Disneyland Resort Closes Deal With Largest Labor Unions For One of the Highest Minimum Wages in the Country

Resort to Pay $15 Per Hour by January 2019, Three Years Before California's Scheduled Increase

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Jul 27, 2018, 01:42 ET

ANAHEIM, Calif., July 26, 2018 /PRNewswire/ -- The Disneyland Resort announced today that it has reached agreement with its largest labor unions for a minimum wage rate increase of 40 percent within two years of the agreement. This will put cast members represented by Master Services Council at $15 per hour by 2019, which will be one of the highest minimum wages in the country. This agreement, benefitting more than 9,700 cast members, is one of the most aggressive entry-level offers in the country and demonstrates Disney's commitment to its valued cast members.

Disneyland Resort increases wages in Master Services contract, significantly outpacing California

"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. Our unprecedented offer shows our commitment and care for our cast members and is the largest increase in our history," said Josh D'Amaro, president, Disneyland Resort. "Our cast members are at the heart of making our guests' dreams come true and this meaningful pay increase reflects the valuable roles they play at the resort."

This increase will make a real, tangible difference to impacted cast members. For example, an individual full-time cast member who currently earns $11 an hour would earn an additional $8,000 per year. While companies alone cannot solve the complex issues that lead to the high cost of living, Disneyland is committed to being part of the solution and this industry-leading offer reflects a long-term commitment and investment in the team.

"It is truly a historic day in Orange County. Our largest employer, Disney, and almost one-third of Disney's workers, through a coalition of unions, found common ground today in a new wage agreement. Three years ahead of California's new law, Disney will provide a $15 starting hourly wage. OCBC commends Disney for its corporate leadership, and continuing investment in its employees and the community," said Lucy Dunn, CEO, Orange County Business Council.

Minimum rates for hourly cast members represented by Master Services will increase by 20 percent immediately from the current minimum rate of $11 to a new minimum rate of $13.25. Once minimum rates increase to $15 per hour on January 1, 2019, wages will continue to $15.45 in mid-June 2020. The agreement also includes at least 3 percent increases to wage rates for each year of the contract term for those near or above the minimum rates.

Prioritization of Growth Opportunities for Hourly Cast Members

Disney is committed to providing cast members with a comprehensive, holistic employee experience through multiple touch points. Earlier this year, the company announced an unprecedented education investment program for both full-time and part-time hourly cast members, with an initial investment of $50 million for the first year and an ongoing annual investment of up to $25 million. This program, which officially launches this fall, will provide tuition assistance and other support for Disney cast members interested in obtaining a college degree or gaining valuable skills through vocational training — opening up additional opportunities both within and outside of Disney.

In addition, the company provides multiple training and career development opportunities. Over the last five years, 89 percent of entry-level leadership roles in parks operations have been filled by hourly cast members. The fact that so many cast members want to make their career at Disney parks speaks to the strength of the overall employment experience, with 86 percent saying they are proud of their roles and the work they do, and 90 percent who believe Disney is a leader in the marketplace.

Disneyland's Investment has Created More than 10,000 Jobs in Last Decade, Driving Tourism Growth and Generating Significant Economic Impact

Over the last decade, Disneyland Resort employment numbers have increased by 50 percent, adding 10,000 new jobs, for a total of 30,000 cast members, making the resort the largest employer in Orange County. With the opening of Star Wars: Galaxy's Edge in 2019, and other expansion projects, thousands of additional roles will be added. In addition to operations jobs, Disney's significant investment in Anaheim has created nearly 2,000 construction jobs since 2016.

Master Services Council

Representing approximately 9,700 cast members at Disneyland Park, Disney California Adventure Park and Downtown Disney, the Master Services Council includes those working in attractions, store operations, custodial, main entrance, costuming, resort transportation and parking, onsite distribution center and select cast in team centers and bakery/confection.

Master Services Council is composed of:

Teamsters Automotive, Industrial, Theme Park, Service Sector, and Allied Workers, Local 495
United Food and Commercial Workers, Local 324 (UFCW)
Service Employees International Union – United Service Workers West (SEIU-USWW)
Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union, Local 83

The majority of hourly cast members at Disneyland Resort are represented by unions, so wages for other represented cast members will be negotiated as part of the normal bargaining process.

About the Disneyland Resort

Located on approximately 500 acres in Anaheim, Calif., the Disneyland Resort features two spectacular theme parks – Disneyland (the original Disney theme park) and Disney California Adventure park – plus the Downtown Disney District comprised of unique dining, entertainment and shopping experiences. The Resort's three hotels are the 948-room Disney's Grand Californian Hotel & Spa, the 973-room Disneyland Hotel and the 481-room Disney's Paradise Pier Hotel. With 30,000 cast members, the Disneyland Resort is Orange County's largest employer and generates $5.7 billion for the Southern California economy. The Resort has welcomed more than 800 million guests since opening on July 17, 1955.

SOURCE Disneyland Resort