Disney Headlines for April 2, 2023
This past week, Disney finally came to terms with some of its unions just as it announced layoffs. Also, fans gained our first look at what Storyliving entails.
Let’s bring you up to speed on the latest Disney Headlines.
The Good News about Disney Workers
MickeyBlog raves about Disney cast members, who are among the kindest, most considerate people on the planet.
In fact, our staff consists of several current/former Disney workers. We revere their work ethic and thoughtfulness that much.
Alas, the past three years have posed unprecedented challenges for The Walt Disney Company and its workers alike.
Pandemic health policies, emergency layoffs, rising per capita cost-of-living expenses, and a sustained staffing crisis have led all parties to a frustrating crossroads.
In 2018, Disney promised cast members a salary increase that would have eventually taken them to a minimum starting hourly wage of $15.
This salary increase would have occurred by 2021. Unfortunately, we all know that inflation, especially in parts of the country like Central Florida, has negated any possible financial gains.
Labor union representatives entered the negotiations with Walt Disney World in hopes of gaining an immediate salary increase of $3 per hour.
They stated these goals in 2022, but Disney took a hard line. Management preferred a $1 annual increase yearly for the next five years.
Union members soundly rejected this proposal, with 96% voting against it.
At the time, the two parties reached an impasse, and Disney walked away from the bargaining table. Thankfully, cooler heads prevailed.
Disney started negotiating again in mid-February, with the two parties coming to an agreement just as last week’s Disney Headlines went live.
The gist is that Disney agreed to terms with its union leaders on the most pressing matters.
Specifically, cast members have gained an immediate salary floor of $17 per hour, and it will increase to $18 an hour by the end of 2023.
Also, Disney will provide backpay at a rate of $16 per hour from October 2022 until now.
Jeff Vahle and Bob Iger Comment
Walt Disney World Resort President Jeff Vahle praised the new agreement. His official statement included this quote:
“Disney is proud to offer an industry-leading employment package that includes comprehensive benefits and affordable medical coverage, in addition to 100 percent paid tuition for higher education for hourly employees through the Disney Aspire program.”
Disney has assumed the PR position that this is a win for all involved. Cast members held out for a quicker raise and got it.
Meanwhile, Disney gains a level of payroll certainty. This aspect explains the timing.
As you know, Disney is undergoing layoffs. They may have started by the time you read this.
Disney CEO Bob Iger acknowledged what I referenced last week. Mass layoffs often occur on the last day of the month or quarter.
Disney will apparently let go of many workers this week, followed by a substantially larger number toward the end of April.
Apparently, we’ll witness a third round of layoffs by the summer, which probably means May but could be as late as June.
What does this have to do with the union negotiations? Before Disney hammered out an agreement, it lacked confidence in what it would pay workers.
Now, we aren’t discussing a large variance by any stretch, but any dollar amount matters when performing layoffs.
If Disney estimated incorrectly on Walt Disney World payroll, it would need to perform additional layoffs later.
Nobody wants that because the executives aren’t monsters. So, negotiating a deal now is best for business.
With regards to the layoff, Disney will apparently consolidate its content creators at its cable channels and Hulu to account for a more digital future.
The company would have needed to do this soon anyway. So, Disney is killing two birds with one stone.
Let’s Talk about Storyliving by Disney
Disney finally provided more context regarding its upcoming housing development, Cotino.
We recently discussed the first promotional video for Storyliving by Disney. Here’s a reminder:
Now, Disney officials have revealed some of the amenities guests should expect in this community.
Obviously, the Disney lifestyle matters greatly to the homeowners choosing to buy into Cotino.
Residents who join the neighborhood’s Artisan Club will receive amenities we can only describe as Incredible.
A guest space styled after the mid-century Parr House from The Incredibles franchise will welcome members. It’ll remind people that they have a little Disney in their daily lives.
In case you’ve forgotten, here’s what the house looked like in The Incredibles 2:
https://www.youtube.com/watch?v=hAfGO2neGzM
Disney is promising “a super fun place for special events, celebrations, and limited overnight accommodations.”
The Parr House will feature “a towering indoor/outdoor rockwork fireplace” and “an elevated patio (with) stunning views of the grand oasis and the surrounding mountains.”
Notably, the visitor space at the Parr House will include an art studio and five bedrooms, a kitchen, a dining room, and a boardroom.
I would expect the dining room to host public gatherings with meals cooked by Disney-trained chefs, but that’s merely my speculation.
As a reminder, Disney is building this neighborhood in Rancho Mirage, California, roughly 10 miles away from Palm Springs and the Joshua Tree.
Walt Disney and his wife loved this area, which makes it a fitting choice for the first development.
People involved with construction have bragged that Cotino homeowners will “experience magic right outside their front door and down the block.” And that’s what all Disney fans want, right?
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