May 21, 2024

Ted Pappageorge, President

Terry Greenwald, Secretary-Treasurer
Vernisha Ward
Mitch Streeter
Virginia Velasquez
Sarah Varela
Bartenders Union Local 165 and Culinary Workers Union Local 226
1630 S. Commerce Street
Las Vegas, NV 90102

DELIVERED BY EMAIL

Re: Last, Best and Final Offer

Dear Ted, Terry, Vernisha, Mitch, Virginia and Sarah:

At our last bargaining session Chris Magoulas, speaking for the Union, spent several hours describing his
views on bargaining and economics. He did not dispute that Virgin Hotels Las Vegas cannot afford the
Union’s opening wage and benefits demand. More importantly, he did not make a counteroffer. Your
opening wage and benefits demand remains unchanged since February 1, 2024.

We appreciate that you finally agreed to some of the proposals we made on March 21. You have never
responded to the subcommittee proposals we made on February 1. We appreciate that you accepted our
offer to revise those proposals based on our desire to avoid further delay. We sent those revised proposals
to you immediately after our bargaining session ended last Tuesday, May 14. Although you suggested at
the table that we could schedule a Zoom meeting to work through and finalize the subcommittee proposals,
we have now asked to set such a meeting twice. We have not received a response.

In writing, we have requested to resume negotiations twice and we have offered June 7 as a potential date
to do so. We have not received a response. You have not provided us with alternate dates. It has been a
week since we sent them, but you have not responded to the subcommittee proposals we revised based on
team members’ feedback at the April 19 meeting. Despite a full day of negotiations on May 14, including
discussions around wages and benefits, you have not made any change to your opening wage and benefit
demand. Based on Mr. Magoulas’ statements, we believe you have no intention of doing so.

Your decision to make an opening “take it or leave it” demand, in spite of our openness with you in January
2024, was not solution-oriented and has made it impossible for us to come to agreement to this point. We
believe that your continued insistence that we negotiate against ourselves is unfair. Your failure to bargain
in good faith is harming our team members. We want to bring negotiations to a close so that everyone at
Virgin Hotels Las Vegas – management and all team members – can focus on our business and our guests.

Because you have not responded to our requests to schedule negotiations, Virgin Hotels Las Vegas’
Last, Best and Final Offer is attached for your consideration. We have modified our wage and benefit
proposal for a fourth time. It continues to guarantee benefit contributions for the first three years. We have

JC HOSPITALITY LLC. | 4455 Paradise Road Las V egas NV, 89169 | j chlv.com
asked that those years be treated as a “runway,” giving Virgin Hotels Las Vegas time to stabilize its
business. For the last two years of the collective bargaining agreement’s term – October 1, 2026 -
September 30, 2027 and October 1, 2027 - September 30, 2028 – we want to provide our team members
with the certainty that there will be a wage increase. For that reason, instead of reopening the contract
for economic negotiations at that time, as we had offered in our last proposal, we are proposing a definitive
$1.00/hr package increase for each of those years.

The remainder of our offer consists of our existing tentative agreements, the subcommittee proposals we
sent on May 14, and those portions of our March 21 proposal – such as the housekeeping language in Article
16 – to which you have never formally responded.

Collectively, the existing tentative agreements and our offer address the issues that you and our team
members have said are important.

For team members, the offer includes:

 Economic security around Health & Welfare, pension, and other benefits. With the modification
to years four and five, it provides a package that will result in a guaranteed wage increase:
 Total Package Increase:
o Year 1 (Jun 1, 2023) = We will pay an additional $0.51 per hour worked dedicated to
Health & Welfare and Pension and other increases for Fund Contributions as defined in
Article 27.03.
o Year 2 (Oct 1, 2024) = We will make increased Fund Contributions as required by Article
27.03. We estimate that this will increase the Economic Package by approximately $0.41
per hour, which includes $0.10/hour in pension.
o Year 3 (Oct 1, 2025) = We will make increased Fund Contributions as required by Article
27.03. We estimate that this will increase the Economic Package by approximately $0.41
per hour, which includes $0.10/hour in pension.
o Year 4 (Oct 1, 2026) = A total package increase of $1.00 per hour, allocated to wages and
benefits by the Union pursuant to Article 27.03.
o Year 5 (Oct 1, 2027) = A total package increase of $1.00 per hour, allocated to wages and
benefits by the Union pursuant to Article 27.03.

 Reduction of workload per shift for Guest Room Attendants from 15 credits to 14 credits. A full
point reduction versus previous contract.
 Addition of Biomedical Hazard fee for Utility Housekeeping/Houseman from $0 to $10 per
event.
 Increase in bidded float/varied station Guest Room Attendant positions from a maximum 15 full
time to a maximum of 30 full time positions.
 Transition/addition of certain overnight porter duties (EVS) to the bargaining unit for public
bathrooms, ashtray and trash cans.
 Addition of Biomedical Hazard fee for EVS porters from $0 to $10 per event.
 Increase in Employer Sponsored Group Dining Experiences, receiving a guaranteed eighteen
percent (18%) gratuity calculated off the retail pricing, not to exceed ($200) per employee per
event.
 Increase of gratuity from 15% gratuity to 18% gratuity calculated off the menu retail price on
all complimented food and beverages.

JC HOSPITALITY LLC. | 4455 Paradise Road Las V egas NV, 89169 | j chlv.com
  Increase in total service charge by 1% for banquet department Employer-sponsored.
promotional complimentary events. This increase will be split as detailed in contract.
 Banquet Service charge increase from 22% to 23% plus the addition of a notification
requirement for future increases. The Employer will notify the Union and discuss the manner in
which the additional service charge will be distributed.
 Increase of banquet service charge from 14.48% to 15.00% (of the 23% total service charge)
plus the addition of bartender, cocktail, and under minimum fees of a banquet meal period shall
be divided evenly (based on the above percentages) among Banquet Servers, Banquet Cocktail
Servers, Banquet Bus Persons, and Banquet Bartenders who work the meal period.
 Banquet Apprentice Bartenders will receive a (.5) value of the evenly distributed service
charge.

For the Union, the offer addresses matters that the Union identified as “strike” issues:
 Owners and Successors
 No-Strike Clause
 Workload reductions
 Safety

We ask that you present our offer to the committee and the bargaining unit for a vote.

We regret that negotiations have come to this. Bargaining unit wages have increased more than 30% since
2021. We also entered the Culinary Health Fund, and to that end, the attached offer recognizes the
importance of that benefit by ensuring that Virgin Las Vegas will make required increases in contributions.

We understand that you wish we could agree to your opening economic demand. We simply cannot
afford it, and thus far you have refused to make any alternative proposal. Please give our team members a
voice in this process and present our proposal for consideration and a vote.

Sincerely,
JC HOSPITALITY LLC

Kate Hay
Chief Human Resources Officer

Cc Cliff Atkinson
Kate Hay
Chad Konrad
Lia Rispoli
Paul Trimmer

JC HOSPITALITY LLC. | 4455 Paradise Road Las V egas NV, 89169 | j chlv.com