Disney’s (NYSE: DIS) Disneyland workers have secured a 31% wage increase in a landmark achievement, marking the largest pay raise in the history of the Anaheim theme park. This significant development follows a credible strike threat.

The new contract, ratified by Teamsters Local 495, impacts over 14,000 Disney employees and elevates the minimum hourly wage to $24 this year, with most workers seeing a $6.10/hour increase.

The agreement, lauded as “historic” by both Disneyland officials and union representatives, comes after four months of intense negotiations. The Master Services Council, representing workers across Disneyland, Disney California Adventure, and Downtown Disney, announced the ratification on July 29, noting the overwhelming support from union members.

Disneyland officials expressed their satisfaction with the outcome, highlighting the company’s commitment to its employees’ welfare. “We are pleased that our cast members approved the new agreements, which, along with all we offer as part of our employment experience, demonstrate how much we value and respect them and our profound commitment to their overall well-being,” Disneyland officials stated.

The new contracts will see hourly wages increase from the current $19.90 to $24 in 2024 and $26 by 2026. Long-term employees will also benefit, receiving an additional 50-cent increase for 10 years of service and a $2 increase for 20 years of service. Additionally, current employees will receive back pay at the new rate from June 17, while new hires will earn 90% of the new rate for their first year.

The unions have been negotiating with Disney since April, advocating for the rights of ride operators, store clerks, custodians, candy makers, ticket takers, parking attendants, tram drivers, and other cast members.

The successful negotiation has been celebrated widely, with Disneyland Workers Rising, a coalition representing the employees, noting the profound impact on workers’ lives. “These contracts are historic for Disney cast members and we’re pleased cast members’ lives will improve as a result,” the coalition said in a statement.

Social media has been abuzz with reactions to the news. More Perfect Union, a progressive media organization, tweeted, “14,000 Disneyland workers just won a 31% raise after threatening to strike. It’s their biggest ever wage increase.”

Despite the celebratory tone, some have questioned why such a significant increase wasn’t implemented sooner, especially given Disney’s substantial financial resources. The successful strike threat, however, has underscored the power of collective bargaining and worker solidarity.

The new contracts, which take immediate effect, promise to enhance financial stability and mental well-being for Disneyland workers and to possibly set a precedent for labor negotiations within the entertainment industry.

Information for this story was found via The Orange County Register and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.