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After Uproar, Disney Cancels Tech Worker Layoffs

An anonymous reader writes: The NY Times previously reported that Disney made laid-off workers train their foreign replacements. The Times now reports that Disney has reversed its decision to lay off the workers and canceled training of the replacements. This follows public uproar, two investigations by the Department of Labor into outsourcing firms, complaints to the Justice Department, and calls for an investigation into the H-1B Visa program by Senator Bill Nelson. One of the workers said, "We were told our jobs were continuing and we should consider it as if nothing had happened until further notice." A former Disney employee who was forced to take an early retirement shared his personal thoughts on the matter in a Google+ post.

45 of 229 comments (clear)

  1. Don't worry, they'll try again by Lunix+Nutcase · · Score: 5, Insightful

    One of the workers said, "We were told our jobs were continuing and we should consider it as if nothing had happened until further notice."

    Yeah, that notice will be updated employment terms to try to aggressive prevent people from leaking out the details when they attempt to do the H1-B swap the next time.

    1. Re:Don't worry, they'll try again by gstoddart · · Score: 5, Insightful

      Yeah, no shit .... Disney will just do it more gradually after the uproar dies down.

      This is PR damage control, nothing more.

      Give it six months, and they'll probably still be out of a job.

      --
      Lost at C:>. Found at C.
    2. Re:Don't worry, they'll try again by garyisabusyguy · · Score: 5, Insightful

      Trust, it takes a long time to build and just a few seconds to destroy

      --
      Wherever You Go, There You Are
    3. Re:Don't worry, they'll try again by LaurenCates · · Score: 5, Insightful

      Indeed. I've been through this sort of thing before. Tell the people all is well, even though the boots on the ground know that what's going on doesn't pass the smell test.

      The layoffs will happen, but they will be done more quietly and more gradually. Count on it.

      --
      Some people don't believe in fairies. I don't believe in The Patriarchy.
    4. Re:Don't worry, they'll try again by Lunix+Nutcase · · Score: 3, Insightful

      Yeah, they'll likely try to slap an onerous non-compete and NDA into the employment terms as the first wave to weed people out. Then all the people who were too scared of losing their job not to agree will then get silently laid off later.

    5. Re:Don't worry, they'll try again by hrvatska · · Score: 5, Insightful

      Disney management will simply wait for the uproar to die down and then start setting vague and aggressive performance objectives for the U.S. workers. They'll then get rid of people via performance review. Workers who had formerly been getting good reviews will suddenly find themselves on notice for not measuring up in Disney's new high performance culture.

    6. Re:Don't worry, they'll try again by XxtraLarGe · · Score: 4, Insightful

      Yeah, that notice will be updated employment terms to try to aggressive prevent people from leaking out the details when they attempt to do the H1-B swap the next time.

      Key part of the phrase: "until further notice." My guess is they're going to train all of these H1-B's at a different place, then lay off all the regular workers at the same time without notice. Either that, or they will find excuses to fire them one at a time, gradually replacing them.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    7. Re:Don't worry, they'll try again by khasim · · Score: 4, Insightful

      So anyone working there with any common sense at all should be interviewing NOW!.

      If you aren't interviewing then you should be updating your certifications and such.

      This isn't some kind of "oops we made a mistake" error. Upper management wants to replace you with cheaper options. Get out on your terms instead of their terms.

    8. Re:Don't worry, they'll try again by dj245 · · Score: 4, Insightful

      Trust, it takes a long time to build and just a few seconds to destroy

      Well, that's giving Disney too much credit I think. This was a long time in the works with several different departments and at least a dozen people involved. You have to have meetings with the outside contractor, draft a contract, get approvals, arrange payment methods, etc etc. You need to have meetings with HR, and they have to get all the preparations in place to fire the American workers. Somebody has to coordinate employee orientations and reassign assets from all the terminated employees to the replacement workers.

