Disneyland Resort agrees deal to raise minimum wage for California staff

Finance news

Walt Disney Co’s Disneyland Resort announced it has agreed to raise the minimum wage of employees at its California theme park to $15 per hour by January 2019.

The subsidiary, which runs Disneyland, Disney California Adventure Park and Downtown Disney, said in a press release late Thursday that it had agreed the deal with Master Services Council.

Master Services Council is a conglomerate of unions that represent roughly 9,700 workers employed at the three sites.

The current minimum of $11 per hour is to be lifted immediately to $13.25 with the full 40 percent rise to $15 kicking in at the beginning of next year.

A separate deal for Orlando staff, which would lift their minimum wage from $10 per hour to $15 per hour by 2021, is yet to be finalized.

Former presidential candidate Senator Bernie Sanders attended a protest rally with Disney staff earlier this year and subsequently accused the firm of turning the resort into a “nightmare” for struggling workers.

On July 13, Sanders then tweeted that Disney CEO Bob Iger ought to have a good explanation for his multi-million dollar salary.

Parks and Resorts during the second quarter of 2018 represented Disney’s second-largest division in terms of income, generating $4.88 billion in sales and $954 million in operating income.

In February, Disney raised the admission price for peak period access to the California site by 9 percent, raising the ticket price from $124 to $135.

The share price of Walt Disney has risen 5.6 percent year-to-date.