Sodexo, a food service company, will take over some of the food and beverage outlets at the Palms resort, a move a Las Vegas union says threatens hundreds of people who work at the off-Strip property.
The Paris-based firm will take over operating 24 Seven Café, Bistro Buffet, in-room dining, and the employee dining room at the resort on Nov. 2.
Some 220 workers have been offered one of three options, the Palms said. Employees can either apply for positions with Sodexo at their current pay rates and seniority, apply for jobs at other Palms operated outlets, or if they decided to leave employees will receive severance packages based on their time with the company.
“Palms looks forward to collaborating with this exceptional culinary brand and expects a superior, quality experience for both our guests and team members,” the casino-resort said in a statement. Palms officials declined to talk with KNPR’s State of Nevada beyond issuing a statement on Thursday.
Workers were informed last month of the Palms’ plans through a letter. However, Culinary Local 226 claims turning over some in house operations to a third party operator was done because the union wants to organize the Palms restaurant employees.
The Palms said it had “first started discussions with Sodexo in early 2015,” while the first time the casino’s management knew about the union’s organizing efforts was on June 4.
“At the time, management was presented with a letter signed by 26 Palms’ employees requesting that the company remain ‘neutral’ about the issue of union representation,” the casino said. “Palms estimates that the applicable bargaining unit … would constitute approximately 914 employees and therefore Palms estimates that the 26 signatures represents less than 3 percent of the applicable bargaining unit.”
Palms management said it has not been made aware if any other petitions by the Culinary since June 4.
The Palms resort was purchased in 2011 by private equity firms TPG Capital and Leonard Green & Partners. Currently, TPG Capital has $67 billion in assets and Leonard Green & Partners has $15 billion in assets.
“We urge private equity first to create sustainable jobs in Las Vegas,” said Geoconda Arguello-Kline, secretary-treasurer of the Culinary Union. “The Palms decision to outsource hundreds of positions is disappointing.”
Geoconda Arguello-Kline, secretary-treasurer, Culinary Union