Disney Workers’ Benefits Lawsuit Goes Class Action

A lawsuit accusing Walt Disney Co. of reneging on promised benefits to retired studio and theme park workers has been certified as a class action, allowing 4,000 former and current employees to press their claims collectively in federal court.

The group includes about 1,600 current and former workers at Disneyland in Anaheim.

The ruling, announced Wednesday by attorneys for the retirees, was made Tuesday by Terry J. Hatter Jr., chief U.S. District judge in Los Angeles.

The suit alleges that Disney promised no-premium retirement health care to 20-year employees age 62 and older, then changed the age to 65 and began charging premiums for non-HMO coverage in the mid-1990s.

A typical Los Angeles-area worker who opted out of a health maintenance organization wound up paying more than $1,000 a year for family coverage, said William T. Payne, a lawyer for the plaintiffs. He said it’s unclear what damages could total in the case.

Disney says the changes, brought on by escalating medical costs, were allowed under its contracts with workers.

The entertainment company and the retired workers announced a settlement in 1997 that would have reduced premiums by 50% to 90%. But that deal collapsed as retirees accused Disney of secretly making additional charges.

Last year, Hatter rejected the company’s attempts to enforce the settlement.

“We’re disappointed that the judge has dissolved the agreement,” Disney spokesman Tom Deegan said. “But we’ll go forward to defend the case.”

Musician Allen J. Francis, whose monthly pension is $410 after 25 years in Disneyland bands, said Disney should return the $385 a year he has been forced to pay in premiums.

“I don’t want an HMO,” said Allen, who lives alone in an Anaheim mobile home and has suffered a stroke.

“I want the choice of my doctor, my specialist,” he said. “The only reason I stuck there was for the fringe benefits. And when the time comes, there’s nothing there.”