A short history of labor relations in Las Vegas is furnished. A process for resolving disputes at the lowest possible level – the “First Step Process” has recently been adopted by several hotels (covering approximately 70% of the workforce). The process is described, as is the experience with its application. Approximately 5,000 to 6,000 grievances a year are reduced to 200 cases sent to arbitration, of which all but 30 or 40 are settled prior to arbitration.