As a gamer with a background in social justice issues and a deep love for Disneyland, I can’t help but feel both elated and disheartened by this recent news. On one hand, it’s fantastic to see that over 50,000 underpaid Disneyland workers will finally receive the compensation they deserve and improve their lives significantly. This is a victory not just for them but for all those who have been fighting for fair wages and better working conditions.
Following a five-year court dispute concerning allegations of not adhering to minimum wage standards, Disney has agreed to compensate approximately 50,000 underpaid Disneyland employees to the tune of $233 million, as part of a class action settlement.
In his statement, attorney Randy Renick for the employees expressed that this settlement would provide substantial benefits to the workers, significantly improving not just their lives but also the welfare and wellness of their families.
Anaheim voters’ passage in 2018 of Measure L — which forced hospitality businesses that receive tax rebates to increase the minimum wage to $15 an hour, with bumps tied to inflation — sparked the lawsuit. After the initiative was approved, Disney moved to end $267 million in subsidies for a luxury hotel to evade the mandate. Josh D’Amaro, chairman of Disney Parks, also called to end a decades-long moratorium on entertainment taxes.
Workers from the Orange County region submitted a proposed class action lawsuit in the Superior Court, citing a set of agreements made with Anaheim in 1996. These agreements resulted in tax breaks totaling over $200 million being given to Disney for the construction of California Adventure and a parking garage. The five workers who initiated this lawsuit reportedly earned between $12 to $14.25 per hour while working at the resort, as stated in the court documents.
Disney contends that Measure L does not apply to them, as they understand the term “rebate” in the law to only refer to tax refunds given to local residents, rather than any form of financial return. The court agreed with Disney’s interpretation, deciding that the company doesn’t receive city funding or subsidies.
In the previous year, a California appeals court overturned the initial ruling against me. A panel of three judges from the 4th District Court of Appeal in California, based on employee protections, deemed my 1996 agreements as subsidies because they granted Disney the “right to receive a return of taxes.” The California Supreme Court chose not to intervene in this case.
Disney, along with legal representatives for the employees, requested the court’s approval for the proposed settlement last Friday. The judge is expected to review the agreement during a hearing scheduled for next month.
A representative from Disneyland declared that each team member, or “cast member,” earns a minimum wage of at least $19.90 per hour according to Measure L. Interestingly, 95% of them actually make more than that amount. Furthermore, the rep expressed satisfaction as this issue appears to be nearing a resolution.
In the month of July, Disney reached a deal with their primary union, Master Services (which represents over 13,000 employees at Disneyland), increasing the minimum wage for these cast members working in attractions, cleaning services, and merchandise to $24 an hour.
2018 research conducted by Occidental College and Economic Roundtable revealed that many Disneyland employees struggle with issues such as homelessness, food insecurity, and low wages. In fact, a staggering 75% of the respondents admitted they don’t make enough to cover their essential costs, while a troubling 10% shared they had recently experienced homelessness or lacked a permanent place to sleep. Furthermore, it was determined that over 85% of unionized employees earn less than $15 an hour.
The settlement was reached after Disney last month agreed to pay $43.25 million to settle a class action from roughly 9,000 female employees in California who accused the company of pay discrimination. Under the deal, Disney will retain experts to address “significant pay differences” using a model commissioned by lawyers representing the women.
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2024-12-17 23:55