Disney Drops Bid for Store at Airport
The Walt Disney Co. has unexpectedly dropped plans to open a store at Los Angeles International Airport, and indicated that unease over the city’s recently adopted ‘living wage’ ordinance is among the reasons, according to city officials.
A Disney spokeswoman, however, said Wednesday that the impact of the ordinance was insignificant compared to other reasons, asserting that the 613-store chain wanted two sites within the airport, only got one and simply concluded that a sole location “didn’t make good business sense.”
Meanwhile, the revelation that the ordinance played a part, minor or otherwise, in Disney’s decision to opt out of the airport--where officials are intent on upgrading the quality of food and retail merchandise concessions--sparked concern Wednesday at City Hall.
Councilwoman Ruth Galanter, whose district includes the airport, wrote a letter Wednesday to Michael D. Eisner, Disney’s chief executive, describing a phone conversation in which a Disney official reportedly told airport staffers that the living wage measure was “in effect, the straw that broke the camel’s back.”
“In light of Disney’s exemplary record of civic activity,” Galanter wrote, “I find this very disturbing. Surely the Disney companies are in a position to pay employees a living wage.”
She asked for a “clarification” of Disney’s position “with regard to employee compensation in general” and the living wage ordinance “in particular.”
The ordinance, enacted in April, requires all firms seeking new business with the city or those renewing contracts to pay workers at least $7.25 per hour with benefits, such as health insurance, or $8.50 an hour without such benefits.
Disney officials declined Wednesday to say what hourly employees are paid. The stores are a retailing success story that sell items including Aristocats figurines, 101 Dalmatians coloring books and Minnie Mouse underwear for toddlers. Launched in 1987 with a single location in Glendale, the stores have since spread nationwide.
Last year, airport officials solicited bids from retailers.
In July 1996, Disney’s bid came in with about 80 others, according to a Board of Airport Commissioners report.
This April, planners recommended to the board that Disney get a prime spot--1,927 square feet and directly across the concourse from an existing McDonald’s and a Wolfgang Puck cafe--in Terminal 7, base for United Airlines.
Disney, however, wanted two spots, the slot in the United terminal as well as a 2,008-square-foot space in the international terminal.
Sondra Haley, vice president for publicity and promotions for the Disney Store Inc., said international travelers on average “spend two to four times more per person” than domestic fliers.
And, in a July 16 letter to Councilman Hal Bernson, Jerald K. Lee, the airport’s deputy executive director, wrote that “Disney Store staff have verbally indicated that adherence to the recently adopted Living Wage Ordinance would result in a detrimental impact upon the financial elements of their proposal.”
Haley responded Wednesday that the ordinance did not play a key role in Disney’s withdrawal.
