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Workers approved the agreement late Christmas Eve after talks with a federal mediator a day earlier.
The agreement covers 320 maintenance workers at Luxor, Excalibur and Circus Circus, an official with the International Union of Operating Engineers Local 501 said Monday.
Union business manager Jim McLaughlin said the vote was 253-47 to accept an offer from the Mandalay Resort Group, that includes annual raises of 85 cents per hour each year of the contract. Current workers will receive an 85 cents-per-hour raise to $21.69.
McLaughlin said the agreement was struck when management decided to eliminate a two-tiered contract offer from their proposal. In return, the union accepted a wage structure in which new hires will earn $3 per hour less than existing workers for their first two years of employment.
"Once they took the two-tiered proposal off the table, things worked out from there," McLaughlin said.
He added that a walkout by the employees had been scheduled and could have hindered operations at the three resorts and at several rides at the Circus Circus Adventuredome.
Mandalay Resort Group management was unavailable for comment Monday.
The two sides had met several times with a federal mediator since fall to no avail. On Dec. 17, the union informed Mandalay Resort Group that it was severing the contract extension that began in March when labor agreements covering maintenance workers and other trades expired. Workers had voted in September to authorize a strike but Mandalay and the union entered negotiations with a federal mediator.
In response to the strike possibility, Mandalay Resort Group took out three separate display ads in the Review-Journal and Las Vegas Sun last week, seeking experienced maintenance engineers and slot machine technicians for the three properties and engineers to maintain the rides at the Circus Circus Adventuredome.
Earlier this year, Local 501 completed contract negotiations for a new five-year agreement with other properties covered by the contract, which are Bally's, Caesars Palace, Flamingo, Harrah's Las Vegas, the Jockey Club, Las Vegas Hilton, Riviera, Sahara and Tropicana. The 780 Local 501 workers at the other properties agreed to about $4.30 an hour increase in wages and benefits.
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