Disney plans to outsource cleaning work to contractors

[crazy4wdw]

Disney to eliminate 125 jobs
The resort plans to outsource cleaning work to contractors.

Scott Powers | Sentinel Staff Writer
Posted September 29, 2006

Walt Disney World is planning to cut 125 cleaning positions and turn those jobs over to contractors, but the current workers might not give up without a fight.

The jobs include kitchen cleaning, carpet cleaning, roadway cleaning and deep cleaning work. Many are in Walt Disney World theme parks, though some are in other public areas, such as Downtown Disney.

The company is promising all the affected workers that they'll be offered other jobs at comparable pay and hours. And company spokeswoman Jacquee Polak expressed confidence that Disney World, with 58,000 positions in a Central Florida market with a very low unemployment rate, should be able to do so easily.

Most of the positions being cut have a base starting pay of $6.90 an hour, which is Disney's minimum wage. Many of the cleaning jobs are on the overnight shift, and also include a $1-per-hour incentive pay.

Polak said Disney was looking for contractors who could meet their work standards.

When asked why Disney was outsourcing, Polak said, "We're continuing to look for new ways to streamline the operation and looking for more ways to be effective and efficient in running our business, and at the same time maintaining the high standards we have set for guest services and general operations."

She said Disney would work with the union. However a union official said there were no talks yet, and the union considered the move "outrageous."

Morty Miller, president of UNITE HERE! Local 362, which represents the cleaning staff, said the union expects to protest and perhaps file an unfair labor practice complaint with the National Labor Relations Board. He said he's worried that the new jobs offered his members might not measure up in terms of pay and hours. He's also worried that the jobs brought in by outside cleaning contractors could erode the pay, benefits and quality standards expected at Disney World.

"This issue of the erosion of decent, benefits-paying jobs is very serious for us," Miller said.

Last year, Disney subcontracted 180 custodial jobs in its hotels, and Local 362 filed an unfair labor practice charge, which is still pending.

 

[Peter Pirate 2]

For a guy who really wanted Iger to have his shot I now say be careful what you wish for.

Iger, for all of his communication skills, easy demeanor and business accumen seems poised to undermine the 'magical Disney' in ways far greater than Michael Eisner, IMO.

Eisner may not have been imagineer material but at least he thought he was creative. Iger isn't, doesn't think so, doesn't care. We always knew where Eisner was coming from. Iger, not so much.

His decisions thus far have been sound, some could even laud him for the direction in many areas, decentralization of decision making for instance. But what's worrisome, as pointed out here, is the apparant adoption of the total corporate culture by Disney in the name of "streamlining". But all it really means is dollars and cents. Further, it's not a 'magical' arena we're talking about yet does anyone think outside vendors will be able to approach the level of Cast Memeber magic we all recall?

Every decision by Disney lately is bottom line oriented and none of them seem to treat creativity of any sort with any respect. I was worried about Disney when the Comcast offer came about but we had Eisner and his big stick (ego) to get in the way. With Iger I fear Disney may well become just another succesful conglomerate, instead of Disney.

 

[raidermatt]

With Iger I fear Disney may well become just another succesful conglomerate, instead of Disney.

Honestly, I really think that's already the case. Much of what we could point to as being more than that are leftovers that haven't been erased yet.

Your culture comment is key. I see no real attempt by Iger to change the culture. He just has a different way of implementing it. I don't really see him as being worse than Eisner, its just that the train Eisner started is moving along very well, and it'll take far more than somebody "not as bad" to actually slow and even reverse that process.

I do see your point though about Iger's calm and business-like demeanor masking what is really happening for those who were so focused on Eisner's obvious shortcomings.

 

[DVCconvert]

Iger, for all of his communication skills, easy demeanor and business accumen seems poised to undermine the 'magical Disney' in ways far greater than Michael Eisner, IMO.

and you're basing all this on the fact that 125 out of 58,000 employees are being outsourced???????

 

[doubletrouble_vb]

I have to wonder if the cleaning staff will actually do better dollar-wise by Disney terminating their jobs. They have no reason to go over to the contractor at their same wages and I would have to imagine they were working for Disney because of the benefits, not the wages....$6.90 an hour? with a $1 differential? I'd imagine people who'd been there longer made more but I think this decision may come back and bite disney if the contractors can't keep the wages down.

 

[Peter Pirate 2]

Matt, it's nice to be close to the same side of the fence with another old timer but alas you've noticed it's the humble Pirate who's opinion has altered, no doubt.

doubletrouble, I understand the reasoning and see the possibility (it's basically the same decision for service outsourcing everywhere) but the fact is the jobs that have been outsourced thus far have resulted (IMO) in less magical output. Landscapers in many areas of WDW, for example, are now outsourced and you can see the difference in those areas and this is only a performance evaluation. Hotel cleaning staff is certainly a low end of the totum pole job but if the Disney touch is no longer an important aspect for Disney workers what chance of that old CM magic being maintained is there? It's just another very small piece of the puzzle (again, IMO). At what level does the snipping end? I'm now concerned that it doesn't end if the bottom line can be improved.

