MGM to use contract workers, charge for valet

LAS VEGAS - Valet employees with MGM Resorts International just learned they will no longer be employed by the resort company, but will be hired by a company that will contract with the MGM.

This comes after the MGM already announced it plans to start charging a fee for valet and self-parking.

In a 3 p.m. meeting, valet employees were told they would be hired by a company called SP+. That company will contract with MGM Resorts International properties. Employees were told the company will match compensation, health benefits, paid time off, and employees will retain their MGM seniority.

The decision impacts all valet employees at Aria, Vdara, Bellagio, Mandalay Bay, Delano, MGM Grand LV, The Mirage, New York-New York, and Monte Carlo.

Discussions with union representatives are underway at Circus Circus, Excalibur and Luxor.

Some MGM valet workers fear they could lose their jobs.

'It's a definite possibility," one worker, who asked to not be identified, said. "A lot of fellow employees are already looking to transfer with other positions in the company, so they can stay with MGM."

The worker says he has worked as a valet for an MGM property for 10 years and was shocked to hear the company is outsourcing some 400 current valet employees to SP+.

"It's going to impact a lot of people, not only employees, but also guests," he said.

MGM Resorts International recently announced a $90 million parking strategy that includes charging for self-parking and valet. It is the first major casino company to make that announcement. 

"In seeking to provide the ideal solution for our customers, our employees, and our company, we determined the best-practice operation of our enhanced parking facilities required an expert hand," said Corey Sanders, COO, MGM Resorts International.

The valet worker says using valet service could cost $15 - $20 per night, and that could cut what he earns in tips by 50 percent.

"People have house payments, car payments. They have children," he said.

He says he and other workers are considering other jobs in the company or may leave altogether, not trusting what their new bosses could do in the future.

"It's a sad state of things for MGM to go this way, and who knows who will follow suit and what will happen?" he said.

The transition is scheduled to happen in the next 60 days.

SP+ is a Chicago based company.


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