Disney World to remove 43,000 union workers due to coronavirus pandemic

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DIS), the Walt Disney World Resort subsidiary, is expected to commission 43,000 union workers from April 19 due to the new coronavirus pandemic (COVID-19), CNBC reported Sunday. “Data-reactid =” 19 “> The Walt Disney Company (NYSE: DIS), the Walt Disney World Resort subsidiary, is expected to commission 43,000 union workers from April 19 due to the new coronavirus pandemic (COVID-19), CNBC reported on Sunday.

What happened

agreement with the Disney World Workers’ Service Trades Council Union. “Data-reactid =” 21 “> This decision comes after the company signed an agreement with the Disney World Workers Trades Council Union of Workers.

Under the agreement, Disney World will continue to cover the full cost of health insurance for workers currently insured for the duration of the leave for up to 12 months. Workers will not be required to reimburse costs after they return to work.

“We are pleased to have entered into an agreement with the Service Trades Council Union which will maintain coverage for member health insurance benefits, educational support and additional employee assistance programs during a period of temporary leave from April 19, “Walt Disney said in a statement to CNBC.

“This agreement allows for an easier return to work when our community recovers from the impact of COVID-19. We are grateful to have worked together in good faith to help our Cast Members weather these unprecedented times. “

Disney told CNBC that about 200 workers would continue to work to maintain basic operations during the lockout. All Disney theme parks around the world are closed to stop the spread of the coronavirus.

Why is it important

he was on leave from some of the non-unionized workers and would no longer receive payment for his annual passes. “Data-reactid =” 27 “> Earlier this month, Disney announced that it would put some of the non-union workers on leave and would stop receiving pay for their annual packages. past.

Theme parks represent a significant share of Disney’s revenues, with the Parks, Experiences and Products subsidiary representing 37% of the company’s revenues in 2019 at $ 69.6 billion, according to CNBC.

Disney is not the only company to take extreme measures to minimize costs during the pandemic, as businesses in all sectors are also affected.

TUE) and Seaworld Entertainment Inc. (NYSE: MER) previously announced that it will lay off a majority of its employees. “Data-reactid =” 30 “>Marriott International Inc. (NASDAQ: MAR) and Seaworld Entertainment Inc. (NYSE: SEAS) previously announced that it will lay off a majority of its employees.

Price action

Disney shares closed 3.4% higher at $ 104.5 Thursday. The shares were still traded 0.1% to $ 105.5 during the after-hours session.

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