The Service Trades Council Union (STCU), a coalition of six unions representing 42,000 Disney World workers, has recommended its members reject the company's latest offer of a $1 raise. The union, which has been pushing for an immediate pay raise of $18 per hour for workers, says that Disney's proposal of $16 per hour in 2023 "does not keep up with the rising cost of living."
Negotiations between the union and Disney World have been ongoing for months, following the expiration of the previous Disney-union contract in October. The previous contract led to a minimum wage of $15 per hour by 2021. However, the union is now seeking a raise for its members to address concerns about the rising cost of living.
Disney World proposed to gradually raise the starting wage to $20 per hour over the next five years for some workers and an immediate bump for others. In a statement, a Disney World spokesperson said, "We have presented a strong and meaningful offer that far outpaces Florida minimum wage by at least $5 an hour and immediately takes starting wages for certain roles including bus drivers, housekeepers and culinary up to a minimum of $20 an hour while providing a path to $20 for all other full-time, non-tipped STCU roles during the contract term. Our proposal also provides paid child-bonding time for eligible Cast Members."
However, the STCU maintains that the company's proposal does not meet the needs of its members. In its update on Monday, the union said, "Every worker needs an initial raise larger than $1 to address these concerns." The union is now scheduling a vote for all members in the coming weeks to determine whether to accept or reject the company's offer.
In 2022, the Walt Disney Company's parks, experiences, and products segment generated a revenue of nearly 29 billion U.S. dollars, a significant increase of 12 billion from the previous year. This segment continues to be a major revenue driver for the company, and it contribute a significant portion of the total revenue of the company.
The ongoing negotiations and potential rejection of the contract offer highlights the ongoing struggle for fair wages and benefits for workers in the service industry, particularly during the ongoing economic challenges caused by the COVID-19 pandemic. The STCU's recommendation to reject Disney's offer puts pressure on the company to come forward with a proposal that better meets the needs of its employees.
