AT&T, two banks provide bonuses, pay hikes in wake of U.S. tax reform

NEW YORK (Reuters) – AT&T Inc, Wells Fargo & Co and Boeing Co led the way in which on Wednesday in promising extra pay for employees or extra funding in coaching within the wake of the most important overhaul of the U.S. tax code in 30 years.

The Republican-controlled U.S. Home of Representatives gave remaining approval to the tax invoice on Wednesday, which cuts the company tax price to 21 % from 35 %, and despatched it to U.S. President Donald Trump for his signature.

The businesses’ bulletins gave no less than some assist to claims by Trump and fellow Republicans that their tax invoice would result in extra funding by U.S. corporations with the cash they save.

AT&T, the No. 2 U.S. wi-fi provider, mentioned it can pay $1,000 bonuses to greater than 200,000 workers and make investments a further $1 billion in america in 2018, as soon as the tax reform invoice is signed into regulation.

Workers eligible for the bonus are all “union-represented, non-management and front-line managers,” AT&T mentioned in an announcement. The corporate has greater than 250,000 workers in all. The bonuses will price the corporate no less than $200 million, however the exact quantity isn’t but recognized, the corporate mentioned.

Wells Fargo & Co adopted swimsuit, saying the financial institution will hike minimal hourly pay to $15 an hour in March, up 11 % from its earlier minimal. It’s going to additionally provide new restricted inventory awards to 250,000 workers.

Regional U.S. financial institution Fifth Third Bancorp mentioned it will increase the hourly wage for practically three,000 of its workers to $15 and provides a one-time bonus of $1,000 to greater than 13,500 workers, which its CEO mentioned was made potential by the company tax reduce.

The corporate mentioned it anticipated to distribute the bonuses by year-end, assuming Trump indicators the invoice by Christmas – which isn’t sure – and that the pay will increase would go into impact as soon as the invoice turned regulation.

Aerospace firm Boeing Co additionally mentioned on Wednesday it will make investments $300 million in workforce coaching and services enhancements for workers as its CEO lauded the tax invoice.


Republican senators, Home Speaker Paul Ryan and Trump praised the bulletins.

“Inside hours of passing #taxreform, we’re already seeing bulletins that corporations plan to offer again to their workers and make investments extra at residence,” mentioned Senator Shelley Moore Capito of West Virginia on Twitter. “Excellent news for employees and the economic system!”

Democrats, who opposed the invoice, supplied no congratulations. Democratic Senator Charles Schumer of New York criticized AT&T on the Senate ground.

“AT&T – massive American firm, effective American firm – their tax price over the past 10 years was a mere eight %, and so they reduce 80,000 jobs,” he mentioned. “That one statistic belies all this trickle-down bunk that our Republican colleagues nonetheless cling to although it’s outdated and disproven.”

AT&T is within the technique of buying Time Warner Inc for $85.four billion, however the U.S. Division of Justice has sued AT&T to dam the deal, saying it may increase costs for rivals and hamper improvement of on-line video.

Reporting by Anjali Athavaley in New York and David Shepardson in Washington; Modifying by Invoice Rigby

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