Most Walt Disney World Cast Members to receive $1000 cash bonus and company launches new $50 million higher education program

Jan 23, 2018 in "The Walt Disney Company"

Posted: Tuesday January 23, 2018 2:46pm ET by WDWMAGIC Staff

Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company, today announced that more than 125,000 eligible employees will receive a one-time $1,000 cash bonus. The Company will also make an initial investment of $50 million in a new and ongoing education program specifically designed to cover tuition costs for hourly employees.

The two new initiatives represent a total allocation of more than $175 million in this fiscal year.

“I am proud we are directing approximately $125 million to our cast members and employees across the country and making higher education more accessible with the launch of this new program,” Mr. Iger said. “I have always believed that education is the key to opportunity; it opens doors and creates new possibilities. Matched with the $1,000 cash bonus, these initiatives will have both an immediate and long-term positive impact.”

All full and part-time non-executive employees, either hourly or salaried, who have been with The Walt Disney Company since January 1, 2018, and are based in the United States will be paid a one-time $1,000 cash bonus. Employees will receive the bonus in two payments, the first in March and the second in September of this year. In keeping with applicable federal law, the Company will work with union representatives regarding potential distribution plans for employees currently working under existing union contracts.

The Company is also launching a new education initiative aimed at its hourly workforce in the United States. Nearly 88,000 hourly employees will be eligible and can utilize the program to make an impactful investment in their future. With this new plan, participants can pursue qualifying higher education or vocational training, including courses unrelated to their current responsibilities at Disney. By creating new opportunities for those who wish to continue their education, employees can advance in their current roles or support their long-term career aspirations. After the initial investment of $50 million, Disney will provide up to $25 million in annual funding going forward.

The Company’s current educational reimbursement program, which is open to all full-time employees, will continue and remain unchanged.

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FireChiefGoofyFeb 21, 2018

This bonus is a result of the Trump tax cut. A letter was sent out by Bob Iger stating all 125,000 CMs get it. Now Disney is changing the terms by tacking it onto the proposal that was voted down by 93% of the Members. We are only asking for $0.03 of each ticket sold. From what they made from Black Panther this weekend, they could’ve given us what we asked for and had money left over. Disney’s tax savings from the new plan infuse just about $2,000,000,000 back into the company.

Gitson ShigglesFeb 20, 2018

The spirit of Walt lives!

21stampsFeb 20, 2018

I can see why this would be unpopular with the public, but it does make sense. Why would you pay a bonus to a group who has been unwilling to accept any terms of negotiations so far? They keep threatening to strike. Giving the bonus an expiration date is probably needed here, and is quite logical.

Darkbeer1Feb 20, 2018

How many Bus Drivers have applied for the jobs? If Disney has enough folks to accept the current offer, well, that is business, and they can tell the union fine. If you won't accept the deal, we will no longer need the services of any of your members. Then the drivers can go apply at the airport, the city bus system, Universal, etc.

FireChiefGoofyFeb 19, 2018

Nope

21stampsFeb 19, 2018

Thanks for sharing. Will the union accept the 50 cent raise?

FireChiefGoofyFeb 19, 2018

This just in! As you may know the 38,000 union CMs here at WDW are currently in wage negotiations. Today (2/19/18) the company offered us a 50¢ Increase and the $1000 “bonus” as part of the wage negotiations. If we do not ratify this offer by 8/31/18 the $1000 bonus offered to us will expire. The unions have filed an unfair labor practice. This bonus was billed to us and you the public as a result of the tax savings Disney was receiving. We know know it was all smoke and mirrors to the some of the hardest working CMs. Thank you. Your friendly Disney bus driver!

