Disney has reached to an agreement with the unions that would increase the minimum wage for Walt Disney World Resort workers to $15 per hour by 2021. This has signaled an end to contract negotiations that has been going on for nearly an year.
The agreement covers thousands of park and resort employees. It would increase the starting wages by 50%. The workers would also get $1000 as bonus as promised to them earlier this year.
According to a union official, there were huge negotiation rounds which carried into the early morning this week before finally a deal was reached late Friday night. Though it is expected to be passed easily, it still would have to be voted on by union members on the September 5.
This is the largest proposal ever offered by Walt Disney World Resort with significant pay raises, Disney said.
The VP of labor relations for Walt Disney Parks and Resorts, Mr. Robbin Almand said that the company was very excited to offer one of the highest entry-level service wages in the country.
The deal also promises to pay 50 cents an hour or 3%, whichever is greater, for all hours worked since September last year.
The company had earlier threatened that it would not pay the $1,000 bonuses amid the contentious negotiations with the STCU (Service Trades Council Union) which represents six unions covering almost 38,000 employees at the park and resort.
Clinton also said that the unions did not make any major concessions during negotiations and the agreement reached this week was entirely a result of workers putting up a united front.
He appreciated the worker’s efforts by saying that to stand up to your boss that’s that big and that powerful is really very remarkable and inspiring.
Employees covered in the deal include custodial, hotel, food service and park workers.
As per the terms of the agreement, the minimum wage will climb incrementally over the next three years before hitting $15 per hour in October 2021.