Will Disney raise wages due to the new tax bill?

Several major companies have already announced they are hiking their minimum wage as a result of the new tax bill passing. The bill dramatically cuts corporate taxes and some companies plan to pass on some of that windfall to their employees. That immediately made me think of the current contract negotiations going on with Disney. The company is going to save a ton of money thanks to the new tax bill. Might that encourage them to loosen the purse strings a bit with payroll?

Thoughts?

 

Wow - hadn't even thought about it that way, Steve. Great question!

 

Well...

BREAKING: Union Members Vote to Reject Disney Wage Offer in Record Turnout

It's possible but I am not so sure.

 

Unlikely

 

Comcast just announced a $1,000 bonus to more than 100,000 employees as a result of the tax bill. That makes Disney’s $200 offer look pretty sad.

 

--If that is true, wow... $100,000,000. To think that is probably play money to giant corporations is just sad.

 

I saw several major banks are raising their minimum wage to $15.00 as a result of this tax plan. That being said, Disney isn't likely to. Their biggest asset, the cast members, are worth what they can get away with paying. Even a $1 an hour increase across the board would do wonders for CMs, but I think Pete mentioned that the fight between WDW and Universal is about dollars and Disney seems more interested on developing and building brick and mortar assets over the talent they have working for them.

 

Tax breaks or not Disney should definitely raise wages... at least cast member and Imagineers wages.

 

Imagineers (for the most part) get paid quite well.

 

Good to know. I honestly had no idea if they were or not.

But they still deserve a raise!

 

In corporate decision making there is no link between a tax cut and employee salaries. Disney will make the best use of the extra funds from the tax break that it can find.

• If it makes more sense to invest in theme park hard assets then that's where it will go.
• If it makes more sense to invest in new IP, then that's where it will go.
• If it makes more sense to invest in ongoing operations (including salaries) then that's where it goes.
• If it makes more sense to acquire new media outlets then that's where it goes.

 

Don't we all. But how would we know if these particular individuals deserve a raise?

 

Fully agree - though it does seem that a number of companies are using this as an excuse to garner some good PR and positive feelings by connecting raises and bonuses to the tax cut - probably also a way of deflecting a lot of sentiments that the tax plan only favors corporations and the rich "well, the media says it only helps corporations and the rich, but b/c of it I got a raise so can't be all that bad"

 

Would be nice if they could fractionally increase the dividend payout to shareholders too.

 

I am tired of certain podcasts and people on them that continuously bash companies and Disney since they will not just hand out money. I am for giving those who deserve based on skills, talents, and performance raises, but Disney is a public company and owes it to their shareholders to control expenses. Most companies maybe give out 3% annual raises and these are very profitable and good companies. Stop with the political views and stick to entertaining. Give facts about what is going on but don't bash Disney and at the same time try to profit from talking about it.

 

If they worked on Pandora, double their salary.

 

Doubt it.

 

My employer gave 1000 bonuses.
Great to pass along to employees who will turn around and spend it as well.

It’s a great opportunity for companies to give more to employees and be able to build and hire more.

 

Sorry, foolish question.
I was wondering more how Disney would be affected (if at all) by the one time option in the tax bill for 12% repatriation tax?

 

i believe the rate in the approved version of the tax bill is 15.5% not 12%.
Still a good deal for companies wanting to repatriate profits.....
and probably many large corporations with huge pots of money overseas will take advantage of it (e.g. Apple).
as for disney, does it have much overseas profits that they want to bring back? i'm asking...i don't know the answer to the question.