Former Mirage employee files labor charge against Culinary Union over severance package dispute

A former Mirage Hotel and Casino employee has lodged a formal labor complaint against the Culinary Workers Union Local 226, claiming that the union failed to fully inform employees about the severance package process following the property's closure. 

The complaint, filed on August 6 with the National Labor Relations Board (NLRB), accuses the union of not properly representing workers and of unfair practices related to employee grievances.

According to records obtained through a public information request, the complaint alleges the union acted arbitrarily, discriminatorily, or in bad faith by refusing to address workers’ grievances surrounding their employment status and the Mirage’s closure. 

The complaint also references super seniority and a denial of access as part of the alleged issues. The NLRB is responsible for overseeing such disputes, ensuring that unions and employers adhere to federal labor laws.

The former Mirage employee’s complaint specifically targets the union, not the Mirage’s new owners, Hard Rock Las Vegas. However, investigators are expected to request information from Hard Rock management to assess the validity of the charge.

The Mirage, a Las Vegas Strip icon that first opened in 1989, closed on July 17, 2023, after 34 years in operation. The closure came following the property's sale by MGM Resorts International to Hard Rock International for $1.08 billion. The South Florida-based hospitality group, owned by the Seminole Tribe, plans to demolish the Mirage's volcano attraction and build a 660-foot-tall guitar-shaped hotel tower. The new Hard Rock Las Vegas is slated to open in spring 2027.

In May 2023, Hard Rock announced that the Mirage would close within two months, leaving more than 3,000 employees jobless. The company said it would pay out approximately $80 million in severance packages. 

Around 1,700 of those employees were members of Culinary Local 226, the largest union on the Strip, which represents a wide range of service workers including housekeepers, cooks, porters, and banquet staff. At the time of the closure, Culinary had recently negotiated a five-year contract with the Mirage, which included provisions for the property's shutdown. 

Under the contract, employees were offered two severance options: $2,000 for every year of service, prorated for part-time workers, or a smaller retention bonus with continued recall rights via a priority hiring system. The severance was also subject to taxes and included pension and health fund contributions for six months.

However, some former employees claim that the union did not adequately communicate the details of these options. Several ex-workers allege that they repeatedly tried to meet with the union over the summer to discuss their concerns, but received little response. They argue that while they received a summary of the contract when it was ratified in December 2023, a full explanation of the collective bargaining agreement did not come until months later.

One of the workers who filed the charge, Melinda Rhodes, a banquet server and union shop steward, said many employees felt misled by the union during the contract negotiations. Rhodes expressed frustration that it wasn’t clear to workers that the severance options applied to both full-time and part-time employees.

Another former Mirage employee, who requested anonymity due to ongoing job searches, echoed Rhodes’ concerns, explaining that many workers were shocked when they learned the fine print of the severance options. She expressed particular worry for on-call workers, who had hoped their years of service would result in larger payouts.