Walt Disney World and the unions representing 45,000 park employees have reached a tentative agreement on a deal that features an $18.00 per hour starting wage.
Disney's Riviera Resort
The Services Trades Council Union today announced agreement on a new labor deal with The Walt Disney Company. The agreement includes an $18 per hour minimum wage, up from the $17 per hour offered by Disney during the last round of negotiations. Pending approval from union members, the new minimum will be applied to all workers this year with back pay for all eligible workers. The union's prior agreement expired October 1, 2022 with both parties agreeing to continue working under the old deal while negotiations took place.
Under terms of the new deal, the minimum pay will rise to at least $20 per hour by 2026. Union members will be asked to vote on the contract Wednesday, March 29.
A significant portion of Disney Vacation Club owner dues are tied to Cast Member pay rates. According to DVC, employee wages and benefits make up approximately 75% of the Operating Expenses for each resort. As of 2023, the operating portion of annual dues for Walt Disney World resorts is generally between $5-6 per point.
Member dues contain a "Developer Guarantee" which states that Disney Vacation Development warrants that owners will "only be required to pay an assessment for operating expenses" as stated in the annual budget. As such, owners should not expect to see any retroactive charges related to the pay increase. Should an operating budget shortfall occur for 2023, Disney Vacation Development will be responsible for the additional dollars. However, members can expect that budgets for 2024 forward will reflect the full terms of any ratified union agreement.
The full statement from Services Trades Council Union is as follows:
Today the Services Trades Council Union (STCU) representing 45,000 theme park workers reached a historic tentative agreement with Walt Disney World.
Under this agreement, which is subject to approval by union members, every current theme park worker in the union will receive a raise between $5.50 and $8.60 by the end of the contract, with the first $3 in raises arriving this year.
"Securing an $18.00 minimum hourly rate this year, increasing the overall economic value of Disney's original offer, and ensuring full back pay for every worker are the priorities union members were determined to fight for. Today, we won that fight!" said STCU President Matt Hollis. Nearly 14,000 union members voted to reject Disney's previous offer in February. In that proposal, Disney had offered only a $17 minimum in 2023. Hotel and theme park workers from every union department voted to reject that offer and keep fighting for every union member to get $18 this year and full back pay.
The six STCU affiliates - IATSE Local 631, IBT Local 385, TCU Local 1908, UFCW Local 1625, UNITE HERE Local 362, and UNITE HERE Local 737 - are unanimous in their support for this agreement and will be recommending their members vote to ratify the agreement. The STCU is scheduling a ratification vote to take place on March 29 from 7:00am - 7:00pm and will announce the results of the vote at that time.
For workers in job classifications that currently earn the minimum of $15, minimum hourly rates will increase to $16 effective 10/1/2022, with full back pay to all eligible union workers, then increase again to $17 upon ratification and $18 this December. Their total raise will be $5.50 in 5 years, with the first $3 coming by December 2023.
Workers in many classifications will receive additional increases, with raises retroactive to October 2022:
• Union Housekeepers: increase from $17 to $20 immediately, ending at $24 in Oct. 2026
• Union Dishwashers: increase from $15 to $18 immediately, ending at $22 in Oct. 2026
• Cook 2 (union prep cook): increase from $16.40 to $20 immediately, ending at $24 in Oct. 2026
• Cook 1 (union line cook): increase from $19 to $23.10 immediately, ending at $27.10 in Oct. 2026
• Union Chef Assistant: increase from $20 to $24.60 immediately, ending at $28.60 in Oct. 2026
• Union Bus Drivers: increase from $18 to $20.50 immediately, ending at $24.50 in Oct. 2026
The agreement also provides eight weeks of paid Child Bonding Leave, which is a benefit that does not exist in the current contract, and offers increases to many hourly premiums. The minimum rate for current workers will increase to $20.50 by October 2026. The minimum rate for workers hired after December 3, 2023, will increase to $20 by October 2026.
