Disney Union Rejects Contract Offer

wbk

Mouseketeer
Joined
Aug 19, 1999
Walt Disney World union members overwhelmingly rejected a new contract Wednesday that would given them a raise of at least 50 cents an hour, as some argued they deserved a bigger salary increase.

About 93 percent of dues-paying members who voted turned down the two-year contract. The nearly 10,000 votes cast was the highest turnout in the history of labor votes for the Service Trades Council Union, the coalition of six unions that represents about 36,000 Disney employees, officials said.

Union members cheered and chanted, “Union!” “Fight!” “If we don’t get it, shut it down!” after union leaders announced the election results at Disney’s Contemporary Resort.

The next move is for union leaders to regroup in February.

“We’re going to go to the table next year and demand more,” said Jeremy Haicken, president of Unite Here Local 737, to his supporters.

“We are disappointed that the union rejected our fair and reasonable offer of a 6 to 10 percent wage increase over the next two years and we will continue to work with the union on negotiations,” a Disney spokeswoman said in a statement.

Wednesday’s failed deal would have given full-time and part-time Disney employees a 3 percent or a 50-cent raise — whichever was higher — retroactive to Sept. 24 and again in September 2018. Tipped employees were not eligible for the salary increase under the proposal.

Disney also proposed a one-time $200 bonus this year for full-time employees and those who get tips.

“We deserve more than 50 cents,” said Krystle Karnofsky, who is paid $10 hour to work at Animal Kingdom’s Flight of Passage ride and struggles with a company she loves but that can’t support her financially. “We’re not going to settle.”

Disney has offered signing bonuses this year as incentives for new hires for jobs such as housekeepers and bus drivers.
 
This was a known result. The vote was a formality. We will see how it plays out this year.
 


I don’t consider myself a “pro-union” person; however, it CAN be to the shareholders’ benefit to pay their employees a little better than average. Happy employees = better guest service = people willing to give you their money. I am willing to pay more to get great customer service. And though WDW’s guest service is great, I do think it has slipped a bit from where it once was. I think about Chick-fil-a, granted they are privately owned, but they are willing to pay more than market wages to their employees and it shows. AND they are able to hire selectively because many young people want to work there.
 
I don’t consider myself a “pro-union” person; however, it CAN be to the shareholders’ benefit to pay their employees a little better than average. Happy employees = better guest service = people willing to give you their money. I am willing to pay more to get great customer service. And though WDW’s guest service is great, I do think it has slipped a bit from where it once was. I think about Chick-fil-a, granted they are privately owned, but they are willing to pay more than market wages to their employees and it shows. AND they are able to hire selectively because many young people want to work there.

They are also able to hire selectively because they only need a few people relatively speaking to Disney. Disney doesn't really have that advantage. Not in the... less demanding... positions anyway. The sheer quantity of employees destroys any real selectivity. If you are willing to work food service, don't have significant criminal history, and are reliably on time for your shift, Disney is going to be pretty happy to have you. Such is the nature of the beast.

And none of that addresses the other Disney issues. Such as needing to send employees to costuming and distant parking and paying for neither. Or the ridiculous shift aressignments driven by things like late nights and early mornings. You are better off working at Chic Fil A and I know several snowbirds that make that choice who once worked at the Parks. I also know several retired people that basically work at Disney because it's Disney and consider the below average wages just a cost of working where they love to be. Disney is not going to pay 1 dime more than they have to. They never have and they never will. Not when labor costs are such a huge factor in the magnitude of Park profitability.
 
I don’t consider myself a “pro-union” person; however, it CAN be to the shareholders’ benefit to pay their employees a little better than average. Happy employees = better guest service = people willing to give you their money. I am willing to pay more to get great customer service. And though WDW’s guest service is great, I do think it has slipped a bit from where it once was. I think about Chick-fil-a, granted they are privately owned, but they are willing to pay more than market wages to their employees and it shows. AND they are able to hire selectively because many young people want to work there.

