Disney, unions reach tentative pact, avoiding strike at Disneyland
Adds background, Disney share price paragraphs 3, 6, 9
By Dawn Chmielewski
ANAHEIM, California, July 24 (Reuters) -Unions representing 14,000 Disneyland employees said on Wednesday they had reached a tentative labor agreement with Walt Disney CoDIS.N, averting a work stoppage at the California themepark.
The new, three-year agreement, which includes wage increases and other benefits for park employees, whom Disney calls"cast members," was signed by an alliance of unions representing custodians, ride operators, merchandise clerks and other workers at the Disneyland Resort in Anaheim, in Southern California.
A ratification vote on the proposed contract is scheduled for Monday.
"Cast members have fought hard for the past four months and this tentative agreement would not have been possible without the strength we all showed throughout this process and the unwavering support from guests and community members," the unions said in a statement.
Disney confirmed the tentative deal in a statement to Reuters: "We care deeply about the wellbeing of our cast members ... and are pleased to have reached a tentative agreement with the Master Services council that addresses what matters most to our cast."
Last week, workers protested outside Disneyland with signs saying, "Mickey Would Want Fair Pay!"
Unionmembers had voted overwhelmingly on Friday to authorize a strike if an agreementcould not be reached.
“We have shown Disney that we are the true magic makers of the park and today proves that when workers stand together for what they deserve, we win," the unions said in a joint statement.
Disney shares fell 1.4% in afternoon trading on the New York Stock Exchange at $89.65 amid a broad downturn in stocks. The Dow Jones Industrial Average was trading down about 1% and the Nasdaq dropped 3%.
Reporting by Dawn Chmielewski in Los Angeles;
Additional reporting by Lisa Richwine;
Editing by Bernadette Baum and Leslie Adler
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