Darkbeer1Jan 27, 2018

That is for 2017 income, I presume, not the new 2018 tax laws. So married with one child. I presume all are US Citizens. No other income, special credits, etc. At $30,000, the couple owes no tax, and would qualify for refundable Child Tax Credits. ($525) At $31,000, the couple owes no tax, and would qualify for refundable Child Tax Credits. ($675) Yes, an EXTRA $150 At $40,000, the couple owes no tax. At $41,000, the couple owes no tax. https://www.calcxml.com/calculators/trump-tax-reform-calculator As stated earlier, the Federal Withholding ($220) would be returned when the 2019 return was filed, plus the possibility of getting the 7.65% SS/Medicare tax refunded in the Child Tax Credit. Let's look at a Single person without kids. At $30,000, Fed Taxes owed are $1,970 before withholding At $31,000, Fed Taxes owed are $2,090 before withholding, so an extra $120, leaving $100 to be refunded in 2019. At $40,000, Fed Taxes owed are $3,170 before withholding At $41,000, Fed Taxes owed are $3,290 before withholding, so an extra $120, leaving $100 to be refunded in 2019. Plus, the EITC charts are not out, but the Married couple with one child would qualify for the additional refundable amount to just under $41,000. More kids, more EITC. Single parents (Head of Household) would also get back some. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/eitc-income-limits-maximum-credit-amounts-next-year As stated earlier, every person's tax situation is different. Some workers might qualify to be a dependent on someone else's return if they work part-time, such as a college student just working the summer, so this wouldn't apply to them.

tractor tipperJan 26, 2018

I ran a what if 1040 for a family of three making 30K and 40K. The 1000 bonus increased their Fed. tax $175 leaving $875 from the bonus, for non FL CMs it will be different

rael ramoneJan 26, 2018

The funds to pay 'a couple of extra dollars per hour' didn't appear with the various Tax adjustments. It's built into the price that guests pay for tickets, food, rooms, merch, etc. When a salary doesn't adequately compensate for work performed (specifically, when the work performed is more than worthy of a living wage and a living wage isn't paid), there is nothing 'generous' about fixing that when the funds are present to do so, even when such fix would be a significant jump in rate. It's the right thing to do. I believe it is also good business to do so. It will improve the work output of CM's, giving guests who have paid a lot of money to be there a better experience. Many CM's are fans, and will spend more in the parks. But also, since $DIS is such a HUGE employer in Central Florida, a pay boost would force the entire region to bump up their compensation to compete, giving the local population more money to spend on your product. And it's that local population that is going to be a backstop for the business, if airfare becomes prohibitively expensive, or the act of flying becomes more unpleasant due to overcrowding planes and more aggressive security, or the cost of a WDW vacation becomes more unfavorable vs. a cost of an overseas vacation... As I've said before, I think the potential of the Corporate Tax Cut being repealed (and then some, there was a drumbeat from some to RAISE the Corporate rate) will encourage companies to 'prove they can be trusted' with these extra funds by doing more meaningful compensation increases. It's like a couple of parents who have a teenager who wants a car. One thinks the kid should have a car, the other doesn't. The kid asks the parent who gave them the answer they wanted to hear and that parent gave them a car. But the other parent WILL eventually have their say in the matter, and the kid (hopefully should) know this. The kid is going to have to prove to the other parent that it was a good idea after all by how they use the car...

rael ramoneJan 26, 2018

The Corporate Tax adjustment has two major effects for multinational corporations. 1. The short-term repatriation rate to encourage money being held overseas to return to the U.S. to be able to be used in the U.S. for various purposes. A surge. 2. The reduction of the corporate rate, which is meant to be permanent. So it is fully appropriate to do BOTH, a bonus (credited to repatriation), and a pay increase (credited to the lower tax rate).

21stampsJan 26, 2018

“A couple extra dollars per hour” is not what a raise is to a company though. It’s millions and/or billions of dollars. I don’t know many people who’s salaries grow “generously” every year. Especially not in the increments that you’re talking about.

rael ramoneJan 26, 2018

The Corporate Tax has two major effects for multinational corporations. 1. The short-term repatriation rate to encourage money being held overseas to return to the U.S. to be able to be used in the U.S. for various purposes. A surge. 2. The reduction of the corporate rate, which is meant to be permanent. So it is fully appropriate to do BOTH, a bonus (credited to repatriation), and a pay increase (credited to the lower tax rate).

Nubs70Jan 26, 2018

The long term is for people owe to themselves to live within their means.