Negative Economic Impact is Disney’s fault?
Now, I am not a big annalist at all, but I did get a little puzzled when I saw the article “Union blames Disney for millions in economic loss” where they say that Walt Disney World low wages is the source of the negative economic impact.
The Service Trades Council, six unions representing 29,000 of the 56,800 Disney employees in a wide variety of jobs, blasted Disney in a Monday afternoon press conference based on the results of an economic report that outlines a $23.4 million loss in wages, goods and services in Central Florida because of that policy change.
I understand that many of the Cast Members have low wages, but I also know that many of them work there not just for the money but also for the experience and for the pride of what they are part of. Sure, your regular Cast Member will never become rich while working at WDW but they will be part of something nobody can ever take away from them again.
What does puzzle me is the fact that they state the following:
Walt Disney World policy of offering lower starting wages to newly-hired employees covered by union contracts have created a negative economic impact in Central Florida.
Didn’t Disney bring economic to Florida when they decided to open Walt Disney World. I wonder what it would look like if Disney never would have built their parks there. Economics would no way be near what it is today. Imagine missing out on the tourist industry! Don’t get me wrong, I am in no way judging Florida or their people (I envy all of you living there and I love Florida), I am just wondering how the union can say this but don’t look at the whole picture.
The most recently-hired workers, says the union, were paid 12.2 percent less than older workers. That economic loss means workers had less to spend, which, in turn, means Orange and Osceola counties lost out on $23.4 million in the production of goods and services and 178 jobs worth $5.24 million in pay in 2006.
Kim Prunty, a Disney spokeswoman, says the study as outlined in the union’s press release does not completely represent the facts. “The reality is that Walt Disney World has an annual payroll of $2 billion,” she says. “Decisions about wages are not made independently by Disney, they are set by contracts negotiated by the unions.”
It isn’t a secret that Disney wages isn’t that high. You wont get rich working for Disney as a CM, but I already mentioned that above. The Cast Members are the heart of the park and many of them do it for the love of the job, to get the experience, for the adventure, while other might do it to get bread on the family table. Whatever the reason is for the Cast Member to work there, the Disney paycheck comes with it.
What most people tend to forget (including me) is that Disney is a company with shareholders. And what is the first thing a business must do? Make money for their shareholders, with saving money being the close second on that list.
What is the most expensive in any business? The people! So where can you save money the most? That’s right; with that same group. Unfortunately this is the case in many businesses. (On my last yearly evaluation at my work they even opened with “there is no money, so don’t ask”, even if it was a good evaluation and with the company making profit… it is happening everywhere) A human person in a company is a big cost and any company is always looking on how to reduce this cost. Low wages is one example. It is a shame, especially when we, the general public and Disney fans, see what a fantastic job the Cast Members do.
“Reversing the downward trend (toward lower wages) will be an issue in this year’s contract negotiations,” according to a statement from Morty Miller, president of the Service Trades Council Union and Unite Here Local 362, the union that represents ride, custodial, telemarketing and auto plaza workers
Maybe the negotiations will give the CM’s a little extra, although they will stay low wages, even after successful negotiations.
…and from my side, a big thank you to all you cast members out there for making Walt Disney World what it is today. It could not have been done without you…
“We (at Disney) currently have hundreds of job openings ready to be filled”
Eh, call me 
March 20th, 2007 at 4:40 pm
“That economic loss means workers had less to spend, which, in turn, means Orange and Osceola counties lost out on $23.4 million in the production of goods and services and 178 jobs worth $5.24 million in pay in 2006.”
OK, so they were minus 178 jobs, but how about the 53,000 jobs that Disney currently create? That means Disney are about 52,822 in the credit column for jobs in central Florida (plus the $30billion or so in revenue that the parks bring in annually). It just sounds like a very blinkered, simplistic argument to me.
Yes, CMs generally are underpaid for the work they do, and they do a fabulous job in the circumstances. But there are also a few perks to working for Disney, and it is also a delicate balancing act to do. Pay the CMs more = raising the cost for people to visit, which probably = fewer visitors, which probably = fewer jobs.
Certainly the Union need to be fighting for better pay for their members, but it sounds as if they really don’t have the big picture in mind.
Perhaps this needs some input from Disney CMs to put their union’s case a bit better?