Politics 28000 Layoffs coming to Disney's domestic theme parks - statement from Josh D'Amaro

[tirian]

Do you ... do you have any evidence at all that shows shareholders would sell? Because it's easy to find studies that show a positive correlation between charitable giving and shareholder value. [Cite Cite Cite].

There's this implicit assumption in the US that "it has to be this way" or that "the market demands" these actions. This CNBC article says Disney was "forced" to lay off CMS.

But Disney wasn't forced to do it, and countries like Germany show that there are alternatives to the US version of capitalism.

The first step is pointing out that it's a choice, made by actual people, to lay off 28,000 CMs while paying shareholders a $3B dividend.

Let's identify the specific individuals involved and have them explain themselves. Because another way of looking at this layoff is that local, state, and federal taxpayers are now on the hook for their welfare.

We should also mention this “U.S. version of capitalism” is a product of greedy ‘90s Wall Street, not classic textbook supply-and-demand, but that’s another story for another forum.

 

[homerdance]

If the employees are eventually needed again and have moved on, the cost of retraining a bunch of new employees isn’t cheap either.

 

[LAKid53]

Just this morning I've invented two new things that also provide capital. I call them "banks" and "bonds". Do you think they'll be useful?

There's this thing called a debt to equity ratio that ideally should be between 1.5 and 2.0.

 

[LAKid53]

Lol. You’re the one living in fantasyland if you think that’s how it actually works.

I worked MORE hours than full time employees!

That IS how it works. FLSA takes a pretty dim view of employers consistently classifying employees as part time with minimal to no benefits while in reality those employees are working a 40 hour week.

 

[TrainsOfDisney]

That IS how it works. FLSA takes a pretty dim view of employers consistently classifying employees as part time with minimal to no benefits while in reality those employees are working a 40 hour week.

On paper...

 

[LAKid53]

On paper...

Having been involved in a few FLSA investigations, I must disagree. And I'm sure Disney doesn't want to step into that.

 

[LAKid53]

It all depends what the company payroll dept defines as part timers working too many hours to make them full time with benefits. I've known in my younger days part time workers work 100 hrs per week for several weeks during high season but in low season they work few hours or not at all.

Disney paid those workers 60 hours of overtime each week?

 

[LAKid53]

Your example is completely different, you are making the case for discrimination, not calling someone full vs. part time. Everything I have found states that there are no rules about what constitutes a part time or full time employee. I mean, college program is considered part time and get no benefits, and there is no chance you will convince me they work less hours.

While the FLSA doesn't address part-time employment directly, any non-exempt employee working more than 40 hours in a work week is eligible for time & half overtime.

 

[UNCgolf]

While the FLSA doesn't address part-time employment directly, any non-exempt employee working more than 40 hours in a work week is eligible for time & half overtime.

If wages are low enough, it could be cheaper for a company to pay a non-exempt employee regular overtime than to pay for them to have benefits. The ACA is much stricter about that than the FLSA, though.

 

[TrainsOfDisney]

While the FLSA doesn't address part-time employment directly, any non-exempt employee working more than 40 hours in a work week is eligible for time & half overtime.

There are some loopholes to that. At least in my experience. Maybe I should hire you to represent me? Lol.

 

[LAKid53]

If wages are low enough, it could be cheaper for a company to pay a non-exempt employee regular overtime than to pay for them to have benefits. The ACA is much stricter about that than the FLSA, though.

State employment laws may also come into play.

Depends on the benefits - paid leave, insurance, defined benefit plan vs. defined contribution plan, etc.

 

[UNCgolf]

State employment laws may also come into play.

Depends on the benefits - paid leave, insurance, defined benefit plan vs. defined contribution plan, etc.

Of course. That's far too complex to get into on a Disney message board, though.

It's also possible that most of the entertainment cast (if any still exist) are exempt employees and wouldn't get overtime regardless, although it's impossible to say without more specific knowledge.

