Tax Reform: Benefits Aplenty For Workers

Changes Due To Tax Reform Will ‘Benefit More Than 1 Million U.S. Hourly Workers’ At Walmart

WALMART: “Today, Walmart announced plans to increase the starting wage rate for all hourly associates in the U.S. to $11, expand maternity and parental leave benefits and provide a one-time cash bonus for eligible associates of up to $1,000. The company is also creating a new benefit to assist associates with adoption expenses. The combined wage and benefit changes will benefit the company’s more than one million U.S. hourly associates.” (Walmart, Press Release, 1/11/2018)

“Walmart's employees will soon reap the benefits of the recent tax law changes, as the company raises its starting wage, creates new benefits and distributes bonuses to eligible workers.” (“Walmart To Raise Its Starting Wage To $11, Give Some Employees Bonuses Following Tax Bill Passage,” CNBC, 1/11/2018)

• “The pay increase and bonus will benefit more than 1 million U.S. hourly workers, it said.” (“Walmart Raises Minimum Wage To $11 An Hour In Wake Of U.S. Tax Law,” Reuters, 1/11/2018)

• “Wal-Mart is the largest private employer in the world with 2.2 million employees, including more than 1.5 million [employees] in the U.S. Its current starting salary in the U.S. is $10 an hour after workers take a training course. The new wage increase will take effect in February.” (“Wal-Mart To Raise Minimum U.S. Wage To $11 An Hour,” The Wall Street Journal, 1/11/2018)

“Walmart Stores Inc. said on Thursday it would raise entry-level wages for hourly employees to $11 an hour as it benefits from the biggest overhaul of the U.S. tax code in 30 years.” (“Walmart Raises Minimum Wage To $11 An Hour In Wake Of U.S. Tax Law,” Reuters, 1/11/2018)

“The world’s largest retailer said the increase would take effect in February and that it would also expand maternity and parental leave benefits and offer a one-time cash bonus of up to $1,000.” (“Walmart Raises Minimum Wage To $11 An Hour In Wake Of U.S. Tax Law,” Reuters, 1/11/2018)

• “Those workers with more than 20 years of experience will qualify to receive the full $1,000.” (“Walmart To Raise Its Starting Wage To $11, Give Some Employees Bonuses Following Tax Bill Passage,” CNBC, 1/11/2018)

• “Employees with 15 to 19 years of service at Walmart will receive $750, while those with 10 to 14 years of work there will receive a $400 bonus, and five to nine years of experience merits a $300 bonus, he said.” (“Walmart To Raise Its Starting Wage To $11, Give Some Employees Bonuses Following Tax Bill Passage,” CNBC, 1/11/2018)

• “…workers with two to four years of experience will receive $250, a Walmart spokesman told CNBC.” (“Walmart To Raise Its Starting Wage To $11, Give Some Employees Bonuses Following Tax Bill Passage,” CNBC, 1/11/2018)

“The company said the salary change would add $300 million to its annual expenses and it expects to take a $400 million charge in the current quarter for the one-time bonus.” (“Wal-Mart To Raise Minimum U.S. Wage To $11 An Hour,” The Wall Street Journal, 1/11/2018)

Other Major Companies With More Than 100,000 Workers Have Also Announced Bonuses And Wage Hikes For American Workers

WELLS FARGO: With 250,000 plus employees “Wells Fargo, meanwhile, also said it would be boosting its minimum wage for employees to $15 an hour. The bank alsopo said it would target $400 million in donations to community and nonprofit organizations next year.” (“Wells Fargo, Fifth Third Bancorp Unveil Minimum Wage Hikes After Tax Bill Passage,” CNBC, 12/20/2017)

AT&T: “AT&T Is Giving $1,000 Bonuses To 200,000 Employees After Tax Bill: AT&T was quick to respond to news of U.S. tax reform, announcing it would give some employees bonuses once the legislation is signed into law. The telecom giant said in a press release Wednesday that it would give more than 200,000 U.S. union members a special bonus of $1,000.” (“AT&T Is Giving $1,000 Bonuses To 200,000 Employees After Tax Bill,” CNBC, 12/20/2017)

DARDEN RESTAURANTS: “Restaurant companies are joining the corporate chorus rushing to praise the tax bill Congress passed last month as Orlando-based Darden Restaurants said the legislation will save it about $70 million. Olive Garden and LongHorn Steakhouse parent company Darden Restaurants said the new tax reform plan will cut taxes by about $70 million in the third quarter. The Orlando-based restaurant chain said Monday the tax cut will prompt it to spend an additional $20 million on its 175,000-plus employees this year…” (“Darden Says Tax Reform Will Save It $70 Million,” Orlando Sentinel, 1/8/2018)

BOEING: “Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing…. While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:

• $100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing's focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
• $100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
• $100 million for ‘workplace of the future’ facilities and infrastructure enhancements for Boeing employees.” (Boeing, Press Release, 12/20/2017)

BANK OF AMERICA: “Bank of America will give some of its employees a $1,000 bonus, citing the tax bill that was just signed into law. ‘Beginning in 2018, we will see benefits from the tax reform ... in the form of lower corporate tax rates,’ CEO Brian Moynihan said in an internal memo to employees obtained by CNBC. He also said that about 145,000 employees will receive the bonus.” (“Bank Of America Is Giving Some Employees A $1,000 Bonus, Citing Tax Bill,” CNBC, 12/22/2017)

AMERICAN AIRLINES: To more than 100,000 employees “We are pleased to announce that in light of this new tax structure and in recognition of our outstanding team members, American will distribute $1,000 to each team member (excluding Officers) at our mainline and wholly owned regional carriers. These distributions will total approximately $130 million and will be made in the first quarter of 2018.” (American Airlines, Press Release, 1/2/2018)

COMCAST: “Based on the passage of tax reform … Brian L. Roberts, Chairman and CEO of Comcast NBCUniversal, announced that the Company would award special $1,000 bonuses to more than one hundred thousand eligible frontline and non-executive employees.” (Comcast, Press Release, 12/20/2017)