Contract negotiations between Disneyland administration and unions representing ~14,000 Solid Members have reached a boiling level, because the unions have voted overwhelming to authorize a strike. This shares the most recent information on the standoff and our commentary about why Disney ought to supply increased wages and higher remedy of its staff–and why it is best to (selfishly, even!) need that as a visitor.
Let’s begin with the most recent information. On July 19, 2024, 4 unions representing greater than 14,000 employees at Disneyland Resort voted to authorize a strike by an awesome majority, citing alleged unfair labor practices throughout contract negotiations. This covers roughly half of the unionized employees at Disneyland, Disney California Journey, Downtown Disney, and the Disney-owned motels.
The authorization doesn’t imply a strike will occur instantly; the events may nonetheless attain a deal that averts a walkout. If a strike does happen, it could be the primary at Disneyland in 40 years. It might even be staggered, because the contract for Solid Members at Disneyland (park) expired June 16. The contract for Solid Members at Disney California Journey and Downtown Disney expires September 30, 2024. That means {that a} strike may hit Disneyland earlier than DCA or Downtown Disney.
A submit on Instagram by Disney Staff Rising reiterates that this vote doesn’t imply the Solid Members are on strike. This vote merely permits the unions to “take motion if Disney continues to silence solid members and forestall us from getting the contract we deserve.”
Disney Staff Rising additionally signifies that “a strike is at all times a final resort, and we’ve got dedicated to return to the bargaining desk Monday and Tuesday ready to cut price in good religion.”
The final time Disneyland was hit by a strike was September 1984, when practically 2,000 Solid Members walked off the job for 22 days.
Within the occasion of a strike, Disney maintains that the parks and motels would stay open and able to welcome friends. This could doubtless be completed by reallocating Solid Members from DCA to Disneyland, and likewise bringing out backstage assist and even having managers work frontline roles.
There would additionally, undoubtedly, be staffing shortages. Diminished hours and different scaled-back operations may ensue relying upon the period of the strike. Assume again to the phased reopening in mid-2021–one thing like that.
The unions entered into contract negotiations with Disneyland Resort again on April 24. Disney has proposed a 5-year contract with will increase in wages and advantages. The unions needs a 3-year deal, and bigger wage will increase than these being supplied by the corporate. The union can also be looking for modifications to the attendance coverage, seniority bonuses for long-tenured Solid Members, and extra. Our assumption is that hourly pay is the largest sticking level.
On June 10, Disney employees introduced that that they had filed unfair labor apply costs in opposition to the corporate. The fees, regarding greater than 675 employees, at the moment are being investigated by the Nationwide Labor Relations Board, an unbiased federal company that enforces labor legislation.
On July 17, Disneyland’s 69th Anniversary, roughly 300 Solid Members gathered close to the doorway of Disneyland Resort on Harbor Boulevard and held a rally advocating for a good contract. Solely two days later, the strike authorization vote was made, and handed overwhelmingly.
At this level, we expect the strike authorization is greatest seen as a negotiating tactic slightly than a probable consequence. By the union’s personal admission, the specter of a strike is a more practical bargaining chip than an precise strike. Nonetheless, when you’re planning a visit for August or September 2024, we’d suggest following this story intently. For those who haven’t booked a resort or the rest but, we’d extremely suggest locking in one thing with refundable charges.
We’ll preserve you posted with developments concerning the Disneyland vs. Solid Member unions dispute, and can replace this text accordingly with extra information. For now, right here’s our perspective on the standoff…
Our Commentary
The connection between Disney and Solid Members has been a subject of debate for some time, and likewise one which has lately popped up within the feedback part right here a couple of occasions. Suffice to say, I’ve a number of ideas concerning the union negotiations with Disneyland. Truthfully, most of those are nothing new–we handled precisely this identical subject final 12 months at Walt Disney World.
I’ll begin with my private core thesis on this topic, which is that Solid Member compensation needs to be aggressive and, if something, above market. Disneyland needs to be attempting to fill roles with prime expertise in Southern California. Growing wages means Disney can appeal to and retain pleasant and useful Solid Members who will in flip enhance the standard of the visitor expertise–in different phrases, making your trip magical.
