News Reedy Creek Improvement District and the Central Florida Tourism Oversight District

[GoofGoof]

So I guess we will see the first court room action pretty soon in this conflict:

Approval of legislative findings regarding and declare the February 8, 2023 Development Agreement and Declaration of Restrictive Covenants entered into by the Reedy Creek Improvement District and Walt Disney Parks and Resorts U.S., Inc. void and unenforceable and direction to litigation counsel to commence litigation as needed to have such instruments declared void and unenforceable, prohibit the enforcement of the same, to have such instruments terminated or stricken from the public records of Orange and Osceola Counties and to assert these legislative findings and seek remedies regarding the same.

They are directing their outside counsel to start litigation to void the contract.

 

[GoofGoof]

I feel like the parks are barely getting hit by these layoffs, wasn't that the plan?

I didn’t think staffing was 100% back from Covid yet so still hiring.

 

[CaptainAmerica]

I feel like the parks are barely getting hit by these layoffs, wasn't that the plan?

These are cubicle layoffs, not costume layoffs.

So people who work in the Parks, Experiences, & Products segment will be impacted. But not people who work INSIDE the parks in guest-facing roles.

 

[kong1802]

So I guess we will see the first court room action pretty soon in this conflict:

Approval of legislative findings regarding and declare the February 8, 2023 Development Agreement and Declaration of Restrictive Covenants entered into by the Reedy Creek Improvement District and Walt Disney Parks and Resorts U.S., Inc. void and unenforceable and direction to litigation counsel to commence litigation as needed to have such instruments declared void and unenforceable, prohibit the enforcement of the same, to have such instruments terminated or stricken from the public records of Orange and Osceola Counties and to assert these legislative findings and seek remedies regarding the same.

They are directing their outside counsel to start litigation to void the contract.

Disney's legal team:

 

[mkt]

But not people who work INSIDE the parks in guest-facing roles.

Nope. Based on chats with CM's, they're just getting termed for any violations of rules that were previously not as strictly enforced.

 

[CaptainAmerica]

Nope. Based on chats with CM's, they're just getting termed for any violations of rules that were previously not as strictly enforced.

Good.

That's not a layoff.

 

[mkt]

Good.

That's not a layoff.

Nope, but if they're cleaning house through other methods, it all adds to the savings.

 

[CaptainAmerica]

Nope, but if they're cleaning house through other methods, it all adds to the savings.

I haven't seen any indication that they want to cut back on headcount in frontline roles. My assumption is that if there are frontline full-timers getting termed for cause that they'll be backfilled. Now maybe they'll be backfilled with part-timers, seasonals, CPs, and the like, but I don't think their hours go away.

 

[mkt]

I haven't seen any indication that they want to cut back on headcount in frontline roles. My assumption is that if there are frontline full-timers getting termed for cause that they'll be backfilled. Now maybe they'll be backfilled with part-timers, seasonals, CPs, and the like, but I don't think their hours go away.

Oh, absolutely. Or replace high seniority hourly frontline CMs earning higher wages with new hires that earn lower salaries.

In my experience, Disney's done this before, usually coinciding with other cost reductions.

 

[peter11435]

I haven't seen any indication that they want to cut back on headcount in frontline roles. My assumption is that if there are frontline full-timers getting termed for cause that they'll be backfilled. Now maybe they'll be backfilled with part-timers, seasonals, CPs, and the like, but I don't think their hours go away.

This is correct.

 

[CaptainAmerica]

Oh, absolutely. Or replace high seniority hourly frontline CMs earning higher wages with new hires that earn lower salaries.

In my experience, Disney's done this before, usually coinciding with other cost reductions.

This is correct.

Just to add... if anything, we've seen small, incremental changes that show that frontline operations are still in post-COVID expansion mode. Things like breakfast coming back to Garden Grill, cultural representatives back and Animal Kingdom Lodge, operating hours for resort QS locations slowly expanding, daily housekeeping returning to Deluxe resorts, etc.

 

[Vegas Disney Fan]

Oh, absolutely. Or replace high seniority hourly frontline CMs earning higher wages with new hires that earn lower salaries.

In my experience, Disney's done this before, usually coinciding with other cost reductions.

Are there high seniority front line CMs that make more than the new union wage?

With wages going up so fast I’d be surprised if people who’ve been there a decade make a penny more than the people who started yesterday. Normally that’s a source of frustration but in this case it may be a positive and prevent the senior staff from getting hit with lay offs

 

[Disstevefan1]

I am still confused that there are both union and non union workers working the same job side by side.

 

[CaptainAmerica]

I am still confused that there are both union and non union workers working the same job side by side.

It's called an "open shop" (as opposed to a closed shop) and it's the law in 27 states. You can't force someone to join a union as a condition of employment.

 

[tissandtully]

Imagine the heads exploding if he was negotiating a developer’s agreement between the CFTOD and the OLC…

I would definitely be very conflicted.

 

[Brian]

I am still confused that there are both union and non union workers working the same job side by side.

The collective bargaining agreement for most front line roles at WDW specifically include Full-Time and Casual Regular (Part-Time) CMs. If you work in a unionized role, such as Attractions Host/Hostess or Merchandise Host/Hostess, you are considered part of a unionized role. You have the option in Florida of joining the union as a member, but are not required to do so, as Florida is a "right to work" state, unlike California where one must join the union as a condition of employment if hired into a unionized role.

The only time you'll see a non-union CM working beside union CMs in the same role (such as Attractions H/H) would be in the case of casual temporary (seasonal) vs part-time or full-time, as CTs are not covered by the CBA. You see this a lot with DCP kids (who are considered CT) and their CR/FT coworkers.

 

[lazyboy97o]

Reading quickly through the legislative findings just published, a few things stick out.

There does not seem to be a single reference to the original charter.

They really are trying to retroactively apply HB 9B. They’re also trying to add non-existent limitations on actions to the now repealed dissolution.

 

[mkt]

I am still confused that there are both union and non union workers working the same job side by side.

That's par for the course for union employers in a right-to-work state.

 

[Lilofan]

I am still confused that there are both union and non union workers working the same job side by side.

Not mandatory to join the union. Whatever the result of the approved contract all get same raise on the team. Only 5% of workers in South are unionized.

 

[LAKid53]

It's called an "open shop" (as opposed to a closed shop) and it's the law in 27 states. You can't force someone to join a union as a condition of employment.

Bingo