      This was a carefully planned operation with many people involved. It was deliberately done, step by step, over the course of months or even years. The only mistake is that people found out about it.

      --
      Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
    9. Re:Don't worry, they'll try again by __aaclcg7560 · · Score: 4, Informative

      That almost happened to me last year when I was looking for a job. I was scheduled for an interview with the India-based Infosys (one of the companies that provided workers to Disney). If I haven't got hired elsewhere, I would be a "diversity hire" to prove that they weren't 100% Indian workers in the U.S.

    10. Re:Don't worry, they'll try again by ItsJustAPseudonym · · Score: 4, Informative

      "The only mistake is that people found out about it."

      THAT is the "seconds to destroy" part, that the parent referred to.

    11. Re:Don't worry, they'll try again by AuMatar · · Score: 4, Interesting

      Not just interviewing, unionizing. If I was told me and my coworkers were being fired in 90 days and were to train our replacements, I'd gather up my coworkers and tell them we want a year's salary as a bonus now or we all walk that afternoon. Especially if they later try to pull this shit- I'd be demanding huge raises/bonuses to stick around for any time at all.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    12. Re:Don't worry, they'll try again by alexgieg · · Score: 3, Insightful

      Intel did something as much evil and it went through undisturbed. Everyone there was invited to move to Portland if they wished to keep their jobs. Those who didn't accept moving were considered as having resigned, so without any right to severance packages. After all, Intel didn't fire anyone, right? It's the employee who "unreasonably" didn't "want" to move to the other side of the country. And the sociopaths who thought of this plan undoubtedly earned huge bonuses thanks to the "economy" they caused the company.

      Americans, it seems, love their corporate overlords. That's the only explanation I can think of for something so absurd to be allowed to happen.

      --
      Conservatism: (n.) love of the existing evils. Liberalism: (n.) desire to substitute new evils for the existing ones.
    13. Re:Don't worry, they'll try again by electrosoccertux · · Score: 5, Insightful

      honestly, if you're going to bribe congress to let you pillage the country's copyright system getting it extended every 25 years so that your financial conglomerate can continue leaching off the IP of one creative man who died 50 years ago, the least you can do is keep some Americans employed.

      fuckers.

    14. Re:Don't worry, they'll try again by jeffmflanagan · · Score: 4, Insightful

      Just like attention was drawn to the destruction of so much blue-collar work? Most Americans don't seem to care that the wealthy are looting the country until they lose their own jobs. Too many working-class people have an absurd belief that they'll be one of the wealthy exploiters, so support the destruction of the American dream of hard work bringing you a good life. It's insane.

    15. Re:Don't worry, they'll try again by Jason+Levine · · Score: 4, Insightful

      My father was fired from a job (decades ago) and received a severance package. He was made to sign a contract that said that merely talking to a lawyer about why he was fired would be cause for the company to revoke his severance. Could a decent lawyer have ripped this to shreds? Probably. However, my father needed the money and couldn't risk losing his severance - much less spending time/money on a lawsuit instead of finding a new job.

      What "is legal to do" and "what is done" are often two different things and companies will often bank on people not having the resources of a big company to fight back legally.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    16. Re:Don't worry, they'll try again by Anonymous Coward · · Score: 5, Insightful

      In the late 90's there was talk about unionizing IT, but in Silicon Valley at the time, people who could barely boot up Windows 95 were getting 90K a year to start. No one thought we'd ever need unions.

      For a bunch of allegedly smart people, we were shortsighted and dumb.

      Being on call 24/7 for years, including ALL holiday's, because companies don't want to hire shift workers, working 70 hours a week on salary, and then moving into management and being told to outsource my entire admin/engineer staff.... hindsight is a bitch.

      Unionize now.

  2. Update the resume by buk110 · · Score: 5, Informative

    And start looking anyway. This is a temp stop gap to keep people from rioting, they'll hope the masses forget about it and can try this again in 6 months. Don't give them the chance, get out of dodge while you can

    1. Re:Update the resume by 8282now · · Score: 3, Interesting

      Which ironically will give them the exact justification to bring in the contractors -

      What does quitting do other than fulfilling what management wanted all along??

