Academic journal article Monthly Labor Review

Final Pact at Disney World

Academic journal article Monthly Labor Review

Final Pact at Disney World

Article excerpt

After rejecting three tentative agreements, employees represented by the Service Trades Council, a coalition of six service-trades unions, ratified a 4-year contract covering some 18,500 employees at Walt Disney World in Lake Buena Vista, FL. The major sticking points in negotiations were employee cost-sharing of health insurance premiums, job security, wages, and greater cross-utilization of employees.

The settlement provides two new health care options--a health maintenance organization (HMO) plan and a preferred provider organization (PPO) plan--in addition to the current traditional indemnity plan. The pact requires employees under the indemnity and PPO plans to begin paying a share of health insurance premiums for dependent coverage; HMO participants will not be required to share premium costs. Indemnity plan participants will pay up to $12.50 a week for a single dependent and up to $20.40 a week for two or more dependents, with the actual amount depending on their deductibles and number of dependents. PPO participants will begin paying for dependent coverage in April 1995--$1.42 a week for one dependent and $2.48 a week for two or more dependents. In January 1998, PPO participants will pay $5.65 a week for one dependent and $9.90 a week for two or more dependents. …

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