News Disney offers to pay union members at least $15 by 2021

[disneyflush]

Will it be loss of jobs, higher prices, other cutbacks? We don’t know for sure. We do know that a company is not just going to eat that kind of millions of dollars increase in payroll.

Disney is already doing these things though, even before the payroll increase. Not being snarky by saying that, only using it as an example that Disney doesn't need a reason to do all 3 of those examples. If they get an advertisded, heavily covered driver like payroll increases to use as a reason, and spin it with a positive "we believe in families and we believe in taking care of ours.." message in advertising, then the 5% price hikes we see annually across the board suddenly go to 10-15% with "this is out of our hands" type reasoning.

 

[The90skid]

No. You aren't looking at the bigger picture. You are focused on the smaller picture. That's ok though. FoxBusiness told you that increased wages will wreck our booming, greatest ever, the best REALLY, economy.

See folks, these comments are why we can't have nice threads.

 

[Nubs70]

Arbitrary? What makes this situation an arbitrary wage increase?

Increases in minimum wage as set by governmental decree is an arbitrary wage increase

 

[xdan0920]

Increases in minimum wage as set by governmental decree is an arbitrary wage increase

I didn’t say the gubmint should set the wage. I said I wish Disney would pay CMs more.

 

[Scrungo]

$52 billion to acquire Fox yet they still have to find ways to "afford" raising wages.

 

[peter11435]

$52 billion to acquire Fox yet they still have to find ways to "afford" raising wages.

Hopefully you understand the massive difference between those two

 

[the.dreamfinder]

$52 billion to acquire Fox yet they still have to find ways to "afford" raising wages.

Most of the funding is coming from bought back shares now in the corporate treasury.

 

[21stamps]

Most of the funding is coming from bought back shares now in the corporate treasury.

It’s an investment into future profits. Payroll is not.

The “bought back shares” don’t really matter one way or the other in that scenario. There’s a difference in spending money on something that will make you more money in the long run.

 

[xdan0920]

Payroll is not.

You forgot to say IMO....

Also you’re wrong.

 

[21stamps]

You forgot to say IMO....

Also you’re wrong.

There’s not a difference in an acquisition, and the profits that will result... and raising pay for all hourly employees, employees that will be doing the same job as they’re currently doing?

 

[the.dreamfinder]

It’s an investment into future profits. Payroll is not.

The “bought back shares” don’t really matter one way or the other in that scenario. There’s a difference in spending money on something that will make you more money in the long run.

You forgot to say IMO....

Also you’re wrong.

There’s not a difference in an acquisition, and the profits that will result... and raising pay for all hourly employees, employees that will be doing the same job as they’re currently doing?

Payroll is an investment in your operation. If you pay your workforce well and motivate them to uphold high standards that creates a quality product. High turnover, from CP and burnout rate, results in considerable front end recruiting, hiring and training expenses. Even if you have CMs making more, lower turn over rates keep expenses down and help those departments do a better job.

It’s an investment which builds a culture and institutional memory within the organization which is a not insignificant market differentiator.

 

[xdan0920]

There’s not a difference in an acquisition, and the profits that will result... and raising pay for all hourly employees, employees that will be doing the same job as they’re currently doing?

Don’t be purposely obtuse. You said payroll wasn’t an investment into future profits. I said you’re wrong. Don’t move the goalposts.

 

[21stamps]

Don’t be purposely obtuse. You said payroll wasn’t an investment into future profits. I said you’re wrong. Don’t move the goalposts.

The Fox acquisition and this payroll increase are not even close to the same type of investment. The comment on Fox was so far from relevant to this $15 subject that it’s not even in the same ballpark. Either are stock buybacks.
But, I think you already know this.

Payroll is an investment in your operation. If you pay your workforce well and motivate them to uphold high standards that creates a quality product. High turnover, from CP and burnout rate, results in considerable front end recruiting, hiring and training expenses. Even if you have CMs making more, lower turn over rates keep expenses down and help those departments do a better job.

It’s an investment which builds a culture and institutional memory within the organization which is a not insignificant market differentiator.

Payroll can get results. I noticed on the first page of this thread there is a link to sign on bonuses that Disney is offering. For some of those positions, that Bonus would equal out to @ $1 more per hour for a year...or more.
It is good to incentivize your lower level employees, it’s still not even close to an investment into something who’s sole purpose is for profit and expansion.

Apples and Steaks.

 

[xdan0920]

The Fox acquisition and this payroll increase are not even close to the same type of investment. The comment on Fox was so far from relevant to this $15 subject that it’s not even in the same ballpark. Either are stock buybacks.
But, I think you already know this.



Payroll can get results. I noticed on the first page of this thread there is a link to sign on bonuses that Disney is offering. For some of those positions, that Bonus would equal out to @ $1 more per hour for a year...or more.
It is good to incentivize your lower level employees, it’s still not even close to an investment into something who’s sole purpose is for profit and expansion.

Apples and Steaks.

 

[Lensman]

Hang on, I thought folks said in this and other threads that Disney has had trouble in recruiting and retaining quality hourly staff. Why isn't this problem consistent with the solution of raising pay? If the former is true due to competition for labor from Universal and by the other booming sectors of the economy, then Disney should be willing to give away some significant comp increases for flexibility in implementing needed productivity improvement programs. And maybe they could even throw in some incentive compensation against productivity KPIs or really any KPIs for that matter.

I'll note my bias towards paying staff more even if it leads to price increases. I don't think it should necessarily have to, but I'm willing to take the risk. This as long as Disney retains the capability to get rid of poor performers.

 

[jakeman]

The Fox acquisition and this payroll increase are not even close to the same type of investment. The comment on Fox was so far from relevant to this $15 subject that it’s not even in the same ballpark. Either are stock buybacks.
But, I think you already know this.

Payroll can get results. I noticed on the first page of this thread there is a link to sign on bonuses that Disney is offering. For some of those positions, that Bonus would equal out to @ $1 more per hour for a year...or more.
It is good to incentivize your lower level employees, it’s still not even close to an investment into something who’s sole purpose is for profit and expansion.

Apples and Steaks.

Wow, and folks have called me an apologist in the past.

They are technically two types of investment yes, but they can both lead to the same result, increased profit. The Fox acquisition would be a measurable return on investment with limited data points. Increase wages may not have a measurable return with literally thousands of individual data points.

With a company as big as Disney, it's not an either/or solution. They have the resources to do both...if they choose.

 

[21stamps]

Wow, and folks have called me an apologist in the past.

They are technically two types of investment yes, but they can both lead to the same result, increased profit. The Fox acquisition would be a measurable return on investment with limited data points. Increase wages may not have a measurable return with literally thousands of individual data points.

With a company as big as Disney, it's not an either/or solution. They have the resources to do both...if they choose.

Yes, they do have the ability to do both. But the differences in that type of expenditure vs a starting pay increase are so far from comparable here.

 

[xdan0920]

Yes, they do have the ability to do both. But the differences in that type of expenditure vs a starting pay increase are so far from comparable here.

Again....

 

[21stamps]

Again....

What?! I’m not wrong, and I know that you know this. Regardless on your personal thoughts of the $15 wage.. the comments on Fox and buybacks do not have anything to do with this subject. There is no comparison. Different decision points for either scenario.

 

[xdan0920]

What?! I’m not wrong, and I know that you know this. Regardless on your personal thoughts of the $15 wage.. the comments on Fox and buybacks do not have anything to do with this subject. There is no comparison. Different decision points for either scenario.

Ok. Great. Goalposts moved. You win. I give up.