Who Wouldn’t Want 401(k)? Possibly Disneyland Workers

Postponed in Disneyland’s contract settlement with 3,400 of its employees over the weekend was a vote on a company proposal to start a 401(k) retirement plan in a year and a half. It’s an important issue to watch, observers of the Anaheim theme park say.

Approving the savings plan would seem to be a no-brainer for the ride operators, janitors, ticket-takers, store clerks and others affected. Workers can set aside up to 15% of their wages without paying taxes until they withdraw the funds in retirement. And for the first 4% they set aside, Disney kicks in 50 cents on the dollar.

Indeed, Disneyland building trades and hotel and restaurant workers had already voted for the 401(k). But there are catches to the company offer, including eliminating pensions for workers hired after June 2000.

Disney also wants another concession in return for the 401(k): The first 1 1/2% of pay increases under the new contract would be a bonus, not part of the base used to calculate future raises. That provision and the 1 1/2-year delay in implementing the plan would largely cover the company’s costs for it, said Bob Lennox of Teamsters Local 495, one of the unions involved in the negotiations.

In the end, the unions decided to split off the 401(k) issue from the rest of the contract for a vote later. United Food and Commercial Workers negotiator Andrea Zinder said the unions will conduct an educational campaign on the issues so the members will be fully informed when they vote.

Disneyland officials didn’t respond to a request to discuss the employee retirement plans.