    2. Re:Update the resume by buk110 · · Score: 3, Insightful

      Because in a few months they're going to pull the same stunt and if the flood gates open you might as well find a job before the flood of applications hit all at once

    3. Re:Update the resume by Lunix+Nutcase · · Score: 4, Insightful

      Which ironically will give them the exact justification to bring in the contractors -

      Which is no reason to stick around working for a company that clearly wants to fire you.

      What does quitting do other than fulfilling what management wanted all along??

      It gives you a chance to get a job at a company that might actually value you? It's not like staying around is somehow sticking it to Disney or any of the boneheads pushing the H1-B plans. So why stick around at a place that doesn't even pretend to have loyalty to you?

    4. Re:Update the resume by HarrySquatter · · Score: 4, Informative

      Quitting allows you to leave on your own terms rather than being humiliated into training your low-pay replacements and then being fired. Are you really saying that workers should stick around at a company that was just days before trying to lay them off?

    5. Re:Update the resume by sconeu · · Score: 3

      Except that management will have nobody to train the newbies. Hilarity ensues!

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
    6. Re:Update the resume by gstoddart · · Score: 4, Insightful

      Worse than that, if everybody sends a big "fuck you" and leaves all at once, they don't have people to keep doing the job.

      And then they'll pretend like their employees owe them something and act like victims.

      These people have already lost their jobs. The only difference is how much longer they collect the checks, and how much Disney forces them to shut up next time.

      --
      Lost at C:>. Found at C.
    7. Re:Update the resume by Zontar_Thing_From_Ve · · Score: 3, Insightful

      Quitting allows you to leave on your own terms rather than being humiliated into training your low-pay replacements and then being fired. Are you really saying that workers should stick around at a company that was just days before trying to lay them off?

      I don't think you understand something at play here. In my career of 28 years in IT, I have noticed that some people will just not leave - ever - under any circumstances until you turn out the lights and close the doors. What I mean is, no matter how bad the job is, some people will not ever leave it until they get thrown out the door or the company goes out of business. Not always, but usually it's the people who are just barely getting by. Some years ago we hired a guy who used to work for a local bank and his local bank got bought out by a much bigger bank out of state. They planned to shut down all their IT work in our city for this bank they bought, but they needed this guy and his co-workers to stay to help out with the transition. At first they were told 6 months and they'd be done. 6 months came and they got offered another 6 month extension. Then came another 6 month extension. The guy looked for another job and we hired him, but he left a co-worker behind who just didn't want to leave. Eventually after maybe 3 years, they finally closed down the IT work in our city and co-worker guy now for real has to find a job. The guy we hired asked us to hire his co-worker and we couldn't. No more openings. Even though this guy knew his job was going to end sooner rather than later, and the bank did not want to keep him on after it closed down all the local IT work they had, he refused to leave or even start looking for a job until they told him "Your job is over. Thanks. We'll send your final paycheck to you. Today is your last day." My previous employer, a European company, did some really reprehensible things to us before I left. They changed our terms of employment to favor them and enable them to cheat us out of severance pay they promised us and told us we had to either accept the new terms that let them do it or quit. Then they gave my small department 6 months notice that they were moving our jobs to another lower cost country (not India though). I was the only person in my office to find another job before the deadline. Nobody else would leave. One of the things you see at Disney is a lot of employees are big Disney fans, so they want to work there and they will put up with a lot of bs to do so. Even with these workers temporarily getting their jobs back, and yes we here all know this likely won't have a happy ending for them, more like a temporary reprieve, I guarantee you that many will still happily go back and refuse to look elsewhere for a job until they get this job taken away from them.

