Disneyland workers just got a huge pay increase with big contract win

Monday was a big win for Disneyland Resort's unionized workers. With the threat of a strike looming, The Walt Disney Company and its unionized workers agreed to a three-year contract that includes an immediate raise, plus future wage increases, seniority increases, more flexible attendance and sick leave policies, and other benefits.

The contract agreement helped Disneyland and its workers avoid what would've been the first labor walkout in 40 years at Disney's Anaheim resort.

Under the terms of the new agreement, wages for current union members have increased from $19.90 an hour to $24, effective immediately upon ratification. Wages will continue to climb over the next three years and by 2026 will be at $26 an hour for ride operators, custodians, ticket takers, cashiers, and candymakers.

Union makers did make one concession: any workers hired after the contract vote will make less than $24 an hour for their first year on the job. According to Rafael Rendon, a custodial worker at Disney’s California Adventure and a SEIU-USWW shop steward (via LA Times), new hires will be paid at 90% of the base wage for the first 52 weeks — which checks out to $21.60 an hour. New hires will get the regular pay raises prescribed by the contract after a year.

Last year, Disney agreed to raise wages for the 8,500 food-and-beverage cast members represented by Workers United Local 50. According to that contract, pay is set to increase to $23 an hour on September 1st.

Previously conducted surveys indicated that Disneyland's theme park employees often faced "economic hardship." Roughly 73% of Disneyland workers reported that they did not earn enough money to cover basic expenses each month, according to the Disney Workers Rising coalition, which represents 14,000 workers at Disneyland, Disney’s California Adventure, Downtown Disney, and Disney hotels.

These two new contracts mean the majority of Disneyland union employees will now earn more than California's minimum wage, which is currently set at a statewide minimum of $16 per hour. Fast food workers in the state of California earn $20 per hour.

Meanwhile, over in Disney World Resort in Orlando, Florida, the approximately 45,000 unionized theme park workers agreed to a contract for $18 an hour minimum wage, with raises of roughly 37% by 2026.

Disney's theme park division is considered to be one of the company's most successful and profitable. It will be interesting to see how prices at the theme parks adjust to these new labor deals. Although industry experts don't believe the increased costs will result in higher ticket prices, it's possible Disney could turn to other areas of the theme park business to make up for it.

Last year, Disney announced plans to lay off 7,000 employees in an effort to cut costs.