Over the previous couple of years, we’ve heard an growing variety of reader complaints about Solid Members not being as pleasant or useful as they was once. Three elements of this are Disney demonstrating it didn’t actually care about Solid Members throughout the closure and within the early phases of the phased reopening, pandemic-era rule enforcement taking an incredible toll, and an increase in entitlement amongst friends that the corporate created and fostered. Few issues are extra harmful to morale than the mantra: “the client is at all times proper.” It’s demonstrably false and empowers the worst sorts of folks to take advantage of issues. It’s an entire rubbish saying.
There’s additionally a fourth large variable underlying all of this, and that’s competitiveness. Disneyland is much less aggressive of an employer if it treats Solid Members poorly. As might be apparent, it’s not merely about remedy.
The on-the-ground actuality is that the Southern California labor market has gotten tighter and Disneyland has not made a lot of an effort to compete in it. Yeah, there are Solid Members who’re captivated with their jobs and proud to hold on Walt’s legacy. Some Solid Members are prepared to simply accept decrease wages than different employers with a view to work for Disney.
However for many, cash talks. Employment is solely transactional, and whereas corporations can skew BS about being a household, legacy, and so forth, nothing exhibits you’re valued in that “relationship” like commensurate compensation. The converse can also be true: nothing says that you simply’re not valued like being paid under market wages.
We’ve been saying for some time that we don’t view Disneyland because the gold customary for customer support. This isn’t a dig at Solid Members–they’re solely nearly as good as they’re empowered to be, and the calls for of friends and administration take a toll even on the perfect Solid Members.
In our view, the quick meals chain In-N-Out Burger is the true gold customary. For the sake of analysis (yeah, that’s it), we lately made a go to to the native outpost of this venerable institution, which had an indication within the window promoting $23 per hour beginning pay. Once more, that’s the minimal–and it’s not a bait and change sort of deal. (For these unfamiliar with In-N-Out, the chain famously pays above market wages, together with six-figure salaries to managers.)
And what? It exhibits! In-Out-Burger provides pleasant service, is without doubt one of the constantly cleanest eating places, and is effectively operated. It’s additionally secure, I suppose, so that you would possibly say that In-N-Out Burger has its personal model of the 4 Keys! Equally notable, In-N-Out Burger is fairly priced by modern quick meals requirements. Even when you don’t suppose In-N-Out Burger lives as much as the hype (our condolences that you’ve poor style), they’re enviable as a enterprise.
The counterpoint to paying increased wages that we at all times hear is in relation to visitor pricing. Some Disney followers oppose wage will increase below the belief that increased wages equal increased costs for Annual Passes, park tickets, meals & beverage, merchandise, motels, and every thing else. In spite of everything, if Disney’s prices improve, they’re going to cross that alongside to customers, proper?
I don’t learn about that. Whereas it’s definitely doable that Disney would attempt to cross on a few of these prices to customers (almost definitely on the meals & beverage aspect), it’s faulty to imagine that Disney costs are predicated upon its prices. Disneyland just isn’t a grocery retailer or a quick meals restaurant–its enterprise mannequin is completely totally different, particularly because it provides a largely distinctive product with out direct competitors.
Disneyland costs what the market will bear, growing costs not on the fee of inflation or as a result of its enter prices are growing at a commensurate degree, however as a result of they’ll.
Disneyland is an especially savvy and complex enterprise–they maximize earnings to the best diploma economically possible. Disney just isn’t “holding again” and costs will actually skyrocket if Solid Member wages go up. If Disney may additional skyrocket costs, that might occur regardless of Solid Member wages.
The previous few years of pent-up demand ought to’ve made that abundantly clear. Disneyland raised costs dramatically throughout the post-reopening interval even whereas slicing its personal prices by decreasing leisure and making different cuts. That had nothing to do with enter prices. (Or is somebody going to say that Disney went from free FastPass to paid Lightning Lanes as a result of the very same factor in some way prices the corporate extra to function?)
Conversely, the final six months or so have demonstrated the alternative of that–and what occurs when the market will not bear these increased costs. Disneyland has began providing a ton of reductions: aggressive provides on youngsters tickets, increasing the traditional California resident deal to most of the people this summer season, and an unprecedented low cost for Anaheim residents. None of that occurred out of company generosity–it was as a result of attendance is beginning to droop.
