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  1. #1

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    How much would pay increases actually cost?

    There has been a lot of chat about pay increases and the benefits of such. Yet, time and again we see Disney doing anything it can to avoid them. (As any business would.)

    So can anyone provide some numbers so we can sit down and churn out the exact dollars of a pay increase?

    Since most people focus on the in-park CMs, let's start with those.

    How many hours a year do Union CMs work? That's total. Not how much you work personally. How many hours all together do union CMs put in at Disneyland?

    Lighthope

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  2. #2

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    Re: How much would pay increases actually cost?

    You'll have to provide inputs:
    1. Average Number of hours per CM per week = X
    2. Average Number of CMs = Y
    3. Amount to raise per hour = Z


    He's the math:
    Additional Costs = X*52*Y*Z.

    Suppose 40000 CMs, working 31 hours on average, and a $1 pay raise.
    40000*52*31*1 = about $64,500,000 per year.

    To put that in perspective, that would require about 1,400,000 additional guests paying an average of $45 per head to enter DL.

    Or a million souvenir t-shirts at $64 each (assuming they cost nothing to make, transport, etc.)

    (Or, 215,000 additional PAPs at $300.)
    (Or, a $107 per year increase in AP prices.)
    Last edited by sediment; 03-14-2007 at 06:38 PM.
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

  3. #3

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    Re: How much would pay increases actually cost?

    Quote Originally Posted by sediment View Post
    You'll have to provide inputs:

    Suppose 40000 CMs, working 31 hours on average, and a $1 pay raise.
    40000*52*31*1 = about $64,500,000 per year.
    That's pretty much what's being asked.

    Of course, 40K CMs don't work at Disneyland an average of 31 hours a week.

    I would like to hear some hard (or at least ballpark) numbers.

    To put that in perspective, that would require about 1,400,000 additional guests paying an average of $45 per head to enter DL
    Oh, it would be more than that. Don't forget the taxes having to be paid on all that extra admission.

    Lighthope

    Pearls of Wisdom - I was born intelligent. Education ruined me.

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  4. #4

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    Re: How much would pay increases actually cost?

    They don't? You have a better number? Then simply input it into the equation. That's the beauty of this function: it doesn't have to be changed. Only the numbers have to be changed.

    Do note that there is DCA to worry about, too. And second and third shifts. Some part-timers and some overtimers.

    I think $65 million is a good number to start with. Plus/minus $40 million or so.
    Now, instead of trying to cut costs in order to pay for these, let's think of some revenue ideas.....hmmm, attendance revenue could be increased. Probably should increase the prices of those who pay the least to enter. That would be a bigger boost than turning away those who pay the most...

    Even more attendance? How would we get more people to pay to attend? Hmm, must be some way... I don't think increasing the ticket prices would do, since they're already at an elastic price point (economics term: a point where increasing prices lowers admission so much that total revenue drops). Hmm, those people who DON'T pay that much to enter are at an inelastic price point. Their cost to could be increased, resulting in more revenue.
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

  5. #5

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    Re: How much would pay increases actually cost?

    Last time I checked, Disneyland Resort employeed 22,000 CMs. Not all are union workers either. There are some that a salaried too.
    Figure the number is probably closer to 15,000 union workers. It's a guess, but a more accurate one at least.

  6. #6

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    Re: How much would pay increases actually cost?

    Thank you, Wally. That does drop a lot of the cost and the relative perspective numbers.
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

  7. #7

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    Re: How much would pay increases actually cost?

    I think they could probably afford even $65 million without breaking a sweat. The parks are hugely profitable.

  8. #8

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    Re: How much would pay increases actually cost?

    Quote Originally Posted by sediment View Post
    You'll have to provide inputs:
    1. Average Number of hours per CM per week = X
    2. Average Number of CMs = Y
    3. Amount to raise per hour = Z


    He's the math:
    Additional Costs = X*52*Y*Z.

    Suppose 40000 CMs, working 31 hours on average, and a $1 pay raise.
    40000*52*31*1 = about $64,500,000 per year.

    To put that in perspective, that would require about 1,400,000 additional guests paying an average of $45 per head to enter DL.

    Or a million souvenir t-shirts at $64 each (assuming they cost nothing to make, transport, etc.)

    (Or, 215,000 additional PAPs at $300.)
    (Or, a $107 per year increase in AP prices.)
    Or half of Michael Eisner's or Robert Iger's (presumably) yearly salary. lol

  9. #9

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    Re: How much would pay increases actually cost?

    Quote Originally Posted by The International View Post
    I think they could probably afford even $65 million without breaking a sweat. The parks are hugely profitable.
    That's very easy to say. In fact, so easy that I think it should be a disallowed argument unless backed up by some facts.

    I don't have park data, but parks are part of the Company, and each part of the company holds up (or drags down) the rest. So we can't take something from the parks without affecting the entire Disney company.

    Anyway, here are some facts:

    Disney had a net income of 3.4 billion last year. That takes in the parks, television, movies, etc.

    As of last year, the entire company had 133,000 employees.

