Workers at the Disneyland hotel in Southern California ratified a five-year contract to raise their wages at the expense of their free healthcare plans.
The union, known as Unite Here Local 11, represents 2,100 workers at three hotels and a bakery, and have been rallying for increased wages since 2008. Disney has given the workers a choice between paying $10 a week to remain in the union's health care plan, or joining the chain's plan while receiving a bonus.
The plan was ratified by an "overwhelming majority" on Dec. 8, 2011. "We’re extremely pleased that the Disneyland Resort hotel cast members represented by Unite Here Local 11 have overwhelmingly supported this fair and comprehensive agreement,” Tony Bruno, vice president of Disneyland Resort Hotels and Downtown Disney, told Bizjournals.
According to the Contra Coast Times, the new contract is effective through January 2017, and also includes wage increases, decreased workloads for housekeepers, and seniority protection for full-time and part-time workers. "It's a big relief, especially this time of year," Juan Ruiz, a restaurant server at the Grand Californian Hotel for 11 years, told the Orange County Register.
The major point of contention in the agreement between Disney and the union was met during talks about healthcare costs. The union wanted to keep its own benefits, as they required no employee contributions, while Disney urged the union to join the company program that mandates payroll deductions. The new contract gives current employees the option of either plan, but both will require employee contributions.