Disney to turn over some jobs to service company

[napnet]

The first workers to greet many tourists at Walt Disney World will soon be some other company's employees.

Disney World plans to turn over at least 167 bell, valet and baggage service jobs to an outside company in January. The jobs will go to Baggage Airlines Guest Service (BAGS,) the company that already runs Disney's Magical Express, the service that transports Disney's visitors to and from Orlando International Airport.

Union officials plan to protest. "We are not happy about it," said Joe Condo, international vice president of the Transportation and Communications Union, which represents the affected workers.

Disney is planning to offer them other jobs at comparable wages, tip opportunities and hours, said spokesman Jacob DiPietre.

"The details are still being negotiated with the union," he said.

"Comparable: that's going to be the magic question," Condo responded. "And why are they doing it in the first place? To save money. That's why we are going to fight this."

He said the union contract would prevent the company from subcontracting the services to save money. Condo said Disney officials told him that the change was being made to improve quality, but he said he didn't believe that, adding, "That's a slap to our workers."

http://www.orlandosentinel.com/business/orl-bk-disneyworkers17,0,401506.story?track=rss

 

[CTXRover]

I was all for outsourcing of some backstage jobs such as the IT department and some others with companies that have a better understanding of certain aspects of the business and letting Disney do what Disney knows how to do, but I don't support the outsourcing of jobs that are directly involved with guest interaction. When this happens, they must make sure that these employees follow the Disney guidelines in terms of appearance and attitude towards guests. I don't know who or how many valet/bell people are affected as a percentage of those currently employed resort wide (is this all bell services or a fraction of it?), but obviously this is the step that could lead towards greater outsourcing of Disney cast members, and that could become a worrisome trend imo.

 

[DisneyRoxMySox]

I was all for outsourcing of some backstage jobs such as the IT department and some others with companies that have a better understanding of certain aspects of the business and letting Disney do what Disney knows how to do, but I don't support the outsourcing of jobs that are directly involved with guest interaction. When this happens, they must make sure that these employees follow the Disney guidelines in terms of appearance and attitude towards guests. I don't know who or how many valet/bell people are affected as a percentage of those currently employed resort wide (is this all bell services or a fraction of it?), but obviously this is the step that could lead towards greater outsourcing of Disney cast members, and that could become a worrisome trend imo.

Well stated!!!

However, I really don't agree with this at all. While I was on a DME bus on my last vacation, when we passed the McDonald's near DAK. They driver said, mouse burgers!! Can you imagine, more workers like that! It would be a nightmare.

 

[gsimpson]

I am not fond of outsourcing at all

I disagree that "backstage" job outsourcing is somehow OK but front of house outsourcing is not. This would almost seem to suggest that someone front of house employees are more part of the "Disney" experience than the people that design and maintain the stuff. They did a lot of maintenance out sourcing out in Disneyland to "people who specialize" in such things, and it got them a park that was in a horrible state of repair, some reports go so far as to way that is why their Space Mountain which was built after the ours had to be completely replaced. Outsourcing is handy for the bottom line but negatively effects quality, moral, employee's lives, and in the end the guest experience. If Disney were a small IT shop that could not afford to have top notch IT people I might go along with your statement, but if the only criteria is to find someone that specializes in a particular process then the argument could be made that bus driving should be outsourced to the Orlando Mass Transit people or Greyhound, the housekeeping should be outsourced to Host (owned by Marriot until recently), food and beverage should be oursourced to McDonalds and Outback, bars should be out sourced to Benigans, and so on. Of course to carry this scenario to the unhealthy extreme, ride maintenance and installation should be outsourced to 6 flags, they have far more rides and install more in any year that Disney does. Disney as a rule does not compete on price so I find it fairly reprehensible when they chissle this way. Hopefully the union will not allow this to happen.

 

[CTXRover]

I disagree that "backstage" job outsourcing is somehow OK but front of house outsourcing is not. This would almost seem to suggest that someone front of house employees are more part of the "Disney" experience than the people that design and maintain the stuff.

I just wanted to comment that I be no means meant to suggest that people who work behind the scenes are any less important to the daily operations than those who work "onstage". Even when outsourced, those who work for the company are part of making the Disney experience possible even if though don't wear a Disney name tag. There is no doubt in my mind though that certain aspects of the daily operations of the resort can be outsourced with companies that may be able to do it better and more efficiently (and thus less costly) by companies whose sole purpose is that operation. As you eluded to, there is a fine line though when those changes begin to directly affect the daily guest experience and once that line is crossed it begins to become difficult to determine where to stop. I personally don't know where that line is, but I believe outsourcing the valet/bell services does cross that line.

 

[Ridge]

I was all for outsourcing of some backstage jobs such as the IT department and some others .....

Outsourcing in general has just become a buzzword for hiring cheaper workers, IT, backstage, frontstage or otherwise.

