AT&T will give one-time $1000 bonuses--and no wage increases–but to a maximum of 200,000 employees (how many will really get it, and will they be mainly everyday workers?). Meanwhile, they’re laying off 600 workers (to start with?).
Comcast says it, too, will give %1000 bonuses, to “eligible frontline and non-executive employees.” Sounds like the worker bees will be getting the money, but do they fall into the undefined “eligible”?
By the way, both AT&T and Comcast have already announced broadband and cable TV price hikes for us starting soon.
Others who have announced coming $1000 bonuses (without much detail) include Bank of America, Nationwide Insurance, JetBlue Airways and US Bancorp. Everyone is jumping on the bandwagon in light of their corporate tax cut from 35% to 21% under the new tax plan. These, too, are one-time bonuses, not the pay raises that proponents of the plan promised would result.
Then there’s Walmart. They’re raising pay to $11 per hour and giving bonuses to some of its workers–and laying off thousands of workers as it closes 63 Sam’s Clubs. And they’ve just announced layoffs at their Walmarts.
Note that these bonuses cost the corporations far less than pay raises would over time. This year, they’re a boon to the worker, although he’ll be taxed on the bonus, and a tax write-off for the companies. The following years the companies continue to enjoy their decreased tax burden, but what about the worker, who doesn’t see another bonus or pay raise?
Is this really a beneficial result of the new tax plan or actually a PR sleight-of-hand?
