Walt Disney (DIS) does not want theme park guests to think of Disney World (or any other Disney theme park) employees as people. It sort of breaks the magic if you think about how the person in a costume helping you get on the "Jungle Cruise" or "Pirates of the Caribbean" might be worried about paying their rent or mortgage at the end of the month.
It's even worse if Disney World visitors realize that Goofy might have issues putting enough dog food in the bowl, so to speak, or that the Little Mermaid may have to sleep in her car. Those sound like extreme examples, but central Florida, home to Disney World, has experienced massive housing price increases,
The covid pandemic made Florida a very desirable place to live and that caused prices to rise quickly. Add in the overall increases in food, clothing, and other items, and Disney World "cast members," as the company calls them, have increasingly struggled to survive on the wages the company pays.
Now, as Disney and its cast members work to negotiate a new contract, the employees have rejected the company's offer overwhelmingly. Ultimately, that could lead to a labor stoppage, which could force the company to curtail operations in Florida until the matter is solved or shut down until the labor issues get solved.
Image source: Matt Stroshane/Walt Disney World Resort via Getty Images
Disney's Union Rejects the Company's Offer
Disney had offered workers a raise of $1 per hour per year. That's similar to the current contract, which raised wages at Disney World to a minimum of $15 an hour, but that increase did not fully kick in until 2021, with rates increasing by $1 per hour per year until that level was met.
Now, the company has made a similar offer, and "cast members" have overwhelmingly rejected it, Blog Mickey reported.
Disney is proposing raises of $1 per hour per year for most workers, but $1 is not enough to pay for the cost-of-living crisis that workers are facing in Central Florida. Rent and other expenses have skyrocketed, leaving workers in a state of emergency.
About 75% of Service Trades Council Union (STCU) members (13,650) voted "no," declaring that $1 per hour per year raises were not enough. The remaining group, 526 union members, voted "yes" to accept Walt Disney's offer.
"Disney World and the STCU will return to the bargaining table to continue negotiations over wages and other outstanding items. The STCU is pushing for $18/hr, which represents a $3/hr increase over the current minimum wage," the website reported.
STCU represents more than 45,000 Disney World employees. Negotiations on a new deal have been ongoing since August 2022.
Disney Workers' Union Wants More
The STCU argues that the raise being offered simply does not reflect the economic hardships Disney World employees face.
"Disney is proposing raises of $1 a year for most workers, but $1 is not enough to pay for the cost-of-living crisis that workers are facing in Central Florida. Rent and other expenses have skyrocketed, leaving workers in a state of emergency," the union shared in a statement.
Based on rents in the area, a Disney World employee making $15 an hour would likely end up spending more than 50% of their income on rent (about double what's generally considered acceptable).
STCU wants an immediate increase to an $18 per hour minimum wage along with increases to $20 per hour over the life of the contract.
The current contract, which has expired, but has been extended in the short term does not allow Disney workers to strike. That changes when the extension expires.
