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Robotics Businesses The Almighty Buck United States

MGM Considers Replacing Workers With Robots In Its Las Vegas Strip Properties (vegasslotsonline.com) 106

MGM, one of the largest global casino companies in the world, is considering replacing some workers with robots. The company's 2020 plan calls for reducing its workforce by about 2,100 people to save roughly $300 million in the coming years. Vegas Slots Online reports: Among those who could be replaced are cashiers and bartenders. Automatic technology that can make drinks would replace the bartenders and monetary transactions could be done through standard payment technology. There would also be mobile payment processors going around the floor with the wait staff, eliminating the need for cashiers. There is no indication as to how many such jobs would be replaced at the MGM properties. The unions and workers will not be happy with this news. Jobs will be lost and it may also violate the labor agreement that MGM struck with the unions last summer. The Las Vegas Culinary Union (LVCU), which represents bartenders, kitchen staff, and wait staff, reached a five-year deal in June 2018 with the MGM. The agreement guarantees that MGM will not implement any technology that would have a negative impact on employment. However, the news that the MGM is considering replacing some workers with robots could mean that the company is not willing to fulfill this agreement. MGM CEO Jim Murren unveiled the new "MGM 2020" plan earlier this year, describing it as a "company-wide, business-optimization initiative aimed to leverage a more centralized organization to maximize profitability and, through key investments in technology, lay the groundwork for the company's digital transformation to drive revenue growth."
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MGM Considers Replacing Workers With Robots In Its Las Vegas Strip Properties

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  • by Anonymous Coward

    That's what you all think.

  • by IonOtter ( 629215 ) on Friday March 08, 2019 @05:22PM (#58239986) Homepage

    If they want to replace the taxpaying workers with robots, then municipalities should tax each robot at a rate commensurate with the wages they would have lost from employees living in the area.

    There's nothing wrong with replacing people with robots?

    But there is most *definitely* something wrong with doing so when it screws everyone but the elite few at the top.

    • Re:Simple Solution (Score:5, Interesting)

      by ghoul ( 157158 ) on Friday March 08, 2019 @05:35PM (#58240064)

      We have had this debate once before. The Southern states wanted apportionment according to their population including slaves. The northern states wanted apportionment according to voters. They reached a compromise 3/5th. Lets do the same. All Robots will be assumed to have at least the minimum wage and 3/5th of that will be taxed at personal tax rates on the owner of the company. Wages not profits. Its easy to show zero or negative profits but no of robots * min wage *2000 hours *.6. Thats an easy formula and tax at personal income tax rates. If someone says robots dont take as many resources as people say thats why its taxed at 3/5ths.

      • Re:Simple Solution (Score:5, Insightful)

        by timeOday ( 582209 ) on Friday March 08, 2019 @10:08PM (#58241134)
        There is no meaningful way to define what a "robot" is, certainly not for purposes of replacing people. A self-checkout at the grocery store? A soda fountain at McDonald's? A big tractor on a farm that does what 120 peasants did at one time, or 30 sharecroppers with mules? Restricting it to anthropomorphic robots that correspond to 1 human would accomplish nothing, we keep imagining robots that way and they keep not being like that.
    • Re:Simple Solution (Score:4, Insightful)

      by ShanghaiBill ( 739463 ) on Friday March 08, 2019 @05:50PM (#58240152)

      municipalities should tax each robot at a rate commensurate with the wages they would have lost from employees living in the area.

      Everyone with a dishwasher can pay taxes for the scullery maid they didn't hire.

      We should also tax every phone with a keypad, since no switchboard operator is being paid.

      Printed books should be taxed to make up for the unemployed scribes.

    • Re:Simple Solution (Score:4, Insightful)

      by Kris_J ( 10111 ) on Friday March 08, 2019 @05:51PM (#58240162) Homepage Journal
      Or countries could actually tax businesses properly.
    • If they want to replace the taxpaying workers with robots, then municipalities should tax each robot at a rate commensurate with the wages they would have lost from employees living in the area.

      There's nothing wrong with replacing people with robots?

      But there is most *definitely* something wrong with doing so when it screws everyone but the elite few at the top.

      Pretty much since the dawn of time, machines that men build have been replacing people for labor....this especially increased since the industr

    • See this other comment I wrote, it might help you feel a little more like it's not all running out of control: https://hardware.slashdot.org/... [slashdot.org]

      While I acknowledge that you're right about 'The Few' (i.e. 'The Rich') wanting to control everything, remember that it's always been that way, and always will be that way; however one way or another, in the end, The People always end up getting their say in things. Our (U.S.) government may be flawed and in many cases leveraged by The Rich, but if you pay atten
  • MGM Considers Replacing Workers With Robots In Its Las Vegas Strip Properties

    So Futurama was right: the future will contain robot strip clubs.

  • by ghoul ( 157158 ) on Friday March 08, 2019 @05:29PM (#58240026)

    The casino industry works on tips. No one is going to tip a robot waitress or robot dealer. Their non tip wages are probably the same as the maintenance cost of the robots.

    • by Anonymous Coward

      The casino industry preys on robots who like bright lights and loud beeps.

    • The casino industry works on tips. No one is going to tip a robot waitress or robot dealer. Their non tip wages are probably the same as the maintenance cost of the robots.

      Totally agree. Also sexual harassment of cocktail waitresses will be eliminated, except for the drunken robosexuals.

    • by Anonymous Coward

      Money spent on tips is money that can't be spent betting.

