Coronavirus News: Disney World Furloughs 43,000 Union Workers As Parks Remain Closed

As Disney's (DIS) parks remain closed due to the coronavirus, the entertainment company will reportedly furlough 43,000 union workers, effective Sunday.

According to the Services Trade Council Union, Disney will pay 100% of health insurance for the affected workers for up to 12 months. Less than 200 workers will remain working for Disney during the furlough period.

"We are pleased to have reached an agreement with the Service Trades Council Union that will maintain members’ health insurance benefits coverage, educational support and additional employee assistance programs during a temporary furlough effective April 19," Walt Disney Resort told CNBC. "This agreement provides an easier return to work when our community recovers from the impact of COVID-19. We are grateful to have worked together in good faith to help our Cast Members navigate these unprecedented times."

A few weeks earlier, Disney also furloughed some non-union workers at its theme parks in the U.S. The company also stopped collecting payments for its annual park passes. According to the news outlet, the company has about 177,000 cast members, including workers in its theme parks and retail locations.

Disney closed its theme parks around the world infinitely after large gatherings were restricted to prevent the spread of COVID-19. Its theme parks in Asia were closed in February with its parks in the U.S. and Paris closed in March.

Because of the impact that the coronavirus is having on Disney and its employees, Bob Iger, executive chairman of the company, will not collect a salary while CEO Bob Chapek will take a 50% pay cut.

Shares of Disney stock were down 4.39% as of 10:27 a.m. EDT on Monday.