    Last time I checked, Disneyland Resort employeed 22,000 CMs. Not all are union workers either. There are some that a salaried too.
    Figure the number is probably closer to 15,000 union workers. It's a guess, but a more accurate one at least.
    22,000 sounds about right as I've heard that number as well, though can't remember from where.

    Let's count a few more workers in there to be fair as the Entertainment Department isn't union (Characters, parade, show, Slow Services -- j/k) aren't union but are front-line cast members as well.

    Let's say that the number of people who work at Disneyland (hourly only) is 20K.

    Let's further say that they work an average of 20 hours a week. (That should take care of A's as well as CRs who don't get much.)

    That's 400,000 hours worked each week at Disneyland.

    That's 2,080,000 hours worked each year at Disneyland.

    To raise everyone's pay by just one dollar (remember, people are advocating even more than that), that would cost about $2,132,000 (Raising someone's pay costs more than a dollar for dollar ratio as there are extra social security taxes throw on.)

    Now, that dollar doesn't go very far. California has an income tax. Don't forget the federal income tax. And that nasty state sales tax. (California has income and salestax. Talk about a screwed-up state!)

    Now, those numbers are lowball. I would certainly like to see some real numbers to play with.

    If these numbers are correct, though, let's think:

    Disneyland's annual paid attendance (APers don't count!) is, let's say, 10 million people.

    Those numbers sound kind of nice. Would each of you 10 million people pay $1 extra to see Disneyland Cast Members get a $2-3/hour raise across the board?

    (As a side note, one day I was really bitter and sat down and figured out Eisner's salary including his stock options. That screw-up made in one year $8.57 a second! That's a second, 24 hours a day!!! Yeah, I was really bitter that day. I had something of revenge, though. One day, when bored, instead of doing work, I discovered exactly how many licks it took to get to the centre of a Tootsie Roll pop. Got it published in the OC Register! hahahaha)

    Lighthope

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  10. #10

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    Re: How much would pay increases actually cost?

    Quote Originally Posted by Lighthope View Post
    As of last year, the entire company had 133,000 employees.
    Is entire company just that, all of The Walt Disney Company and its wholly owned subsidiaries with salaried and hourly employees? That would put 44% of the company's employees at the Walt Disney World Resort (58,000+ employees).

  11. #11

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    Re: How much would pay increases actually cost?

    Quote Originally Posted by lazyboy97O View Post
    Is entire company just that, all of The Walt Disney Company and its wholly owned subsidiaries with salaried and hourly employees? That would put 44% of the company's employees at the Walt Disney World Resort (58,000+ employees).
    I do believe that covers the entire company.

    Lighthope

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  12. #12

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    Re: How much would pay increases actually cost?

    Quote Originally Posted by sediment View Post
    You'll have to provide inputs:
    1. Average Number of hours per CM per week = X
    2. Average Number of CMs = Y
    3. Amount to raise per hour = Z


    He's the math:
    Additional Costs = X*52*Y*Z.

    Suppose 40000 CMs, working 31 hours on average, and a $1 pay raise.
    40000*52*31*1 = about $64,500,000 per year.

    To put that in perspective, that would require about 1,400,000 additional guests paying an average of $45 per head to enter DL.

    Or a million souvenir t-shirts at $64 each (assuming they cost nothing to make, transport, etc.)

    (Or, 215,000 additional PAPs at $300.)
    (Or, a $107 per year increase in AP prices.)

    SERIOUSLY, so impressive, Sediment.

  13. #13

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    Re: How much would pay increases actually cost?

    Lets try and see if there are simple ways to save money needed.

    Here's one idea:
    Cut the fireworks back to a more realistic amount. How many a week do they do anyways?
    Cutting back would gain several positives.
    - saves money which could be transfered to the SG &A resulting in bare minimum better benefits, hopefully in increased pay
    - Would make the fireworks an event, rather than common place
    - locals would be happier

  14. #14

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    Re: How much would pay increases actually cost?

    133,000 has got to be a low ball number if you figure in abc, espn, and such since wdw is the largest single employer in florida and I know we don't employ 40% of the disney staff. maybe thats the parks division that would make sense.

  15. #15

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    Re: How much would pay increases actually cost?

    First of all, great thread.

    Second, whatever revenue Disneyland and DCA generates doesn't go into one big pool of money that the Walt Disney Company generates from all of its subsidiaries (ESPN, Disney Channel, Merchandise, Movies, etc.).

    The only way one subsidiary would be able to give money to another is by loaning out. That money is supposed to be paid back to the subsidiary. Each subsidiary is like it's own business. It doesn't rely on money from another to continue operations.

    Therefore, the money Bog Iger makes (or Mike Eisner made) didn't come from only Disneyland alone, but from all of Walt Disney Corp.

    Now to get to the thread topic, in order to give Cast Members a more fair wage, all those Disneyland executives that have salaries in the six figures... they're overpaid! It's really that simple. It's all corporate politics. They don't need to raise the ticket prices. They don't need to sell more merchandise. They need to stop promoting people who don't deserve promotions and get back to what matters. Everything would be fixed if they cut each of their salaries (this is a rough example) from $120,000 to $110,000. But I simply can't see that happening.

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