Disney World Has a Looming Labor Problem (Beware a Strike)

While the theme park giant has had a sold-out holiday season, it faces possible worker problems that could ruin your vacation.

Walt Disney's (DIS) - Get Free Report Florida theme parks essentially completed their covid comeback this holiday season. 

Magic Kingdom, Epcot, Hollywood Studios, and Animal Kingdom welcomed capacity crowds from before Christmas with the expectation of sellouts past the New Year's holiday.

Prices are higher than they ever have been and people are now paying for things that were once free. Disney has basically done all the things that might scare customers away -- food, tickets, and hotel rooms all cost more -- and the public has happily accepted whatever the company has asked them to accept.

Even the horrendous holiday travel season has not seen a dip in Disney World's crowds. It may take longer than expected, but people are making their way to the parks, opening their wallets, and spending without an economic care in the world.

That's incredibly impressive given that back in March 2020 the company closed its U.S. theme parks due to the pandemic. And, even in Florida, where covid rules are generally lax, it reopened with limited capacities and many favorite activities missing.

Now, health checks, masks, and social distancing are gone while crowded rides, hugging characters, and all-you-can-eat buffets have returned. It should be a triumphant period for Disney.

But a major storm cloud is on the horizon.

Disney World May Have a Labor Problem 

Disney has long faced scrutiny for its labor practices at both its Florida and California theme parks. In 2018 the company reached an agreement to raise wages at Disney World to a minimum of $15 an hour, but that increase did not fully kick in until 2021.

Now, after pandemic-era layoffs and post-pandemic callbacks, the company finds itself in negotiations with the Service Trades Council Union, which represents 40,000 Disney workers (or cast members, in company parlance). The two sides stopped negotiating in mid-December after failing to reach an agreement on wage increases, among other items, BlogMickey.com reported.

The two sides plan to meet again on January 9 and 10, but if things go sideways, a labor action could happen.

"In the year-end statement, Local 737 noted that Sodexo workers at the Orange County Convention Center voted for a strike and said that the contract for the Convention Center prohibited strikes, just like the contract with Disney World," the website reported.

It's a Question of Disney's Contract

Technically, the current contract between Disney and Local 737 has a no strike/no lockout policy.

"During the existence of this Agreement, there shall be no strikes, picketing, work stoppages or disruptive activity by the Union or by an employee, and there shall be no lockout by the Company," the contract reads.

The question is what will happen when the contract expires. Disney and the union are currently operating under an extension to the original contract, which expired in October. Neither side has said how long the extension lasts, but for workers to strike, the contract would have to expire.

Under the current deal, the union would be obligated to make efforts to stop a strike and Disney could fire workers who take part in one.

The Union shall not sanction, aid or abet, encourage or condone a work stoppage, strike or disruptive activity at the Walt Disney World Resort and shall take all possible steps to prevent or to terminate any strike, work stoppage or disruptive activity. No employee shall engage in activities that violate this Article. Any employee who participates in or encourages any activities which interfere with the normal operation of Walt Disney World Resort shall be subject to disciplinary action, including discharge.

The union wants an immediate raise to an $18-an-hour minimum while the company has offered to continue raising wages by $1 per year, BlogMickey reported.