Disney World
reaches deal with union to gradually raise its starting wages to $15 per hour, along with a $1,000 bonus if the proposal is approved.
Walt Disney World union workers would see starting wages rise to $15 an hour by 2021 under a “historic” agreement reached Saturday between the company and its largest union.
Under the proposed contract that would expire in 2022, the $10 minimum an hour pay will increase to $11 by December, $13 in September 2019, $14 in October 2020 and finally $15 in October 2021. Union employees will vote on the new contract Sept. 5-6.
The Service Trades Council Union, a coalition of six locals that represent 38,000 employees at Walt Disney World Resort, had been negotiating with Disney for about a year.
“These Union raises at Disney will benefit everyone in Central Florida. Disney did the right thing by raising wages,” said Jeremy Haicken, Secretary Treasurer of the Service Trades Council Union, in a statement that hailed the deal as “historic.”
In a statement, Robbin Almand, vice president of labor relations for Walt Disney Parks and Resorts, said, “We are thrilled our Cast Members will have the chance to vote on what is one of the highest entry-level service wages in the country. This represents a 50 percent bump in pay bringing starting wages to $15 an hour by 2021.’’
Disney union workers also would also receive $1,000 bonuses, an issue of contention for the union, said Matt Hollis, the new president of the Service Trades Council Union.
Walt Disney Co. had announced the bonuses in January after the GOP tax cuts, then later threatened to rescind them for Disney World union employees unless a new contract was approved quickly.
At Walt Disney World, the Service Trades Council Union represents a variety of employees, including attraction workers, merchandise sellers, custodians, drivers, hotel housekeepers and tech workers for the theme parks’ shows.
The deal comes as advocates have been pushing for a $15 “living wage” for employees in Florida and across the country.
Orlando attorney John Morgan wants to put a $15 minimum wage on the ballot in 2020. Disneyland union employees recently approved a new contract
that raises their pay to $15 an hour in January, three years before California’s minimum wage is scheduled to reach that level.
Asked for his reaction to the agreement Saturday, Orlando Mayor Buddy Dyer said, “We have a living wage in Orlando, so anybody that has a contract with the city has to comply with that. We can’t mandate that all companies do that. But we certainly encourage responsible companies that pay a living wage to look at achieving $15. Disney is the largest single-site employer in the country right here in Central Florida. So anything they do makes a statement to other companies.”
At times, the talks between Disney and the union were contentious.
After one bargaining session, Disney called in an independent federal mediator in August 2017 because the two sides were struggling to find common ground.
Union workers who demanded higher wages overwhelmingly rejected Disney’s previous offer in December that would given at least a 50-cents-an hour raise.
The union also filed an unfair labor practice in February over the $1,000 bonus although the National Labor Relations Board sided with Disney in a decision this summer.
Disney recently announced details on its plans to pay for hourly employees’ education in a new program starting this fall that will cost $50 million in the first year and an additional $25 million annually in future years.
Hourly employees will have their education paid for upfront by Disney for online courses and eventually in-person courses. Disney said employees were free to take classes on whatever they wished and were not required to stay at Disney after they finished their degrees.
Walt Disney Co.’s theme parks and resorts have been performing strongly, with revenues increasing by 6 percent to about $5.2 billion for the financial quarter that ended in June, the company reported.
It also opened Toy Story Land at Hollywood Studios to huge crowds June 30.