Disney Offers to Raise Minimum Wage at Walt Disney World over the Next Two Years

In an effort to match the federal minimum wage sought by President Barack Obama, the Walt Disney Company has offered to increase pay for workers at the Walt Disney World Resort by 25 percent over the next two years

This increase would take the minimum wage rate for hourly Walt Disney World Resort employees to $10 an hour.

The increase proposal was presented to the Service Trades Council, a consortium of six unions that represents more than 30,000 employees at Walt Disney World. The unions had asked for $10.10 an hour, which is the same amount Democrats in Congress and the President are proposing as the new minimum wage.

The unions and Disney are expected to resume contract negotiations at the end of May. Currently, hourly employees at Walt Disney World make $8.03 an hour. The new rate would be reached in July 2016.

In related contract news, Disney reportedly wants to stop offering pensions to new hourly employees beginning in 2016 and would instead offer new hourly employees a 3 percent company match to a 401(k) type plan. The unions are planning to oppose that change.

The Walt Disney Company has reported a profit of $6.6 billion last year and the company's stock has gained 32 percent over the last year. The Parks and Resorts division is the second-largest division in the company and generated an operating income of $2.22 billion last year.

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