    8. Re:Update the resume by slew · · Score: 3, Informative

      But, that doesn't mean a group of workers, who aren't in a legal "Union", can't just walk out anyway. If they're being abused, they should walk out and make their complaints known.

      Although a non-union group of worker can "just-walk-out", the company can just replace them in most states. This generally isn't true with a company with a union contract (which covers allowed strikes and work stoppages/slowdowns). Also in the united states at least, there is a distinction between an economic demands strike and an unfair labor practices strike (basically company attempts to subvert collective bargaining, e.g., selective firing, refusal to bargain with a certified union). Any job protections in the case of an economic strike are basically non-existent, unless covered by a union contract.

      So if your goal is attempt to walk-out as a group to protest being replaced by cheaper labor, unless you are unionized, you have pretty much just resigned as a group. A better strategy if not unionized is to raise a stink so that the company backs off (hey, sounds familiar)...

  3. Oh, okay! by Bovius · · Score: 5, Funny

    I'll totally just go back to my job now, with no loss in enthusiasm or loyalty. It's like nothing happened! Everything is okay. I will continue working for Disney and we'll be best friends forever.

  4. Summary's wrong by the_skywise · · Score: 5, Informative

    Disney completed the layoffs of the Florida IT division (Walt Disney World)
    This was ANOTHER set of layoffs for ABC Broadcasting comprising about 35 workers that were going to undergo the same process. ABC's has been halted but, AFAIK, the Florida IT division is still SOL.

  5. Some guy posted his thoughts on Google+? by 93+Escort+Wagon · · Score: 4, Funny

    What, was his MySpace account unavailable or something?

    --
    #DeleteChrome
  6. Re:McLoving Mickey by swamp+boy · · Score: 4, Funny

    Not only that, think of what kind of effect it has on morale......

  7. I'd like to see a permanet disney 'evil counter' by TheGratefulNet · · Score: 4, Interesting

    like a doomesday counter or a count that shows the number of accident free days at work.

    but this would be a constant reminder and a bloody nose to disney, how evil this h1b policy is and how evil DISNEY is.

    'its been X days since disney last laid off US workers'. and when they do more evil shit, that counter gets reset (or, rather, its timestamp does).

    too many ignorant americans have NO IDEA how fucked up disney is. they believe the hype and drink the koolaid and continue to buy their crotchfruit more and more disney merch.

    people need to realize how evil this company is and that they are NOT worth giving your money to under any circumstances at all.

    a public counter that stays up (yeah, disney has lots of lawyers so not sure how you can keep it running under pressure of lawsuit, even though it would be fair to have this be told about them) would really keep this issue alive, long after disney has buried it in the news.

    disney should be the poster child of what is wrong with h1b. no one but us techies realize the h1b problem. the world needs to see this (at least the US does). disney might be the proper wake-up call to finally make people realize how badly we have sold our own people out ;(

    --

    --
    "It is now safe to switch off your computer."
  8. And if they really want to make nice by MikeRT · · Score: 3, Interesting

    The board should direct the termination of the executive responsible in such a way that it is termination for failing to abide by Disney, Florida and federal labor guidelines so that they don't get a severance. Since most of the employees are still there, there's no wrongful termination lawsuit they can bring against Disney so the risk to Disney by admitting that they caught an executive violating the rules and acted accordingly should be small.

  9. what is this supposed to accomplish? by roc97007 · · Score: 5, Insightful

    Ok, so you thoroughly demotivate your workers. You insult them. You treat them like idiots. Yeah, we think so little of your jobs that we're going to import untrained minimum wage foreigners to replace you, and oh, by the way, before you leave, you have to train them which button to push when the light comes on.

    You even complete the layoffs of one division. (Florida.)

    And then, responding to Bad Press, as part of damage control, you tell the remaining employees that they get to keep their jobs. At least, for now, until the news cycle passes.

    What employee in their right mind would *not* spend every moment looking for a new job at that point? What responsible individual (financially responsible to self and family) would *not* use this opportunity as paid job search?

