Disneyland Could Have Another Labor Problem
In July of 2018, Disneyland officials believed they had solved a longstanding problem.
Teamsters Local 495, aka Allied Workers Local, and other Disney unions agreed to a pay increase.
Image: Disney
Alas, events conspired to render this agreement less satisfactory over time. So let’s quickly discuss how Disneyland could have another labor problem.
The 2018 Deal
Roughly 10,000 Disneyland workers agreed to a deal that would protect them into 2020.
(Christian Thompson/Disneyland Resort)
This negotiation required The Walt Disney Company to pay its employees $15 an hour by 2019.
That’s actually a solid increase from previous rates, some of which were only $12 an hour.
Photo Credit: Disneyland
Disney also sped up the timeline on the cast member raises. It had previously agreed to pay $15 an hour in 2020.
As part of the agreement, Disney also offered a three percent cost of living increase to all workers currently earning more than $15 an hour at the time.
The iconic entrance of Disneyland Park
At the time, Josh D’Amaro, then the President of Disneyland Resort, stated:
“Disneyland Resort has long taken pride in providing an exceptional employee experience, and this agreement sets a new bar with minimum wages that are among the highest in the country.”
Photo: Orlando Sentinel
Walt Disney World similarly agreed to pay increases for its workers around the same timeframe.
So, Disney had set the stage to avoid labor turmoil for a while. But then…
Photo: Jeff Gritchen
The Impact of the Pandemic
Admittedly, plenty has happened since this agreement. To wit, here’s an article from June of 2020 regarding Teamsters Local 495 and others.
When Coronavirus forced the closure of all Disney theme parks, Disney laid off more than 32,000 cast members.
Photo: Jeff Gritchen, Orange County Register/SCNG
As the parks prepared to reopen, executives negotiated fair terms of agreement with cast member unions.
At Walt Disney World, these discussions proved more fruitful than the ones at Disneyland.
After all, Disneyland didn’t reopen on July 17th, 2020, as previously announced. Instead, Disney had to wait until April 30th, 2021.
During these additional nine months, many cast members got other jobs. This turn of events wasn’t unusual during the pandemic.
In fact, journalists even gave the phenomenon a name, the Great Resignation.
For the first time in their lives, many workers had time to reconsider their careers. So, many decided to try something new.
Image Credit: Disney
To entice employees to stay, many companies increased their salaries. For example, in Anaheim, California, a significant portion of businesses pay $17 an hour or more.
Some people in smaller areas may think this sounds like a lot. However, the cost of living in Anaheim is 52.2 percent higher than the average city.
Citizens need higher wages to afford to live in Anaheim, and more companies are willingly paying that amount.
This sudden, disruptive aspect of the pandemic has placed Disney in a tricky position.
The Latest Negotiations
The Latest NegotiationsToday, a member of Teamsters Local 495 posted a message on social media that a Twitter user has published. Here it is:
Negotiations with Disney over pay for Attractions Cast Members (Teamsters) have faltered.
Disney is unwilling to provide an increase in wages over 3% ($0.46)
We are currently paid $15.50 with most other businesses offering a starting wage of $17 in the same area. pic.twitter.com/wpuKN8hPt3
— Frederick Chambers (@HelmsmanFreddy) October 28, 2021
The gist involves that previous pay raise of $15, which has since gone up to $15.50.
That number, while substantially better than the one in 2018, has turned problematic.
Disney once again pays its marvelous cast members less than the market rate in the greater Anaheim area.
The members of this union and thousands of other affected Disneyland workers would like another raise.
Thus far, Disney hasn’t proven willing to discuss the issue. Technically, they still have an agreement in place and remain cash-poor due to the pandemic.
However, members of this union will speak at a town hall on November 17th, the timing of which likely isn’t coincidental.
Destination D23 begins at Walt Disney World on November 19th. If Disney hasn’t settled by then, the media could publish headlines about poor cast member pay.
Does Disney care enough to go back to the table? That remains to be seen.
Still, I think all of us would like to see cast members get paid the going rate in Anaheim. They’re the best, and they deserve every dollar they earn.
