said.
The city, meanwhile, is monitoring the impact of the strikes on tax revenues and is “prepared for the possibility of periods of economic downtown and has reserves established,” McIsaac said.
The city’s most immediate concern about financial impact is not the casinos, but some auto suppliers who are not on strike, McIsaac said. “Many suppliers do not have significant financial reserves and it’s important to find a way to protect the long-term job security of workers in auto supplier plants who are now facing real economic stress.”
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