Walt Disney Company Increases Minimum Wage
Recently, the Walt Disney Company announced that thousands of Walt Disney World workers will receive raises as the result of a new contract settlement that the company has reached with the unions. As a result of these negotiations, workers will have their minimum wage increased to $15 an hour by 2021. This landmark resolution comes after a period of wage protests that have occurred in Florida.
Improvements for Workers
The unions that were involved in these debates represent 38,000 Walt Disney World Workers or half of the individuals who are currently employed at the park. Many of these workers currently make less than $11 an hour. As a result of these increases, many workers will now remain at the Walt Disney Company longer.
The Terms of the New Contract
This new contract will increase worker wages in $1 increments. By September 2019, the wage will be increased to $13 an hour, then in October the wage will be increased to $14 an hour, and by October 2021, the wage will be increased to $15 an hour.
By October 2012, workers who currently make over $10 an hour can expect an increase of at least $4.75 in wages. This change will introduce $1 billion in additional wages into Florida’s economy during the four-year period. This decision will make the wage received by a large number of Disney World workers much higher than Florida’s minimum wage, which is currently $8.25 an hour.
The Disneyland Resort in California also recently announced that it would increase its minimum wage to $15 an hour by 2022.
The History of the Decision
The decision in this case was reached after a long period of negotiations. Initially, the Walt Disney company offered only a 2.5% salary increase and no change to minimum wage. After a protest involving hundreds of Disney World workers, the company announced that it would give $1,000 bonuses to workers after the pay raise negotiations concluded.
In response, the unions filed complaints with the National Labor Relations Board, which ruled in favor of Disney. The unions and the Walt Disney Company then agreed to a wage increase in exchange for several smaller changes including how workers at the company can transfer from one position to another.
The Impact of the Decision
These raises are expected by some to result in the increase of wages for non-union workers in Florida, as well. The Walt Disney Company is such a large employer in the state of Florida that many companies respond to trends among Disney workers, which means that other companies in Florida are expected to increase pay rates for workers, as well. It is also important to note that revenues generated at Disney’s theme parks increased by 6% to $5.2 billion recently, which has marked a period of growth and financial prosperity for the company.
Contact an Experienced Wage and Hour Lawyer
If you believe that your employer has violated either federal or state wage and hour laws, you should not hesitate to contact a seasoned wage and hour attorney. Contact Herrmann Law today for assistance.