Disneyland has been in a position to improve margins because of demand and shopper tolerance for increased costs; those self same margins can go the opposite route, too. There’s nothing to say that each quarter has to enhance upon the prior 12 months. Maybe the studios, streaming, ESPN, and many others. may lastly begin pulling their very own weight as a substitute of Parks & Resorts being a money cow that’s milked dry.
A bit tangential to this submit, however the Parks & Resorts division is quick approaching a ‘one thing’s gotta give’ inflection level. The corporate and Wall Avenue buyers have gotten used to these fats margins from the “revenge journey” period and are attempting to cling to that, even because the as soon as sky-high demand returns to earth.
The factor is, these report Parks & Resorts earnings from late 2021 by 2023 weren’t regular. It was an aberration pushed by a black swan occasion–resulting in unhealthy enterprise practices and unrealistic investor expectations. That was wholly unsustainable. Disney must recalibrate again to 2019, in any other case the pricing, cost-cutting and visitor unfriendly practices are solely going to lead to even weaker demand. It’ll be a vicious spiral. (It isn’t simply Disney doing this–Common and SeaWorld are responsible of the identical, with the final on that record arguably being the largest offender.)
Another excuse that Disneyland ought to supply increased wages is for the sake of staffing. For those who’ve learn even a couple of posts right here over the previous couple of years, you’ve doubtless heard us blame the absence of X or Y on staffing shortages. This doesn’t simply negatively influence the visitor expertise, but additionally, Disney’s backside line.
Whereas bettering tremendously, staffing shortages stay a difficulty to some extent at Disneyland. The corporate has had problem filling sure key roles, and turnover is excessive. Because of this, Disney has left cash on the desk–as a result of it has actually been unable to fill tables at eating places, supply a full slate of upcharge choices, and many others.
Probably the most seen instance of that is the surface seating space at Lamplight Lounge. Each time I stroll by this and it’s closed, I ponder how that makes any enterprise sense in any way. There’s no scarcity of demand for eating at Disneyland, and it is a bar. A spot recognized for overpriced alcohol that was so common prior to now that it really expanded. Perhaps I’m lacking one thing, however I can not fathom it costing extra to function this than it could make.
There’s additionally the truth that the Walt Disney Firm has made the significance of Solid Members central to its picture. Excessive-level leaders throughout the firm make gratitude for Solid Members a part of their persona. On the subject of the significance of their staff, they actually speak sport.
Naturally, that is true of Bob Iger and Josh D’Amaro, who’re easy operators and savvy public audio system. Nevertheless it was the case even with Bob Chapek! The person who notoriously and infamously didn’t “get” Disney even perceive how vital it was to publicly reward Solid Members.
Throughout one in every of his final public interviews, Chapek supplied this: “the lesson, and what we at all times ought to’ve recognized, is that Disney is all concerning the Solid.” He famous that folks would possibly bear in mind the citadel and churros, however the motive folks have magical recollections that final a lifetime is the guest-cast interactions. He known as Solid Members the “secret sauce” and the important thing to a fantastic visitor expertise.
Chapek additionally stated that “round 99%” of the constructive visitor suggestions he obtained when operating Parks & Resorts was about Solid Members. He was “reminded” concerning the sentiment of Solid Members and the significance of them feeling valued and as if they might relate to the corporate. “It’s a must to make sure that the Solid is on the middle of every thing you do,” Chapek concluded. We by no means say this, however Bob Chapek was proper!
It’s not simply quotes from executives. Disney dedicates a lot of its on-line presence to selling its public picture as an employer. Optimistic remedy of and alternatives for Solid Members are highlighted, as is how vital they’re to the parks and visitor expertise. Amongst many different issues, the Ambassadors have their very own devoted social media accounts and there’s an entire Solid Life subtopic on the Disney Parks Weblog.
Disney is a savvy firm and purposefully covers Solid Members on this method–it’s good for recruitment and likewise for cultivating the all-too-common visitor misperception that being a Solid Member is a dream job. Heck, they even managed to show a choice made as a result of realities concerning the labor market right into a assertion about inclusivity. A lot of the content material produced now revolves round staff–and that additionally consists of tv advertisements within the Orlando and Anaheim/Los Angeles native markets.
