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Union members at Disney World reject the contract proposal

Disney World Labor Union Rejects Contract Offer

by Camille Davis
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Disney World’s recently proposed contract offer to its unionized employees was rejected. A minimum pay raise of $1 per hour per year was suggested in the contract, which was a five-year offer, for the 32,000 Disney employees who are members of six different unions. However, because the offer was regarded as insufficient, the employees’ unions advised them to reject it. 96% of the 14,000 workers who submitted ballots did so in opposition to the offer, which was the majority opinion.

The immediate $3 per hour boost that union negotiators are seeking would result in a 20% wage raise for 75% of the workers who are currently paid $15 per hour. The workers and their unions contend that this raise is essential since the suggested $1 per hour increase would not be sufficient for workers to maintain their standard of living in central Florida, where Disney World is located.

Disney World, on the other hand, called the proposal “extremely solid” and claimed that most employees would have gotten raises ranging from 33% to 46% throughout the course of the contract, with 46% of cast members receiving raises of more than $1 per hour in the first year. The corporation further indicated that if the offer was rejected, salary increases would be delayed and would be retroactive, with each employee receiving a lump sum payment of about $700.

The workers who would have gotten an increase of more than $1 per hour under the offer, according to the unions, work in positions where it is difficult for the corporation to hire and retain employees. The unions feel that a $1 per hour rise is insufficient due to rising rents and other costs in the Orlando area.

Negotiations between Disney management and the Service Trades Council Union, a group of unions that represent the workers, will go on despite the contract offer being rejected. The next round of negotiations has no definite date. Over 40% of the 75,000 workers at Disney World, comprising full- and part-time, hourly and salaried staff, are full-time employees who are represented by unions.

The company’s Parks, Experiences, and Products division, which includes Disney World, reported sales of $7.4 billion and operating income of $1.5 billion for the fiscal year 2022. The operating profits more than doubled, while the revenue increased by 36% over the prior fiscal year. Disney will release its financial results for the last three months of 2022 on Wednesday. Analysts anticipate a 7% gain in revenue but a 27% decline in earnings.

Disney World provided a new labor contract in late April that would have raised wages by 3% in the following years and 2.5% in the first year to meet the complaints of its employees. The unions that represent the workers, however, rejected this offer because they thought the rise was insufficient. The unions proposed a $3 per hour hike, which would have affected roughly

One of the biggest employers in the Central Florida area is frequently cited as Disney. Since the contract offer was turned down, Disney has come under increasing pressure from the unions and employees to deliver more substantial compensation increases. The business is now faced with the challenging task of balancing staff wages with other costs.

The proposed salary increase, according to the unions, wouldn’t be sufficient for workers to keep up with the region’s rising cost of living. The union’s claim that a $3 per hour increase is required to maintain the workers’ quality of living in Orlando while rent prices and other costs are rising. Disney, on the other hand, asserted that its offer was competitive and mentioned that roughly half of the employees would have received a rise of more than $1 with the offer.

The Service Trades Council Union has requested more talks with the business to discuss the salary issues as a result of the circumstance. The next round of negotiations has not yet been scheduled, but both parties are still optimistic that a deal may be struck. The possible work


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