There is a reason why they are cheaper. You get what you pay for, there is no magic about this.

Cheap workers do cheap work. It's not just letting the market forces of supply and demand do their thing. It's putting out a cheaper, inferior product.

 

[cm1988]

So its all about the money

I guess the message here is, if it makes financial sense, it makes WDW a stronger company and a better place for Guests, right?

That's the society in which we live. The dollar rules. Oh, we give lip service otherwise, but actions speak louder than words. We're fine with people being laid off. We're fine with outsourcing. We're fine with benefits erosion... maybe cutting medical benefits will keep the ticket prices from rising so quickly.

Maybe it never did. Maybe cutting benefits and laying off people just earned someone a really nice bonus or a return on a stock investment.

It's a tough mindset switch, away from the ultimate dollar, because that is our security, and it is at the core of the values that our television sets preach every hour, every day.

Surely those paper things we buy our groceries with are more important than the people who plant and harvest our groceries.

The gulls outside of the Living Seas are kind of cute... "Mine! Mine! Mine!" But wow, would you want to listen to that all of the time?

 

[CTXRover]

Cheap workers do cheap work. It's not just letting the market forces of supply and demand do their thing. It's putting out a cheaper, inferior product.

I respectfully disagree that outsourcing automatically produces a cheaper and inferior product. The cost to Disney is likely less, but the end product does not need be of cheaper quality if done more efficiently and effectively by skilled professionals. I don't support an all-out outsourcing of jobs, but I appreciate and understand the business and financial ramifications of such decisions. Disney isn't all pixie dust and magic, but a business responsible for turning a profit and meeting the demands of its shareholders. The concern for me is when does the quest for the all-mighty dollar relate to a lesser product? Regarding some of the outsourcing to date, I personally haven't found that the quality of the product in those fields has suffered or created a negative impact on the guest experience. However, I fear they are getting closer to it having that impact, especially with this current decision. Where do they stop?

 

[niteobsrvr]

I respectfully disagree that outsourcing automatically produces a cheaper and inferior product. The cost to Disney is likely less, but the end product does not need be of cheaper quality if done more efficiently and effectively by skilled professionals. I don't support an all-out outsourcing of jobs, but I appreciate and understand the business and financial ramifications of such decisions. Disney isn't all pixie dust and magic, but a business responsible for turning a profit and meeting the demands of its shareholders. The concern for me is when does the quest for the all-mighty dollar relate to a lesser product? Regarding some of the outsourcing to date, I personally haven't found that the quality of the product in those fields has suffered or created a negative impact on the guest experience. However, I fear they are getting closer to it having that impact, especially with this current decision. Where do they stop?

They stop when the market forces in play allow them to do so. Before everyone screams about their latest profit report, lets not forget we live in a capitalist country. I say good for them for managing their business so well.

In the mean time, if you want more "Disney" employees, be willing to stop expecting discounts, less expensive higher quality food, and admission under $100 per person for children. They have every right to expect to make the same profit as they always have even while he markets change. What is interesting thought is that Americans seem to beleive that they can have their cake and eat it too. Unfortunately, basic economic theory does not support that idea. As costs rise and this used to include wages, prices rise as well but thanks to Walmart-like mentality we expect prices to fall while we keep getting paid more. Its unsustainable in the long run unless businesses begin doing things like outsourcing.

Look where your products come from today. People in those countries don't make $20 per hour. Instead, they are more likey to make a few dollars an hour at best with no benefits like we have here. In the mean time, our prices go down while our jobs are exported.

 

[Epcot82Guy]

There are several things that come up here. I do worry about Disney going out-of-house for front of the line jobs (this is not a reflection on the behind the scenes jobs. They are absolutely as important to the total product; it is just a different approach to training). That is where I think Disney has failed the most recently. First, the CP is an odd duck. Granted, they want as many students as possible, but the training can be (note the CAN) downright terrible. There is a large loss of morale among groups in WDW because of several factors, and it shows in the management. I really wish they would up the standards because students will do what they need to in order to pass. So, up the bottom line (and, before people jump, I am a student currently and a former CPer, so I was there in the trenches).

I also think this extends into the outsourcing. Luckily, if they outsource, they get to write the contracts. That means they can require training programs and training implementations and regulations that they don't have to provide. This could actually make this a successful program. Cheaper doesn't always mean worse if the new provider is better at providing TRAINING AND SERVICE. I agree the current DME drivers can, at times, be overbearing. But, I have found most of them are at least enthusiastic. Therefore, I think guidelines could easily be set with these men and women that may present an even more Disney experience than what we have.

 

[emmersandjack]

I couldn't be more disappointed with this news.

