Disney furloughs non-essential employees at U.S. theme parks - OCR/SCNG

Darkbeer1

Well-Known Member
Original Poster

>>
Disney will furlough non-essential employees at the Disneyland and Walt Disney World resorts on April 19 due to the continuing closure of the company’s U.S. theme parks during the COVID-19 pandemic.


A letter from Disney about the temporary, short-term furlough was sent to U.S.-based executives, salaried and non-union hourly employees of Disney Parks, Experiences and Products.


“With the utmost care and consideration, we are instituting a temporary, short-term furlough for executive, salaried and non-union hourly Cast Members based in the U.S. with the exception of those whose roles or projects are crucial to maintaining our operations during this closure period, effective April 19,” the letter from Disney said.


“With no clear indication of when we can restart our businesses, we’re forced to make the difficult decision to take the next step and furlough employees whose jobs aren’t necessary at this time,” Disney officials said in a statement. “The furlough process will begin on April 19, and all impacted workers will remain Disney employees through the duration of the furlough period.”

Furloughed employees will receive full healthcare and insurance benefits. Employees can use some or all of their paid time off at the start of the furlough period.


“Once furloughed, they are eligible to receive an extra $600 per week in federal compensation through the $2 trillion economic stimulus bill, as well as state unemployment insurance,” Disney officials said in the statement.<<

PLEASE, no COVID-19 discussion. Please focus on the CM's and how they are affected by this decision.
 

Lilofan

Well-Known Member

>>
Disney will furlough non-essential employees at the Disneyland and Walt Disney World resorts on April 19 due to the continuing closure of the company’s U.S. theme parks during the COVID-19 pandemic.


A letter from Disney about the temporary, short-term furlough was sent to U.S.-based executives, salaried and non-union hourly employees of Disney Parks, Experiences and Products.


“With the utmost care and consideration, we are instituting a temporary, short-term furlough for executive, salaried and non-union hourly Cast Members based in the U.S. with the exception of those whose roles or projects are crucial to maintaining our operations during this closure period, effective April 19,” the letter from Disney said.


“With no clear indication of when we can restart our businesses, we’re forced to make the difficult decision to take the next step and furlough employees whose jobs aren’t necessary at this time,” Disney officials said in a statement. “The furlough process will begin on April 19, and all impacted workers will remain Disney employees through the duration of the furlough period.”

Furloughed employees will receive full healthcare and insurance benefits. Employees can use some or all of their paid time off at the start of the furlough period.


“Once furloughed, they are eligible to receive an extra $600 per week in federal compensation through the $2 trillion economic stimulus bill, as well as state unemployment insurance,” Disney officials said in the statement.<<

PLEASE, no COVID-19 discussion. Please focus on the CM's and how they are affected by this decision.
Interesting no mention of hourly union cast. Probably Disney and Union need to meet so Disney can tell about their fate.
 

Darkbeer1

Well-Known Member
Original Poster
Heartbreaking. It would appear that Disney may know they’re not opening until June 1 or later. I can’t imagine them announcing it this far out if they anticipated workers would be back on May 1 or shortly thereafter.

Here in California, you can get from $40 to $450 a week in unemployment, plus the $600 Federal Additional amount.

That equals a salary of $54,600 a year. But with no taxes or union dues taken out, and Disney will pay the full healthcare and insurance benefits.

For many, that is above their current salary ($15 per hour at 40 hours a week is $31,200). Now, some senior folks might have to watch their spending.

The CM's are being taken care for. The possibility of reopening is so much up in the air, but I have said many times, the Large Venue Industry (Amusement Parks, Sports, Concerts, etc.) have been working on a mid-May reopening, as a guide, for a couple of weeks now. That hasn't changed. And yes, that is only a guide..

And when the DLR reopens, they will more than likely not need all the current CM's, as nobody knows how the public will react.

This was a tough, but needed, business decision.
 

TheDisneyDaysOfOurLives

Well-Known Member
In the Parks
Yes
Here in California, you can get from $40 to $450 a week in unemployment, plus the $600 Federal Additional amount.

That equals a salary of $54,600 a year. But with no taxes or union dues taken out, and Disney will pay the full healthcare and insurance benefits.

For many, that is above their current salary ($15 per hour at 40 hours a week is $31,200). Now, some senior folks might have to watch their spending.

The CM's are being taken care for. The possibility of reopening is so much up in the air, but I have said many times, the Large Venue Industry (Amusement Parks, Sports, Concerts, etc.) have been working on a mid-May reopening, as a guide, for a couple of weeks now. That hasn't changed. And yes, that is only a guide..

And when the DLR reopens, they will more than likely not need all the current CM's, as nobody knows how the public will react.

This was a tough, but needed, business decision.

The unemployment is only good for four months at the higher amount as of right now. Hopefully they can find jobs after this is all said and done if they’re not brought back.

On the flip side, they essentially are getting five months of paid PTO when you look at it glass half full.
 