 

[LAKid53]

There are some loopholes to that. At least in my experience. Maybe I should hire you to represent me? Lol.

"Some loopholes"? FLSA is pretty clear what constitutes overtime for non-exempt employees. Also pretty clear what a non-exempt (hourly) and exempt (salaried) employee is.

 

[TrainsOfDisney]

"Some loopholes"? FLSA is pretty clear what constitutes overtime for non-exempt employees. Also pretty clear what a non-exempt (hourly) and exempt (salaried) employee is.

So I guess as I was exempt? You seem to care more than I do. Lol

 

[LAKid53]

Of course. That's far too complex to get into on a Disney message board, though.

It's also possible that most of the entertainment cast (if any still exist) are exempt employees and wouldn't get overtime regardless, although it's impossible to say without more specific knowledge.

Creative professionals are typically exempt, provided the minimum weekly salary threshold is achieved.

 

[LastoneOn]

Here is a summary of her activity

Press Releases | U.S. Senator Elizabeth Warren of Massachusetts

The Official U.S. Senate website of Senator Elizabeth Warren of Massachusetts

www.warren.senate.gov

Well thank the sprits that she hasn't had to write letters to any local, city, or state governments. Haven't read anything about mass furloughs or terminations among that lot. whew

 

[LAKid53]

So I guess as I was exempt? You seem to care more than I do. Lol

If your position met the FLSA classification for exempt, you're not eligible.

 

[LAKid53]

Well thank the sprits that she hasn't had to write letters to any local, city, or state governments. Haven't read anything about mass furloughs or terminations among that lot. whew

Yet. Florida has a projected $2B+ revenue shortfall it needs to plug. If it can't by cutting programs, then layoffs will happen.

 

[UNCgolf]

Creative professionals are typically exempt, provided the minimum weekly salary threshold is achieved.

That was my point.

I'm just not sure that all of Disney's entertainment cast would qualify (some of them almost certainly would) because I don't know what positions they consider entertainment.

 

[crispy]

I think the problem is that Disney now has a rep as a company that wants to provide a pricey experience on the cheap. It's not so much the layoffs themselves--obviously there will be cuts when business is this badly affected--it's that this is a service-oriented business and you have to show ticket buyers that they're getting an experience that they can't get cheaper somewhere else. Yet it's assumed that Disney is going to try to keep the corona level of service AFTER they get back up to higher levels of attendance.

Put another way--If people can't see Mickey or Minnie or the princesses even when corona is "over," then why should they go all the way to Disney World when it's easier to just go to the beach/a cabin/a local theme park? (Or, if you're heading down to Florida anyway... why not pick Universal?)

Disney has been this way for years which is why we haven't visited in a while. I still have a soft spot for Disney (thus posting on this thread), but I can't in good conscience support them financially. I feel really bad for the laid off employees, but this was an inevitable end. The pandemic just sped up the process. As fans, we want magic, but as a business, they want leanness and efficiency. Those things don't coexist well especially when you have to answer to shareholders. I don't necessarily blame Disney for laying off employees during a pandemic...so has most every other company. I do blame them for allowing Iger to sacrifice the company's reputation and well-being at the altar of his ego. The pandemic made things worse, but the chickens were coming home to roost at some point.

As someone who once loved Disney, it kinda hurts to realize that a company doesn't love you back. As a customer, I was a walking wallet and nothing more. Employees are seen as commodities, not people. I quit going to WDW when I realized I was giving more than I was getting. It hasn't been worth the price of admission for me in a long time. Disney way of doing things in recent years is to charge more for less. People have made Disney magic, not overpriced cupcakes or dessert parties, but people cost money while cupcakes make money. That's all that matters. Disney lost the balance between maximizing profits and offering superior service a long time ago, but they have been able to outrun it.

I truly feel terrible for the employees who have lost their jobs and have had some friends affected. It is awful for all of them because so many have poured their lives into the company.