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Please help to answer using this information: Disney employees were excited to learn that they would be getting a $ 1 , 0 0 0
Please help to answer using this information:
Disney employees were excited to learn that
they would be getting a $
bonus after
the federal government lowered the tax rate
for major corporations. The Disney company
announced that it would give a portion of a $
billion tax windfall to
nonmanagement
workers. The excitement was short
lived, how
ever, for the company's union employees.
Disney officials threatened to withhold the
bonus unless members of the Service Trades
Council Union representing housekeepers,
kitchen staff, shop clerks, and other low
wageemployees ratified the company's latest con
tract offer. Ninety
three percent of the union
membership had previously rejected the con
tract proposal, which called for a
cent an
hour raise over two years with a $
bonus
Union leaders cried foul, claiming that the
company was engaged in "extortion," punishing
members who had voted against the contract
proposal. The union representing employees
at Disneyland Resort filed a complaint under
the National Labor Relations Act, alleging that
Disney was withdrawing the bonus as a threat
against workers. For its part, Disney claimed
that the bonus should be included as part of
any settlement.
Those familiar with Disney's history shouldn't
be surprised by the latest labor unrest. In
Disney cartoonists and illustrators went on
strike, unionizing and asking for higher wages.
Walt and Roy Disney retaliated, threatening
workers and firing head animators. Later Walt
would use the House Un
American Activities
Committee as a platform to condemn the strik
ers as Communists. In
visitors to Disney
parks were greeted by union protesters dressed
as Snow White, Tinkerbell, and other Disney fig
ures holding picket signs. In
the company
was forced to pay
Florida employees $
million in back wages for illegally charging them
for costumes. Lawsuits by laid off technology
employees claim that Disney illegally replaced
them with foreign workers.
While labor conflict is nothing new to the
home of Mickey Mouse, recent negotiations were
particularly tense. That's because the company
took a hard
line stance even as corporate prof
its and executive salaries soared. Of the compa
ny
s recent $
billion profit, $
billion came
from its theme parks.
Disney raised prices on
daily and multiday ticket packages to its prop
erties.
Disney CEO Robert lger made $
mil
lion, chief operating officer Tom Staggs received
$
million and chief financial officer Christine
McCarthy took home $
million
In addition to holding public protests and
sponsoring a rally featuring Bernie Sanders,
union leaders commissioned a report by
researchers at Occidental College. The investi
gators found that most union employees have
been unable to keep up with soaring hous
ing costs in Orange County, California, where
Disney is the largest employer. Eighty
five
percent earn less than $
an hour, which puts
them below the poverty line for a family of four.
Many are homeless, living out of their cars or at
the homes of friends and relatives. Three quar
ters say that they do not earn enough to meet
basic expenses. Sixty percent said the food they
bought didn't last the month. According to the
authors of the report,
The Walt Disney Company promotes
Disneyland Resort as the "happiest
place on earth." But for many of the
approximately
people who
work there, it is not the happiest place
to work. Despite steep increases in the
cost of housing and other necessities,
Disneyland workers have suffered
steady pay cuts and are struggling to
make ends meet.
Spurred by the report's findings, Disney
labor leaders i
n Anaheim placed a "living wage"
initiative on the ballot, which proposed raising
the minimum wage to $
and then $
an hour
for hospitality companies receiving a city tax
subsidy. Disney settled with the Disney World
and Disneyland unions before the initiative
came to a vote. Disney boosted starting wages
to $
an hour at both theme parks and guaran
teed future raises over the life of the contract.
The living wage ballot measure then passed by
a comfortable margin. The head of the Anaheim
Chamber of Commerce called the ballot result
a "tragic outcome" that would drive away
future hospitality projects, costing jobs. A union
spokesperson called his claim "laughable."
What role did the Occidental report play in
the union's success?
Do you think Disney would have agreed to
meet union demands if it hadn't been for
the threat of the ballot initiative? Was this
an unfair negotiation tactic?
Should all workers be guaranteed a "living
wage"? What impact would raising the
minimum wage have on business and the
economy?
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