 

[doubletrouble_vb]

Oh I wasnt suggesting that general cleaning service might be improved. Quite the contrary. I think that the staff will take their Disney resumes and get hired on elsewhere.

In a different employment environment I could see Disney's decisions making sense. But in that area they are pretty much in a low to zero unemployment environment. For all cleaning services it will probably be "cheaper to keep her" in all instances. I'm a little surprised Disney doesn't see it that way since cleanliness is next to not being six flagsliness.

 

[mitros]

Honestly, I really think that's already the case. Much of what we could point to as being more than that are leftovers that haven't been erased yet.

Your culture comment is key. I see no real attempt by Iger to change the culture. He just has a different way of implementing it. I don't really see him as being worse than Eisner, its just that the train Eisner started is moving along very well, and it'll take far more than somebody "not as bad" to actually slow and even reverse that process.

I do see your point though about Iger's calm and business-like demeanor masking what is really happening for those who were so focused on Eisner's obvious shortcomings.

We are also forgetting that a lot of folks on these boards suggested that Iger was basically hand picked by Ei$ner, and Ei$ner really left because he knew that "his ways and means" would be carried on by his "seed" left behind in Igers mind. Ei$ner was good to go, but did we get the right choice in Iger? I still wonder...

 

[Peter Pirate 2]

Thanks for the explanation double, I see and agree.

Of course Iger was Eisner's choice, that's almost always the case and I am one who believed Iger deserved a shot to show what he could do coming out from Eisner's shadow. He earned that right, IMO, by being the loyal executive for all those years. Alas he appears to be nothing more than a suit and again (IMO) less magical that Eisner.

As I said before, at least Eisner fancied himself as creative which has to count for something I guess. Iger isn't imaginative and doesn't care. In other words, he learned survival skills and knows how to be a corporate leader. Not what most of us were hoping we'd get as the main qualities in Disney's next boss.

 

[Luv2Roam]

From my perspective, and I don't have any idea I am correct or not --
Disney is moving the displaced workers from what I have read. It does not appear anyone is out of a job.
And I am not surprised with the current labor market. Disney is having a hard time filling some positions. They will be able to move the current people to areas that probably need staff too. Then the out sourced positions will be that company's concern to fill.
Do I think they will do a better job than Disney CMs? No, IMHO.
I am guessing this was a step to move CMs to areas that already needed filling and letting some other company fill those spots that they turned over to them to handle.

 

[canwegosoon]

Did anyone think that this might not necessarly be a bad thing? I am thinking that the outsourcing might be happening so that they can pay these workers a higher rate w/o having to increase the min. wage of the 50,000+ employees. Since WDW will not be having to pay benefits, they might be willing to pass on a higher $ per hour per employee. Also taking into account postions like carpet cleaning, kitchen cleaning, and roadway cleaning are probably all done at night, it is usually difficult to attract 3rd shift employees.
And I am sure of the 125 that might want to stay at WDW they will probably be able to do that through the usual retention means. You have to imagine that a 100-150 people a month leave WDW's employment for a variety of reasons.

 

[Peter Pirate 2]

Disney is doing nothing to the benefit of these or any other Cast Members. It's purely dollars and cents, IMO and possibly, as Luv2Roam points out, a decision based in part on labor shortages. The fact that they're offering other positions to those displaced is purely business as well.

These 125 workers are not the problem with what's going on with Disney but they are symbolic of the culture. Disney finds it OK to outsource landscaping or housekeeping and no one is the wiser but what about imagineering (discussed in other threads)? It's no different. Will hotel employees be next? Or maybe bus/transportation employees...Oh wait Disney's Magical Express is already Mears, not Disney. How far can it go?

 

[Another Voice]

How far can it go?

Take a look at what's happening to Pleasure Island. Or that Disney sold the restaurants in both California Adventure and Animal Kingdom to outside companies.

By the end of the decade it's likely the only thing "Disney" about WDW will be the name.

 

[Peter Pirate 2]

Pleasure Island? Exactly. What was once unique and special, albeit out of the normal Disney realm, will now become another City Walk...It seems Disney is the follower in this decision. BTW, not that there is anything wrong with City Walk, there isn't but it's sad to see Disney just be a lap dog in this decision.

Further, AV points to the restaurants. Be very afraid of the current direction of the great dining at WDW. The DDP is maximizing profit, minimizing creativity. Two chef's have left Disney already, don't be surprised to see Disney back right out of the high end culinary market too.