Darkbeer1

Well-Known Member
Original Poster
The unemployment is only good for four months at the higher amount as of right now. Hopefully they can find jobs after this is all said and done if they’re not brought back.

Many politicians for both sides of the aisle have stated, if there is an extended safer at home time frame, that extensions to the financial packages would happen, including unemployment. The first 4 months are now guaranteed, to allow folks to plan.
 

TheDisneyDaysOfOurLives

Well-Known Member
In the Parks
Yes
Many politicians for both sides of the aisle have stated, if there is an extended safer at home time frame, that extensions to the financial packages would happen, including unemployment. The first 4 months are now guaranteed, to allow folks to plan.

You’re going to make me get political.

I have no faith they will actually get anything done.
 

Darkbeer1

Well-Known Member
Original Poster

Figgy1

Premium Member
Yes, it is taxed by the Federal Government, for now. There has been talk of making the payments non-taxable for a time frame.

In California, Unemployment is non-taxable, and your Federal AGI is adjusted accordingly on the state's tax return.
I'd still set money aside until something is set in stone.
 

TheDisneyDaysOfOurLives

Well-Known Member
In the Parks
Yes
Yes, it is taxed by the Federal Government, for now. There has been talk of making the payments non-taxable for a time frame.

In California, Unemployment is non-taxable, and your Federal AGI is adjusted accordingly on the state's tax return.

I think you have to either request taxes taken out or pay those taxes back on your return if you didn’t withhold enough for the year. I see California is different but I think that’s the case in most states.

If this $600 ends up being tax exempt every week? Wow. If you’re furloughed and getting this (with a decent guarantee of getting your job back and medical expenses taken care of) this is a pretty good deal for those employees (and many others).
 

Darkbeer1

Well-Known Member
Original Poster

>>Cast members will continue to receive their full heatlhcare benefits, and Disney will pay both the employee and company premiums.


The furlough program will not impact the Disney Aspire program, under Disney pays the full cost of college for cast members enrolled in participation universities and education/training programs.<<
 

SoCalMort

Well-Known Member
Given the time it would take to bring everyone back and get everything up to operational standards, it's at least possible that even if the park can open sometime before September it would not make sense to operate on a traditional summer schedule.

Any guesses as to what that date might be? For instance, say mid-July the governor announces the self-quarantine will be lifted at the end of July. Would it make sense or even be possible to staff the park for a 9-Midnight operation for the balance of the season?
 

Phroobar

Well-Known Member
Operating a theme park ride is not exactly rocket science. I have a few of the operating manuals. It's not that hard.
 

Darkbeer1

Well-Known Member
Original Poster

>>Disneyland union leaders remain in negotiations with Disney labor relations officials over the details of an impending furlough that has already been issued to the company’s non-union theme park employees in the United States.

“We’re in active talks with the company,” Workers United Local 50 president Chris Duarte said by telephone Friday. “The company’s initial offering is benefits protection during a furlough.”

Disney announced on Thursday, April 2 that it will furlough non-essential employees at the Disneyland and Walt Disney World resorts on April 19 because of the continuing closure of the company’s U.S. theme parks during the COVID-19 pandemic.

A letter from Disney about the temporary, short-term furlough was sent to U.S.-based executives, salaried and non-union hourly employees of Disney Parks, Experiences and Products.


Disneyland’s non-union employees will continue to be paid through April 18 during the coronavirus closures of the parks. Disney recently announced that executives will take temporary pay cuts of 20% to 30% with the company’s top leaders taking even deeper salary reductions.


Negotiations between the unions and Disney will continue through the weekend, according to a letter sent by Workers United Local 50 to its members.


“The company is proposing to furlough all non-essential union members effective April 19th,” according to the letter sent to union members. “This furlough is not a layoff or termination of members. This will help ensure members’ jobs and seniority. When the park reopens to guests, Local 50 members will be the ones that serve them.”

Unions represent a vast majority of Disneyland resort employees, known as cast members in Disney parlance.


Disney initiated meetings with the unions “as part of our commitment to our collective bargaining agreements,” according to the letter.


Disneyland’s union employees make up at least 28,000 of the 31,000 cast members at the two Anaheim theme parks. Workers United Local 50 represents 7,850 food and beverage workers at the Disneyland resort. The larger Coalition of Resort Labor Unions represents more than 20,000 theme park employees.


The individual Disneyland unions are working together in the negotiations with Disney, according to a letter sent to union members by Workers United Local 50.


As of Friday, April 3, Disneyland union members had not been furloughed, Duarte said.


“The furlough is going to happen to union members as well as non-union members,” Duarte said.


The Workers United Local 50 is still bargaining with Disney: “None of this is in stone yet,” Duarte said.


One of the key issues being discussed: Job security for union members once Disneyland and Disney California Adventure reopen.

Disneyland’s union cast members will be advised to apply for unemployment, Duarte said.


Union officials believe furloughed Disneyland employees will be eligible for state unemployment including the federal boost to unemployment that was part of the recent $2 trillion coronavirus legislation.<<
 

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