Walt Disney World Reaches Tentative Agreement with Unions

Walt Disney World has reached a tentative labor agreement with its largest union group.

The agreement raises the minimum hourly rate for full-time employees to $10 by 2016. The hourly rate will increase to $9.50 next year.

The contract covers the 21,000 full-time workers represented by the Services Trade Council, a coalition of six unions.

Under the new contract the company's pension for new hires will remain in place. Disney had wanted to eliminate the pension and replace it with a 401(k) plan with a 3 percent company match.

The new contract will also freeze health insurance costs for employees in 2015 and will provide a cap for any future cost increases.

While four of the six Services Trade Council unions approved the contract, the Teamsters and the International Alliance of Theatrical & Stage Employees voted against it. Workers will have a chance to vote on the contract on August 1.

The main issue of contention with the two unions who rejected the contract is the elimination of percentage wage increases. The workers who are above minimum rates will now receive a 50 cent per hour increase for the next three years.

If the contract is approved it will cover every full-time employee covered by the six unions and will last for five and a half years.

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