Do CMs these days not know the older characters?
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A CM's basic responsibilities (as for Disney knowledge) only lies in their work location. This means that a CM working Mr. Toad's Wild Ride *should* know the characters featured in the ride. Most likely trainers will talk to them about this. But as for learning all the characters from the other rides near by, that's not something covered in orientation and not a requirement. The same goes for park locations in general. For instance, I worked at Epcot and had to know all rides, attractions, and restaurants, but I didn't have to learn what was at DHS, DAK, or MK (only what transportation to get there).
I like to think I'm very knowledgeable about Disney movies, but only on movies I grew up with or seen during my lifetime. I can tell you nearly every character's name from Lady and the Tramp, but ask me anything about Sleeping Beauty or Robin Hood, and I'll be mostly stumped.
Ahhh, there is where I have a problem with the scenario. I don't happen to think that Figaro is all that obscure....but, I've also know who he is for many many years and it is difficult for me to pull myself out of the Disney trenches. We can argue all day about whether he is obscure or not. And I agree that it is unrealistic to expect a cast member to know everything.
However, like you said, a cast member should know their workstation. And since there were Figaro pins in the work station, by default, the CM should have known who he was in order to know their merchandise.
Just for kicks, back to the obscure/not obscure debate....Figaro is on park merchendise almost every Halloween. If you are familiar with Halloween time at Disney, how can you not know who Figaro is? Or are people just completely uninquisitive and think that it is just some random black cat sitting on Minnie's broom every year?