    So, Disney may have quieted down some small portion of the uproar. But they're still going to lose all of that tribal knowledge, guaranteed. And they're going to have the most disgruntled, (old workers) and nonfunctional (imported workers with no training or support) IT department of any company still in business.

    I foresee a time when the Pirates of the Caribbean ride is populated with live H1-B actors, because nobody can figure out how to make the animatronics work anymore. Might be an improvement, except the guests will have to swim through the moat.

    --
    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
  10. Re:Job security by Anonymous Coward · · Score: 5, Insightful

    Important enough that they couldn't "just" be replaced by H-1B workers that were supposed to have skills that were unavailable in the US, the current employees were being required to train the H-1B workers in order to give them the skills and knowledge they needed to perform the job.

    BTW, importance of the job has fuck-all to do with the boss getting their quarterly bonus for cutting payroll.

  11. Re:McLoving Mickey by Anonymous Coward · · Score: 5, Interesting

    A company I used to work for in Orlando needed animators.
    We got 300 applications from people at Disney. They referred to it as Mauschwitz.

  12. Re:Why would anybody do this? by the_skywise · · Score: 4, Insightful

    Because they offer you severance pay and other benefits which you forfeit if you don't.

    Disney is also a special case in Florida because it's THE major employer in the Orlando area. If you burn your bridges there, it's unlikely you'll work in that town again. (Not that it mattered because they were blocking people from coming back as contractors anyway but I think that's a legal issue issue, not a personal one - EG Contractors who worked at a company long term were found to be defacto employees by a court ruling against Microsoft several years ago - To get around that ruling contractors have to have a "rest" period of more than a year or else they might get to sue the company. I suspect Disney's actions for not hiring back the employees as contractors right away is probably to get around that.)

  13. I sent Disney a mail.. by Stu101 · · Score: 3, Interesting

    I sent Disney a mail to the office of the CEO and complained about the terrible treatment of those American workers (I am not American BTW) but I did get a reply and I like to think that everyone who did the same helped with the cause.

    People laughed when I said I had done it, but it proves I did a tiny bit to help some jobs and I feel good, damnit :)

    --
    http://www.writeitfor.us - Writing IT for the IT generation.
  14. Where have I heard this before? by blue9steel · · Score: 4, Interesting

    I am altering the deal. Pray I don't alter it any further.
    Perhaps you think you're being treated unfairly?
    Good. You know it would be unfortunate if I had to leave a garrison here.

  15. Re:I'd like to see a permanet disney 'evil counter by gstoddart · · Score: 4, Informative

    The most obvious one is the Disney Copyright Extension Act

    After making piles of money on stuff from the public domain, Disney has fought to have copyrights almost perpetually extended. Almost every major film title Disney released for several decades was co-opting stuff in the public domain.

    Di$ney is a ruthless corporation, always has been. They'll steam roll over anybody who gets in their way.

    start here.

    Honestly, if you've never heard any of this, you've been living under a rock for decades.

    --
    Lost at C:>. Found at C.
  16. Re:McLoving Mickey by dj245 · · Score: 3, Funny

    EVERYBODY who's worked at Disney invariably refers to it as Mauschwitz (or Mouseswitz). The only other internal company name I've come across that's more universal is ex G.E. employees referring to it as "Generous Electric".

    In my industry (steam and gas turbines), GE stands for "Good Enough".

    --
    Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
  17. Re:See, I told you we're all family here at Disney by ItsJustAPseudonym · · Score: 3, Funny

    It's a small world after all!

  18. Re:for 1099ers W2 contractors working for a firm / by Frobnicator · · Score: 4, Informative

    for 1099ers W2 contractors working for a firm / outsource don't fail under that rule.

    That's an unfortunately common misunderstanding.

