Lawsuit Against Disney Granted Class-Action Status – Inside the Magic

Credit: Adventures Of Disney

Disneyland can be considered the happiest place in the world for those lucky enough to walk through its gates. There always seems to be magic in the air and the feeling that nothing bad could ever happen there. Unfortunately, that feeling of happiness doesn’t always apply to all cast members, many of whom feel Disney isn’t paying them enough to create the magical moments that guests expect.

Guests watch Disneyland fireworksCredit: Disney Rewards

About a year and a half ago, Disney employees filed a lawsuit against the company claiming Disney was not paying its employees a living wage. The lawsuit began with five former workers, but that number has now increased – although the exact number is not disclosed, lawyers representing the workers claim it runs into the thousands.

The suit is made up of not only former Disney employees, but also employees from Sodexo and SodexoMagic, a company that operates restaurants and cafes across the Disneyland Resort.

Starbucks at Disney California AdventurePhoto credit: ITM

In a recent article, the Los Angeles Times reported:

Attorney Randy Renick, who represents the workers, said Monday he could not say exactly how many employees the class included, but he figured it was thousands.

“I think the problems here are simple: voters wanted companies like Disney that take public handouts to pay their workers a living wage,” Renick said. “Disney shouldn’t get a passport.”

Voters approved Measure L in 2018, which obliges resort companies that receive a city grant to pay at least $ 15 an hour. According to the regulation, the minimum will increase by $ 1 an hour each year until 2022 when it reaches $ 18. The increases are then based on the cost of living index.

Disneyland Resort castPhoto credit: Disney

According to the lawsuit, the City of Anaheim is using Disney taxpayers’ money to pay off the construction loans Disney paid for the Mickey and Friends parking garage at Disneyland Resort. That means Disney doesn’t actually pay its taxes; Instead, it pays taxes that settle other bills owed by the company.

Mickey and Friends parking lotPhoto credit: Disney Wiki Fandom

Mickey and Friends’ park structure has long been a point of contention for the city of Anaheim, which paid over $ 100 million to build the property and Disney secured a $ 1 a year lease from the city. Disney, on the other hand, is now charging at least $ 25 per car – extra for preferred parking lots and larger vehicles. Disney is allowed to keep all profits from the parking garage.

Disneyland parking lotPhoto credit: Disney

A measure called Measure L was passed in Anaheim in 2018 and states that companies that receive tax subsidies from the city must pay their employees a living wage. The lawsuit alleges Disney kept the profits it made from the parking garage and failed to pay the necessary living expenses while the company let the City of Anaheim pay for the parking garage. Disney claims that Mickey and Friends’ park structure is not a subsidy.

Disney Adventure DisneylandCredit: Adventures Of Disney

According to the LA Times:

In a February 2018 report, Disneyland employees cited high incidents of homelessness, low wages and food insecurity. The report was prepared by researchers from Occidental College and the Los Angeles-based Economic Roundtable for the Coalition of Resort Labor Unions.

According to the Coalition of Resort Labor Unions, more than 85% of union workers in Disneyland were making less than $ 15 an hour at the time of the 2018 report, which was released before Measure L was approved.

Disney Adventure DisneylandCredit: Adventures Of Disney

In 2018, the Walt Disney Company made just over $ 59 billion. It made just under $ 70 billion in 2019 and just under $ 65 billion in 2020, which is still an impressive amount considering the amusement parks and numerous film productions had to close for an extended period due to the pandemic.

This isn’t the first time Disney has been accused of not paying its workers a living wage. Abigail Disney, Walt Disney’s great-niece, has often spoken out against Disney taking advantage of cast members in her opinion. Performers – current and former – have also agreed, recently protesting corporate greed outside Disneyland.

Quinjet on the Avengers campus at Disney California AdventureCredit: Inside the Magic

At this point in time, Disney has not made a public comment on the progress of the lawsuit, but larger companies like Disney typically make a habit of not commenting on pending litigation. Further information such as mediation or negotiation dates are currently not known.

Do you think Disney pays its employees a fair, living wage? Let us know in the comments!

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