Disney appeared to be in financial trouble. A few days ago, the company announced that it was beginning to layoff 4,000 of the 7,000 workers who will eventually lose their jobs due to the economic crisis. However, in the midst of all these cuts, Disney World, the well-known amusement park, surprised the world with the following announcement: it will raise more than 45,000 employees’ wages.
The agreement came after weeks of negotiations. According to AP, Walt Disney World reached an agreement with labor unions Thursday to raise 45,000 employees’ wages by $3 an hour. As a result, these workers will be paid, before the end of the year, $18 per hour instead of the current $15 per hour. This news was welcomed by Matt Hollis, the head of the coalition of unions:
Securing an $18 minimum hourly rate this year, increasing the overall economic value of Disney’s original offer, and ensuring full back pay for every worker are the priorities union members were determined to fight for. Today, we won that fight.
The agreement, Walt Disney World Resort President Jeff Vahle said in a statement, will include benefits for the "leaders in the industry" in terms of the health insurance for its employees, as well as higher education tuition reimbursements: "Our Cast Members are central to Walt Disney World's enduring magic, which is why we are pleased to have reached this tentative agreement."
NEW: Jeff Vahle, President of Walt Disney World Resort, just issued a statement on the tentative agreement:
“Our Cast Members are central to Walt Disney World’s enduring magic, which is why we are pleased to have reached this tentative agreement." pic.twitter.com/AVJumW9OtT
— Scott Gustin (@ScottGustin) March 23, 2023
Massive layoffs at Disney while others are getting a raise
The raise comes after Disney announced it would begin a round of layoffs. One of the most affected areas will be the Parks, Experiences and Products division. However, Disney Parks president Josh D' Amaro said in an internal e-mail obtained by Spectrum News that the major theme parks will not be affected although he did not rule out the possibility of job cuts:
While our teams have made great progress in contributing to cost savings, these measures affect every segment and organization — including ours — and are vital as we implement more cost-effective, coordinated, and streamlined operations.