Walt Disney Co. and unions representing Walt Disney World workers on Thursday said they have reached a tentative agreement that will raise the minimum wage to $18 an hour this year.
The agreement comes after union members rejected Walt Disney Co.’s DIS, +0.98% previous offer in February of a $17 minimum wage, the unions said in a news release. According to the Services Trades Council Union, which is made up of six unions representing 45,000 theme-park workers, there will be a ratification vote on March 29 for the agreement.
“Securing an $18 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,” said Matt Hollis, president of the STCU, in a statement Thursday.
“With the support of the unions, we anticipate cast members will approve this new agreement,” said Jeff Vahle, president of Walt Disney World Resort, in a statement.
The deal will give all theme-park workers a raise, according to the union and the company. The union said raises will range from $5.50 to $8.60 an hour by the end of the contract, with the first $3-an-hour raises arriving this year. The company said the contract would guarantee a minimum of $17 an hour for new and existing employees upon ratification, and at least $18 an hour by the end of the year for current employees.
Raises will be retroactive to October 2022, according to the union, which also said that by the end of the contract in October 2026, the minimum wage will be $20 and pay for housekeepers, dishwashers, cooks, chefs assistants and bus drivers will range from $22 an hour to $28.60 an hour.
Also part of the deal is eight weeks of paid child-bonding leave, which the union said would be a new benefit.
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