Unions and organized laborers are responsible for a lot of good things. Unfortunately there's a lot of corruption where there's power, and it doesn't take much it seems, just look at any organization that grants a tiny bit of power (looking at you Homeowners Associations). But at the end of the day, they are there to look out for the employees interest and I don't think that's a bad thing. I think in our current culture of the shareholder being the most important part of a company, not the customer, not the product, certainly NOT the employee, people are getting lost. They are chasing the quarterly earnings and now they have their tax cut. Comcast just announced they'll give their front line employees (including theme park employees) a raise. Who knows how much the Mouse will get but they better not with one hand say they have nothing and the other scoop it up and buyback stock or boost dividends.
 


Unions and organized laborers are responsible for a lot of good things. Unfortunately there's a lot of corruption where there's power, and it doesn't take much it seems, just look at any organization that grants a tiny bit of power (looking at you Homeowners Associations). But at the end of the day, they are there to look out for the employees interest and I don't think that's a bad thing. I think in our current culture of the shareholder being the most important part of a company, not the customer, not the product, certainly NOT the employee, people are getting lost. They are chasing the quarterly earnings and now they have their tax cut. Comcast just announced they'll give their front line employees (including theme park employees) a raise. Who knows how much the Mouse will get but they better not with one hand say they have nothing and the other scoop it up and buyback stock or boost dividends.

What % was the comcast raise for their theme park employees just as a reference?
 
Oh sorry, I confused that with the WF one. The story is here: http://money.cnn.com/2017/12/20/news/companies/wells-fargo-bonuses-tax-cuts/index.html

It doesn't directly say who gets the $1000 bonus, but it does say "front line employees" in the article. Of course that's subject to a tax and they won't be getting that full amount.

Thanks. I think I would like the 10% raise much more than the $1000 bonus. If the Disney employee is making $10.00 minimum, that projects to 20,800 a year and 10% of that would be $2080. Granted the contract they voted down called for getting to 10% over the course of the two years but as someone that has gotten lump sum raises (bonuses) before, an actual % adds up so much more over time. Lump sum bonuses end up being spent in a pretty quick manner. Stimulates the economy briefly, but not over time.
 
Thanks. I think I would like the 10% raise much more than the $1000 bonus. If the Disney employee is making $10.00 minimum, that projects to 20,800 a year and 10% of that would be $2080. Granted the contract they voted down called for getting to 10% over the course of the two years but as someone that has gotten lump sum raises (bonuses) before, an actual % adds up so much more over time. Lump sum bonuses end up being spent in a pretty quick manner. Stimulates the economy briefly, but not over time.

fully agree, plus the raise is there forever (usually) so even beyond the 1 year figure you totaled
 
fully agree, plus the raise is there forever (usually) so even beyond the 1 year figure you totaled

Yeah, didn't word it real well but that is what I meant by the first "over time". It affects so much when it is a raise- Social Security wages, pension if you get one, and the pocketbook. I got started when I was in my early 20's putting half of my raise % into my 401K. If we got three, I would keep 1.5% and put 1.5% more into 401K. Needless to say it has grown nicely and by the time I hit 35 I was at the point I no longer could raise the % due to already contributing at the limit. Didn't even notice it being taken out. Back then I got good raises. Now every raise is between 1% and 2%. Retirement is looking better each day!
 
Thanks. I think I would like the 10% raise much more than the $1000 bonus. If the Disney employee is making $10.00 minimum, that projects to 20,800 a year and 10% of that would be $2080. Granted the contract they voted down called for getting to 10% over the course of the two years but as someone that has gotten lump sum raises (bonuses) before, an actual % adds up so much more over time. Lump sum bonuses end up being spent in a pretty quick manner. Stimulates the economy briefly, but not over time.

Yes, i would also always prefer a pay raise than a flat bonus due to the taxation. Give me more money every pay check, and it's more likely I'll be spending that money at the store or local businesses. As to your later comment I always added 1% to my 401k until I hit the match maximum.
 
Walt Disney World union members overwhelmingly rejected a new contract Wednesday that would given them a raise of at least 50 cents an hour, as some argued they deserved a bigger salary increase.

About 93 percent of dues-paying members who voted turned down the two-year contract. The nearly 10,000 votes cast was the highest turnout in the history of labor votes for the Service Trades Council Union, the coalition of six unions that represents about 36,000 Disney employees, officials said.

Union members cheered and chanted, “Union!” “Fight!” “If we don’t get it, shut it down!” after union leaders announced the election results at Disney’s Contemporary Resort.

