Disney’s (NYSE: DIS) theme parks are a pillar of its financial health, which shows up in earnings reports. Workers at Disneyland, which opened in 1955 and is located in Anaheim, just outside Los Angeles, may strike the location, which could shut it down.
About 14,000 workers have accused Disney of unfair labor practices and are negotiating with the massive entertainment company. The union Disney Workers Rises is part of the larger UFCW 324. On July 19, it announced, “Today Disneyland Park cast members made their voices heard by voting to authorize the Disney Workers Rising bargaining committee to call for a strike to protest unfair labor practices by 99%.”
The action does not mean there will be a strike immediately. The unions will return to the bargaining table early next week. Disney says it is open to negotiations with the organization covering 14,000 workers. In the middle of summer, the park is usually full. Among the claims the union has made is that its workers have been “intimidated” by management.
Disney will have its next earnings report on August 7. In the most recently reported quarter, Disney’s revenue rose only 1% to $22.1 billion. EPS dropped from $.69 to ($.01) Its “Experience” division, primarily made of theme parks, had revenue that rose 10% to $8.4 billion. Operating income rose 12% to $2.3 billion.
Disney needs a healthy theme part to keep earnings from dropping.
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