Disneyland strike approaches: Over 14,000 workers plan first strike in 40 years at Californian theme park – Walt Disney (NYSE:DIS)

One of the world’s largest media and theme park companies could face major challenges due to a possible strike – just one year after the company was hit by a strike in Hollywood.

What happened: Media giant The Walt Disney Company DIS is currently experiencing a resurgence in its film segment with the recent success of “Inside Out 2” and a future slate that includes “Deadpool & Wolverine,” “Moana 2” and “Mufasa: The Lion King,” among others.

The company’s theme park division may soon come under fire as more than 14,000 workers represented by four unions have approved a strike.

According to a report by NBC News, a majority of union members voted in favor of a strike on Friday. Workers cited unfair labor practices as the reason for the possible strike during ongoing collective bargaining negotiations. According to sources, 99% of union members voted in favor of the strike.

According to the report, workers involved in the strike include ride operators, salespeople, candy makers and janitors.

“This vote shows that the Cast Members have had enough!” Disneyland candy maker Aaron Zarate, who is a member of the workers’ collective bargaining committee, said.

Also read: Walt Disney Q2 results: Profit beat, theme park growth slows, crackdown on password sharing and more

Why it is important: The strike authorization is no guarantee that it will happen, but it could be the first strike at Disneyland since 1984.

In September 1984, approximately 2,000 Disneyland employees went on strike and stopped work for 22 days before an agreement was reached.

“We greatly value the important role our employees play in creating unforgettable experiences for our guests and remain committed to reaching an agreement that focuses on what matters most to them while positioning the Disneyland Resort for growth and job creation,” a Disneyland spokesperson said. Jessica Good said.

Good said a strike authorization was “nothing unusual” and negotiations between the two sides would continue.

According to the report, the negotiations date back to April 24. The contract for the Disneyland cast members expired on June 16. A contract for the Disney California Adventure and Downtown Disney cast members expires on September 30.

On June 10, Disneyland employees filed unfair labor practice lawsuits against the theme park operator. The National Labor Relations Board is investigating the allegations.

According to a 2018 study by Occidental College and the Economic Roundtable, 74% of Disneyland employees are unable to cover their basic monthly expenses, with room and board costs being one of the biggest challenges.

A survey of union members this year found that 64% of performers spend more than half their monthly salary on rent.

The strike by screenwriters and actors in Hollywood led to the delay of several Disney films and the media company had to expect lower production in 2023 and 2024.

CEO of Disney Robert Iger was criticized for his comments on the strikes, as they were perceived as not being worker-friendly enough.

“We’ve talked about the disruptive forces that are impacting this business and all the challenges we face, the recovery from COVID that is still underway but not fully complete. This is the worst time in the world to add to that disruption,” Iger said previously.

The CEO said the expectations of the striking workers are unrealistic, “and they compound the challenges the company already faces, which are, frankly, very disruptive.”

The Disneyland strike authorization is being closely watched by investors and analysts and could lead to volatility in Disney shares until an agreement is reached.

DIS price promotion: Disney shares fell 2% to $93.78 on Monday, versus a 52-week trading range of $78.78 to $123.74. Disney shares are up 4.1% year-to-date for 2024.

Continue reading:

Photo: Shutterstock