2011 Shareholder Meeting Update #8: Q&A – Labor Dispute at Disneyland Resort

Q: Bellman at Disneyland Resort urges Disney to get more involved in resolving the Disneyland Resort labor dispute now in its 4th year. Has the Board discussed the issue.

A: Pepper: The issue has been discussed in nearly every Board meeting. Iger: Appreciates the manner in which the issue was raised. 30 of the 31 unions have already agreed to terms, only this union has not. Has personally gotten involved to make sure they were listening to the concerns of the union. Personally approved the counter proposal from Disney currently being looked at tby the union. In terms of health care – 99% of all large companies offer HC coverage that requires employees to defray some of cost. Disney is asking for 25% to be defrayed. 25,000 employess across Parks and Resorts with similar compensation are covered by the same policy. Plan is about 20% better in terms of lower cost to the employee than other companies in the same sector in the region. Gave employee flexibility to choose from seven different plans. Continues explaining why Disney feels their plan is fair.

Response from Questioner: Says their union is the only one that has given up raises of the 31 unions to maintain current coverage. 

More Answer: Have not received increases while the new contract is being negotiated. Reiterates how fair he believes proposal is.