I live in Michigan, where we have the highest unemployment rate in the country-partially due to outsourcing and job cutbacks.
I work in the manufacturing business (I don't want to give it away, but I do drive an Explorer:zipit, and have firsthand seen what happens when jobs are outsourced.

The part I don't understand is the reference to the comparable job bit. Why even hire an outside company then? Where is the money saving? I don't buy it. Somewhere along the way someone somewhere in that long chain is going to lose their job.
Not everyone working at WDW is in fact working there just for fun. while it may be a fun job, for some i am sure it is a necessity.

i am sure that i am a little biased about this subject-heck i even boycott sam's club and walmart. I just don't want to see anyone lose their jobs.

btw, wasn't there an earlier thread saying the disney posted record 3rd quarter profits? if this is the case, why more cost cutting?

i always find myself asking in situations like this-where is the glass ceiling on money? I mean, when is enough, enough?

let's not lose any of the disney magic...

 

[eroyee]

:wave: Hey, emmersandjack: we live in Michigan too and my husband is in the "manufacturing" business also. wont tell where but we drive a Chevy. :zipit: Anyway, I agree with you wholeheartedly on this. My brother lost his job in a small town here cause of outsourcing to China. he has a family to support. what is happening to the Disney "magic."? Same thing happened to my Nascar. Its all about the MONEY. I am really disappointed with Disney. that said, only 20 more days till our next magical trip to the world. woo hoo!!! :xmas: :sohappy:
/

 

[Jheyman]

I respectfully disagree that outsourcing automatically produces a cheaper and inferior product. The cost to Disney is likely less, but the end product does not need be of cheaper quality if done more efficiently and effectively by skilled professionals. I don't support an all-out outsourcing of jobs, but I appreciate and understand the business and financial ramifications of such decisions. Disney isn't all pixie dust and magic, but a business responsible for turning a profit and meeting the demands of its shareholders. The concern for me is when does the quest for the all-mighty dollar relate to a lesser product? Regarding some of the outsourcing to date, I personally haven't found that the quality of the product in those fields has suffered or created a negative impact on the guest experience. However, I fear they are getting closer to it having that impact, especially with this current decision. Where do they stop?

When you talk about outsourcing of IT jobs I personally (and yes lets get what field JHeyman works in ) feel it almost and ill say almost leads to a loss of either security or response time which will then lead to slow downs in business. Think about one person assigned to a job now outsource that job and that person is either at a remote help desk miles away or responsible for that job today but tomorrow they have to go to universal and do the same job. Maybe that means I forget to do some updates today because "they can wait" or your 4 hour response for on sight assistance goes to one day response. None of those are a good option. Overall in this move I would like to hear the motivation for such a move, perhaps there is a good reason but I don't see how this can help anyone including TWDC.

 

[wedway71]

My question is why 167?-Isnt there more bellhops and valet cms at WDW?
Are thy going to just replace certain Resort areas and leave others?
And will they have the same appearance guidlines at WDW cms?

 

[mkt]

My question is why 167?-Isnt there more bellhops and valet cms at WDW?

There are. I'm guessing it's only for certain resorts *cough*POP CENTURY*cough*ALL STARS*

Are thy going to just replace certain Resort areas and leave others?

that's my guess (see previous reply)

And will they have the same appearance guidlines at WDW cms?

I believe that all operating participant CM's are required to abide by the Disney Look

 

[mkt]

My reply to this. I was outsourced from my last job, and it stunk for me. I'm back on my feet now, and having seen the results from a quality perspective, I'm saddened what the website I spent 3 months working on looks like now.

The quality will deteriorate. I know it

 

[wedway71]

There are. I'm guessing it's only for certain resorts *cough*POP CENTURY*cough*ALL STARS*



that's my guess (see previous reply)



I believe that all operating participant CM's are required to abide by the Disney Look

Thanks for the info.I kinda thought that the outside companys had to go by the Disney look but wasnt sure-hate to walk up to Pop Century and have my Bell Hop have a purple mohawk and nose ring-lol

 

[Tim G]

My reply to this. I was outsourced from my last job, and it stunk for me. I'm back on my feet now, and having seen the results from a quality perspective, I'm saddened what the website I spent 3 months working on looks like now.

The quality will deteriorate. I know it

This is what I exepected from the board of directors... and their chairman

I wouldn't be surprised if more unpleasant things will happen... :lookaroun

 

[napnet]

My reply to this. I was outsourced from my last job, and it stunk for me. I'm back on my feet now, and having seen the results from a quality perspective, I'm saddened what the website I spent 3 months working on looks like now.

The quality will deteriorate. I know it

Outsourcing, especially in IT, is especially bad, who wants to call Dell Support in India? Not me!

 

[DisneyRoxMySox]

This is what I exepected from the board of directors... and their chairman

I wouldn't be surprised if more unpleasant things will happen... :lookaroun

Is there even a economic benefit to this?