Economy

AT&T and other Banks Offer Bonuses and Pay Hikes

BWorld - at&t sign on building

AT&T Inc., Wells Fargo & Co., and Boeing Co. are some of the American companies that promised more incentives. Workers are offered higher payments or more investment in training on Wednesday after U.S. tax reform was finalized.

The U.S. House of Representatives, which mostly have Republicans, gave final approval to the tax bill on Wednesday. The tax bill cuts the corporate tax rate from 35 percent to 21 percent. They then sent it to President Donald Trump for signing.

The announcement made by the companies supported claims made by Trump and other Republicans that the tax bill will give U.S. companies more opportunity for more investment due to the savings they will gain from the bill.

The tax reform bill will be signed into law by 2018.

The Bonuses and Rate Hikes

AT&T, U.S.’s second-biggest wireless carrier, stated that it will pay $1,000 worth of bonuses to more than $200,000 employees. It added that it will be investing additional $1 billion in the U.S. by 2018.

The bonuses are unrelated to the $1,000 that 20,000 AT&T Mobility employees will receive. These 20,000 workers were part of the agreement stuck with the Communications Workers of America which was announced last week.

AT&T said in a statement that the employees qualified for the bonus are all “union-represented, non-management and front-line managers.” The company has a total of more than 250,000 employees. Bonuses will lead to around $200 million of additional costs, the precise amount remains to be seen, the company said.

Comcast Corp., a cable provider, said that it will also give $1,000 bonuses to more than 100,000 employees. In addition to this, it will also invest $50 billion in infrastructure over the course of the next five years.

Well Fargo atm

Wells Fargo & Co. said that it will raise minimum hourly pay to $15 an hour in March. The raise is 11 percent higher from the previous minimum. The bank will also offer new restricted stock awards to 250,000 employees.

Fifth Third Bancorp, a U.S. regional bank, said that it will increase the hourly wage for almost 3,000 of its employees. The rate will then rise to $15 an hour. It will also give a one-time bonus of $1,000 to more than 13,500 of its employees. The regional bank’s CEO then pointed out that it’s possible due to the corporate tax cut.

Lastly, Aerospace company Boeing Co. said on Wednesday that it will be investing $300 million in workforce training and enhancing its facilities for employees. This was done as its CEO praised the tax bill.

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