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Detroit casino faces strike after union rejects proposed labor deal

Detroit businesses have many important business planning and contractual issues which can impact the direction that a business takes. An experienced business transactions attorney can help a company determine what type of legal business structure is consistent with the goals of the company and also direct a business on how to properly structure employment contracts.

How an employment contract is written could be the determining factor in whether a company remains profitable. Most private employers have a broad amount of discretion in drafting employment contracts as long as the contracts do not violate existing labor law. Some employers have to deal with labor unions however, which can complicate the formation of employment contracts. One high-profile labor dispute recently culminated in an impasse when a labor union rejected the labor deal proposed by MGM Grand Detroit Casino.

Approximately 6,000 workers at the casino are represented by five unions. The casino proposed a labor deal that would have given employees a slight pay raise but also would have increased employee health care costs. The unions bargained jointly and rejected the proposal yesterday, which means that picketing can begin around the casino as early as tomorrow.

Unions at MotorCity Casino Hotel and Greektown Casino-Hotel approved similar contracts but employees of the MGM casino rejected the deal because that casino is viewed as having a stronger financial position than its competitors. The labor deals at the other casino passed with strong support but the MGM deal was allegedly voted down by a margin of 1,500 votes against the deal and 300 votes for the deal.

It is unclear how long any prospective strike will last or whether a new labor deal will be reached in the near future.

Source: Detroit Free Press, "MGM Grand Detroit casino workers reject labor contract," Matt Helms, Oct. 27, 2011

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