Disney And Unions Sign Tentative Three-Year Deal, Averting Strike

Unions representing 14,000 Disneyland employees said on Wednesday that they had reached a tentative labor agreement with Walt Disney Co. DIS, averting a potential work stoppage at the iconic theme park.

The three-year agreement, which includes wage increases and additional benefits for park employees known as "cast members," was signed by an alliance of unions representing custodians, ride operators, merchandise clerks, and other workers at Disneyland Resort in Anaheim, California, Reuters reported.

"Cast members have fought hard for the past four months and this tentative agreement would not have been possible without the strength we all showed throughout this process and the unwavering support from guests and community members," the unions stated.

Disney confirmed the tentative deal in a statement saying, "We care deeply about the wellbeing of our cast members .. and are pleased to have reached a tentative agreement with the Master Services council that addresses what matters most to our cast," Reuters writes.

Union members working at Disneyland and Disney California Adventure theme parks, Downtown Disney retail district, and Disney hotels voted overwhelmingly on last Friday to authorize the union to call a strike if an agreement could not be reached.

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Workers involved in the strike include ride operators, clerks, candy makers and custodians.

The contract for Disneyland employees expired on June 16, while the pact for Disney California Adventure and Downtown Disney workers expires on September 30.

In September 1984, around 2,000 Disneyland cast members went on strike and walked off the job for 22 days before an agreement was reached.

"We have shown Disney that we are the true magic makers of the park and today proves that when workers stand together for what they deserve, we win," the unions said in a joint statement.

"We look forward to making our voices heard during the voting process to ratify this contract."

Price Action: DIS shares are trading lower by 1.01% at $90.03 at last check Wednesday.

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