Thousands of Disney workers are expected to demonstrate for a fair contract on Wednesday, as negotiations continue with the entertainment conglomerate in the face of soaring profits.
The Service Trades Council Union (STCU) that represents over 29,000 Disney workers, has been locked in negotiations with Disney management for close to nine months, as it seeks fair wage increases and affordable health insurance. Last October, STCU rejected Disney’s current offer and since then the company has held the same offer indicating it is “fair and competitive”.
Meanwhile, Disney on Tuesday, reported 54 percent higher profit than the year-ago quarter and 10 percent higher revenue, greatly exceeding expectations of Wall Street analysts. Sales came in at $10.7 billion, up from $9.74 billion one year ago.
Walt Disney Company Chief Executive Officer, Bob Iger told CNBC, that the higher than expected profit was in large measure due to a hefty rise in advertising sales at its ESPN cable sports channels and a strong showing from its parks and resorts division. Iger said he is “optimistic that consumer spending and an advertising rebound are gaining momentum.”
Despite the higher than anticipated increase in profits however, it is the same hardworking cast members at the parks and resorts at the Walt Disney World Resort that are now being denied a fair wage and affordable health care.
Iger was recently awarded a pay increase of 35 percent which saw his salary jump to $16 million in 2010 from $12 million the year before, bringing his total compensation to $28 million.
The rally on Wednesday, February 9, at the intersection of SR 535 & Hotel Plaza Boulevard, is intended to draw attention to the ongoing struggle with Disney for a fair contract, just before negotiations resume on Friday, February 11, STCU said in a statement.