The next move is for union leaders to regroup in February.

“We’re going to go to the table next year and demand more,” said Jeremy Haicken, president of Unite Here Local 737, to his supporters.

“We are disappointed that the union rejected our fair and reasonable offer of a 6 to 10 percent wage increase over the next two years and we will continue to work with the union on negotiations,” a Disney spokeswoman said in a statement.

Wednesday’s failed deal would have given full-time and part-time Disney employees a 3 percent or a 50-cent raise — whichever was higher — retroactive to Sept. 24 and again in September 2018. Tipped employees were not eligible for the salary increase under the proposal.

Disney also proposed a one-time $200 bonus this year for full-time employees and those who get tips.

“We deserve more than 50 cents,” said Krystle Karnofsky, who is paid $10 hour to work at Animal Kingdom’s Flight of Passage ride and struggles with a company she loves but that can’t support her financially. “We’re not going to settle.”

Disney has offered signing bonuses this year as incentives for new hires for jobs such as housekeepers and bus drivers.
$10 per hour. No wonder service has slipped.
 
Only thing I am concerned about....

When is the Strike?
I don't actually think you have to worry about this. That union cannot afford to pay much in strikers' wages and too many of the Disney employees affected need to earn wages. Plus there is going to be a portion of those workers that aren't going to support a strike since they are seasonal types or just work at Disney because it is Disney. A strike just wouldn't be cohesive. Voting against the contract is passive disapproval with limited downside. Striking is active disapproval with large possible downsides. Never say never, but I doubt the Union has the strength to strike in this case.
 
Wondering what percent of the job positions covered by this contract are actually filled by union members. Florida is a "right to work" state so CM's don't have to belong to a union to work there.
 
I don't actually think you have to worry about this. That union cannot afford to pay much in strikers' wages and too many of the Disney employees affected need to earn wages. Plus there is going to be a portion of those workers that aren't going to support a strike since they are seasonal types or just work at Disney because it is Disney. A strike just wouldn't be cohesive. Voting against the contract is passive disapproval with limited downside. Striking is active disapproval with large possible downsides. Never say never, but I doubt the Union has the strength to strike in this case.

Unions do have other methods to cause issues, without striking though. Sick-outs. Over reporting of maintenance issues, or shutting down rides over minor issues. "By-the-book" (not sure how well this would work at Disney, but it'll slow an airline way down). In a customer service role, just providing worse customer service.

I've been through many such actions at airlines. Some of them are very hard to get an injection against too, like by the book and over reporting of maintenance issues, because it is pretty hard for a company to argue that they are doing something wrong.

For example, a mechanic is supposed to have the printed procedures any time he does anything to the aircraft. Minor stuff is done without the written procedures all the time. But now, a reading light is out, so the mechanic leaves the aircraft, drives across the ramp following the speed limit of 10 mph, to the office, looks up the procedure and prints it as slow as possible, goes and picks up a new bulb so he doesn't use the spare bulb on the aircraft since that is technically not by the book, then goes back to the aircraft to replace the bulb. Thus a 2 minute job, is now a 60 minute delay. Meanwhile, there are probably 5 other aircraft waiting for him. If you question him, he can report you to the FAA for trying to get him to violate the law and company procedures.

Wondering what percent of the job positions covered by this contract are actually filled by union members. Florida is a "right to work" state so CM's don't have to belong to a union to work there.

Looks like at least 1/3 are actually members, since it said 10,000 voted and they represent 30,000 employees.
 
The labor market in Orlando is at a break-point right now, especially when it comes to these "minimum wage" positions that theme parks are paying. You can't support a family on $10/hour, no matter HOW much you love Disney and want to work there - in fact, you'd have a hard time supporting a general lifestyle on that without a partner or a roommate. Disney exploits the College Program and International Program to make up for staffing deficits ... but with everything they have on the horizon, there just aren't many people left in Central Florida that are willing to work for Disney at current wages - any form of exodus of existing employees would be potentially disastrous.
 

GET A DISNEY VACATION QUOTE

Dreams Unlimited Travel is committed to providing you with the very best vacation planning experience possible. Our Vacation Planners are experts and will share their honest advice to help you have a magical vacation.

Let us help you with your next Disney Vacation!





Latest posts

Top