Disney trades 25% higher starting wage and 401(k) style match for pension

Posted Saturday, April 19, 2014 9:57 AM | Contributed by rollergator

Walt Disney Co. has offered to raise starting pay at its Florida theme parks by 25 percent to $10 an hour over two years. Disney also told the unions it wants to stop offering pensions to new hourly employees starting in 2016. New hires would be offered a 3 percent company match to a 401(k)-style retirement plan.

Read more from Bloomberg.

Saturday, April 19, 2014 12:54 PM
LostKause's avatar

Great news! Disney has been well-known for not paying very well.

Saturday, April 19, 2014 3:57 PM
Jeff's avatar

Do we need to have that discussion again? I think this is a crazy good deal for the workforce, but I'm not sure if it makes much sense for the business. I still say that if people are willing to blow pixie dust up people's bums for $8/hr., that's what they should pay. :)

Jeff - Webmaster/Editor - CoasterBuzz.com - My Blog - Twitter - Video

Saturday, April 19, 2014 4:39 PM

I think it makes a lot of sense on a long term basis for Disney. Pension costs have a way of growing exponentially with pay increases and increases in life expectancies in ways that are often difficult to predict and, even more troublesome for companies, to control. Vast majority of private employers moved to 401(k)s decades ago. At this point, its pretty much private unions and government folks who have pensions. I have long advocated that governments should freeze current pensions and move everyone forward with 401(k)s. Increase in current pay is just the price Disney needs to pay to get the better long term deal for the company.

On a related note, I would like to see employers discontinue providing health insurance, increase salaries and let people get their own coverage. Having health coverage tied to a job doesn't make any sense. And we can avoid the entire birth control debate that exists today. Though most importantly, that approach will help to create incentives for medical costs to decline (or at least for the rate of growth to slow). Another good thing in the long run.

Saturday, April 19, 2014 7:54 PM
slithernoggin's avatar

^Yep. Health insurance tied to a job is a contributing factor to how much health insurance costs.

Time flies like an arrow. Fruit flies like a banana.
-- Groucho Marx

Sunday, April 20, 2014 10:59 PM

Jeff said:
I still say that if people are willing to blow pixie dust up people's bums for $8/hr.,
that's what they should pay. :)

That's a pretty good deal for a pixie dust-bum-blowjob. I usually have to pay at least twenty...

My author website: mgrantroberts.com

Wednesday, April 23, 2014 2:21 PM

Ensign Louise Smith!!! This is a family site you know :-).

Last edited by delan, Wednesday, April 23, 2014 2:21 PM

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