FedEx is now the latest company to raise wages as a direct result of the new Trump tax Cuts, Investor Place reported.
FedEx said on Friday it will spend more than $3.2 billion on wage increases, bonuses, pensions &capital investment, taking advantage of the tax codes signed into law in December, The N.Y Post reported.
$200 million is going to wage increases and bonuses to their salaried team.
FedEx also announced that it will be contributing $1.5 billion to employee pension plans, making it one of the best funded retirement plans in the country, Investor Place reported.
In addition to the raises, bonus and pension funds, they are investing in an expansion of their hub in Indianapolis and their Memphis super hub.
Several other companies have offered wage increases, bonuses, pension investments and other perks as a result of the new tax codes.
Home Depot announced one-time bonuses of up to $1000 to their thousands of workers, based on the length of time they have worked for the company, last week.
Starbucks announced that more than 150,000 hourly wage workers, who clock in 20 hours a week or more are getting more than $250 million in new employee benefits, including a pay increase, stock grants and paid sick leave.
Starbucks, Home Depot and FedEx were not the only large employers to take advantage of the new tax cuts. Wal-Mart, the nation’s largest private employer, announced earlier in January, that it’s raising the starting wage for team-members to $11 an hour and handing out $400 million in one-time bonuses of up to $1,000 to its more than 1 million U.S. workers. Full-time hourly associates will also receive an expanded 10 weeks of paid maternity leave and six weeks of paid parental leave.
Apple also announced earlier in January that “most” of its 120,000 employees worldwide will get a $2,500 stock bonus later this year. The tech giant plans to spend $30 billion in the U.S. over the next five years by hiring 20,000 new workers and building a new Apple campus in a to-be-determined location.
The president’s detractors however, do not see any of this as good news. House Minority Leader Nancy Pelosi, D-Calif., who as the 15th richest member of Congress has a net worth of nearly $30 million, referred to the millions of dollars in bonuses and pay hikes announced by more than 100 companies in the wake of the new Trump tax cuts as “crumbs”, Fox News reported.
By Lew Fuller