The issue isn’t essentially this sentiment–it’s very a lot appropriate. Highlighting Solid Members and their significance to the visitor expertise is completely the best factor to do. The issue is that each one of this rings hole when paired with how Disney really treats Solid Members, as underscored by this standoff. Phrases are meaningless when you don’t stroll the speak. Solid Members breathe life into the parks, and so they have lengthy been the defining component of the visitor expertise.
Now we have been lucky to have great Solid Member interactions and encounters over time, and I completely need extra passionate Solid Members who’re happy with the work they do, the corporate they do it for, and attempt to make magical moments for friends. All of us win if Solid Members are handled properly and really feel valued.
My honest hope is that this dispute between Disneyland and unions is resolved rapidly and to the satisfaction of Solid Members. That the corporate learns from the error of dragging its toes final 12 months in the same standoff at Walt Disney World with these unions, which became a public spectacle.
Disney in the end “misplaced” there within the sense that Solid Members received the pay they have been looking for, however much more damaging was the reputational hit at a time when Disney was already garnering loads of detrimental consideration within the media. And it didn’t even make sense! Common Orlando had already reset the Central Florida market by providing its crew members a elevate, in order that was the brand new ground for Disney. It was an entire unforced error, and I actually hope Disney discovered one thing from that debacle.
Finally, that’s the place we stand on this dispute between Disneyland and the unions. It’s disappointing that Disney doesn’t proactively and voluntarily pay above-market wages leading to a surplus of high quality potential Solid Members, as this ought to be a dream job. Disneyland is a Southern California establishment and one with a storied legacy of superlative service. I shouldn’t offer increased reward to a burger joint than Disney in that regard, and but, right here we’re.
This barely touched upon the hovering price of residing and shelter in and round Southern California, when in actual fact, our whole commentary may have centered round that. As an alternative, we solely touched upon it partially as a result of that’s its personal big can of worms; it’s additionally a (sadly) controversial and ideologically contentious difficulty, and one involving externalities that Disney can not single-handedly deal with. And realistically, there is no such thing as a consequence right here that resolves Anaheim’s price of residing or housing disaster.
It’s additionally not mandatory to deal with any of that within the first place! Disneyland ought to pay increased wages as a result of attracting and retaining passionate and gifted Solid Members needs to be a prime precedence, as ought to treating them in a method that makes them really feel valued and desirous to make magical recollections that can final a lifetime.
As a visitor, it is best to selfishly need all of that. Your expertise is best if Solid Members are handled higher by Disneyland–there’s a straight line between how they’re handled and the way they, in flip, deal with friends. Paying Solid Members increased wages can also be the best factor to do for myriad causes, and means the corporate really strolling their speak. Phrases imply little or no; it’s actions that matter.
Personally, I really feel higher about paying astronomical costs after I know that an organization is doing the best factor and treating its staff properly. In case you are a Solid Member studying this, thanks for all you’ve achieved and good luck in your combat–a combat that shouldn’t even must be fought within the first place. We hope that the overwhelming majority of followers really respect you in exactly the way in which that your organization claims to care. In spite of everything, you’re the magic of Disneyland! As Walt Disney famously stated: “You possibly can design and create, and construct essentially the most great place on the planet. Nevertheless it takes folks to make the dream a actuality.”
Planning a Southern California trip? For park admission offers, learn Suggestions for Saving Cash on Disneyland Tickets. Study on-site and off-site motels in our Anaheim Resort Opinions & Rankings. For the place to eat, take a look at our Disneyland Restaurant Opinions. For distinctive concepts of issues that’ll enhance your journey, take a look at What to Pack for Disney. For complete recommendation, seek the advice of our Disneyland Trip Planning Information. Lastly, for guides past Disney, take a look at our Southern California Itineraries for day journeys to Los Angeles, Laguna Seaside, and lots of different SoCal cities!
Your Ideas
Any ideas so as to add about this dispute between Solid Member unions and Disneyland? Upset that Disney doesn’t “stroll the speak” in the case of worker remedy and wages? Would you’re feeling higher about paying Disney’s premium costs if it meant the corporate was treating its staff higher? Agree or disagree with any of our commentary? Any questions we may help you reply? Listening to suggestions about your experiences is each attention-grabbing to us and useful to different readers, so please share your ideas under within the feedback!