    • If guests won't tip a robot, doesn't that mean they'll have more cash on hand, and will be more likely to tip the human casino industry workers? The fact that converting some of the jobs to robots means fewer human employees, would seem to actually work to the advantage of the remaining human workers when it comes to tips.
      • by ghoul ( 157158 )

        The point is that MGM pays so little to these folks (less than minimum wage as they get tips) that the robots will cost more in maintenance than what MGM pays in wages for these folks today so this is a financially bad decision.

      • by djinn6 ( 1868030 )

        The more likely outcome is they'll gamble all of it away and casinos will end up with what used to be tips.

  • by Anonymous Coward

    The age of no-skill labor is over.

  • Incremental (Score:5, Insightful)

    by rsilvergun ( 571051 ) on Friday March 08, 2019 @05:43PM (#58240120)
    That's sort of the problem. 2100 jobs isn't much in the vast scheme of things. But every company on earth bigger than a mom & pop is trying to figure out how to do this. And it's not just automation. It's stuff like better tech (portable payment devices that are cheap enough and reliable enough so you can have the girls handling out drinks replace your cashiers).

    It'll be the death of a thousand cuts. Eventually the job losses will put downward pressure on wages, then on sales, and then more layoffs and it'll spiral down. It's a classic race to the bottom. The only thing that can stop it is human reason and action from outside the system.
    • It'll be the death of a thousand cuts. Eventually the job losses will...

      The thing about the slippery slope is that it can become less slippery at any time. For example, casino customers might find that they prefer getting their drinks from friendly humans instead of robo-bartenders. With foot traffic going to competing casinos, suddenly MGM's cost savings are negated by lower revenue.

      People still sit down at poker tables with human dealers. Video poker has been around for a while now. What the customers pay for, the casinos will provide.

    • by ghoul ( 157158 )

      All you need to do is put the people to work on something else. Lets take a simplified example.

      1) Capitalists use automation to get super profits
      2) Unemployment rises
      3) Visionary convinces the capitalists the next big thing is a Amrs Colony
      4) Capitalist buy overpriced shares of a Mars colony corporation
      5) MCC builds huge factories to produce Mars ships and employs all the newly sacked employees
      6) MCC gets colonists from the dissatisifed folks who are scared of getting unemployed as automation spreads
      7) MCC

    • It'll be the death of a thousand cuts. Eventually the job losses will put downward pressure on wages, then on sales, and then more layoffs and it'll spiral down. It's a classic race to the bottom. The only thing that can stop it is human reason and action from outside the system.
      That statement amounts to spreading fear uncertainty and doubt -- and I'll give you the benefit of the doubt and say that wasn't your intent.

      Machines are tools meant to serve mankind. Plain and simple. What you're describing is
  • Robots can be fun (Score:5, Interesting)

    by SuperKendall ( 25149 ) on Friday March 08, 2019 @05:45PM (#58240124)

    I was on a cruise recently that had a robot bar - it was pretty well designed, as you used a tablet o order whatever kind of drink you wanted out of the different bottles of spirits and non-alcoholic drinks it had... it was pretty well designed, and built to be "showy" if you will as it prepared drinks. It was one of the more interesting things on the ship...

    • Which cruise line was it?

    • by antdude ( 79039 )

      Which cruise was this?

    • Was recently on Harmony of the Seas, one of the ships with this robot bar. Sure, it is fun once, but the novelty wears off. Especially when you find bugs in the system like being out of orange juice. A human would notice!

      However, I will say that I got a more consistent cocktail from the robot than the humans. That however is down to training.

  • "company-wide, business-optimization initiative aimed to leverage a more centralized organization to maximize profitability and, through key investments in technology, lay the groundwork for the company's digital transformation to drive revenue growth."

    Can't they start by replacing the MBAs with robots [youtube.com]?

    • There's a joke about the absence of personalities/souls in there somewhere. Left as an exercise for the reader.

  • I dunno, I remember the days when slot machines took coins and had big levers. Watching those mechanical things go round and round, suspense builds. Sometimes you hit a good combination and hear the clattering of coins dumping into bin. Nowadays slot machines are like video games, some people love it but I find it boring. It's just a flat screen, hell I can get that anyplace else so why go to Las Vegas (or Reno or whereever).

    Besides having someone pretty to serve drinks is much nicer than dealing with a "

    • by djinn6 ( 1868030 )

      You do realize gambling is illegal in most places right? Gambling on an electronic slot machine doesn't make it any more legal.

  • All True!

    Best Silicon Hooters!

    BOOZE!

    Gambling!

  • I think I'd replace my wait staff if they were costing me an average of $142,000 a year too.

  • by quonset ( 4839537 ) on Friday March 08, 2019 @06:33PM (#58240398)

    If Jim Murren is let go and replaced by a robot, that's another $14 million each year which can be saved, and that's in salary alone. Add in all the other perks he gets and that number could be near $20 million.

    In one fell swoop, and additional 6.66% could be saved of the total amount. And it could be done immediately.

    • I wonder how a robo-CEO would react to its robotic slot machine brethren down on the casino floor, getting constantly yanked off without their consent.

  • $300 million is the price to pay 2100 persons? At $11904 average per month, some of them must be very well paid.
    • Comment removed based on user account deletion
  • I want simga derby back!

  • A good bartender can't be replaced with some shitty robot full of peristaltic pumps and plastic tubing.
  • Given how poor service often is at bars and in the casino, this might actually be an upgrade. I don't expect a robot to be polite, but I hate it when the bartender or waitress is rude or complacent to the guests.

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