    There are a lot of things bunched into the "contractor" name in recent years:
    A. Working for a company under a 1099 tax reporting system, the person operates under their own business independent of the company. This is a real "independent contractor".
    B. Working for a company under a W2 tax reporting system, the regular employee loses their job at the end of the temporary employment. This is a temporary worker or contingent employment.
    C. Working for a company under a W2 tax reporting system, but that company is closely working with another company and the individual is assigned to work under their purview. This has many different names.

    The guidelines they are supposed to use, which Microsoft and many others have gotten in trouble with, is when they bring in people in group A -- independent contractors under the 1099 tax system -- and treat them as though they are group B or C -- regular employees under the W2 tax system whose employment contract may or may not have a built-in termination date. This is mostly about tax differences, since the government generally gets less revenue from option A.

    Many companies will bring in people through contracting companies like Deloitte or SAP. That is case C. These people are employed by one company as regular employees, and the two businesses have a working agreement. The individual is a regular worker and needs to have all the regular labor laws followed. This arrangement can happen for many years. Giving non-technical examples, you may have a car rental company with a single worker at an auto repair facility, or have building security hired through one company where the individuals report to work at the facility yet are hired, paid, and given other benefits by another business.

    To confuse things, many times the companies involved in option C will hire their workers under option B. The workers are brought in from a separate company like Deloitte (option C), and those workers are hired by Deloitte as W2 workers with a temporary employment agreement (option B).

    Unfortunately for workers, big companies often confuse the rules for them, calling them all "contractors" and dumping them under the same rules. Workers who were hired under option A must be able to work for additional groups. Companies get in trouble with option A when they keep the person too long since they stop looking like independent contractors and start looking like regular employees. When companies lay off lots of "contractors", usually they are laying off people under option B or C, but then refuse to hire them again because that is a rule for those under option A.

    --
    //TODO: Think of witty sig statement
  19. Re:I'd like to see a permanet disney 'evil counter by Last+Warrior · · Score: 3, Interesting

    I work for another company that has been doing this sort of thing for a long time. But instead of laying off employees and bringing on H1B's, they are bringing on recent college graduates that are also only H!B's and then making working conditions unbearable until the old timers here just leave out of frustration. There is such a high turn over rate here that we have all but stopped acknowledging when people leave. I am currently training 2 people and an expecting a third and I have to do this in addition to all other tasks that are assigned to me.

    I miss the days when I could go to a first round in-person interview and get the job before walking out of the door. I am looking, but I am not having so much luck.

    I think the problem is that many silicon Valley companies are employing these same sorts of strategies. Driving down wages by bringing in H1B's. Its like the management team reads in a business journal how all their competitors are doing this and they think that they have to do it too to keep up with the jones'. I think this is unethical and at worst, probably of questionable legality. theH1b program was designed to provide workers to supplement the workforce here because there weren't enough engineers to fill available positions. Now, the system is being used to replace engineers here with cheaper labor. This is not consistent with the intent of the provisions of H1b.

  20. Walt Dickme by TiggertheMad · · Score: 3, Insightful

    I feel conflicted...On one hand, Disney is yet again, being a shitty company and I feel bad that all these employees are being put through the wringer. On the other hand, if you are gullible enough to take a job at a company like Disney, you kind of deserve what you get.

    I have a suspicion that a lot of Disney employees are like people that get jobs in the AAA game industry: They think that because they love the product that is produced, the job and working conditions will somehow be good.

    Open message to anyone working for or thinking about it Disney: Research the companies history before you take a job These are shitty, shitty people that are in charge of making all these lovable characters.

    --

    HA! I just wasted some of your bandwidth with a frivolous sig!
  21. Re:McLoving Mickey by kbrannen · · Score: 3, Informative

    The only other internal company name I've come across that's more universal is ex G.E. employees referring to it as "Generous Electric".

    When I worked at TI (Texas Instruments) in the 90's, it was pretty universally referred to as "Training Institute" because so many people would work there for a few years after college before going somewhere else. Some people also called it "Tiny Income". There's some truth to both. :)