AT&T to give $1000 bonuses to 200K employees after tax bill

AT&T will be giving about 200,000 employees a $1,000 bonus in response to today's passage of the tax reform bill that cut corporate taxes, among other things.

"This is a capital-freeing event", AT&T Chief Executive Officer Randall Stephenson said of the tax bill at an Economic Club of NY luncheon on November 29.

The telecom giant said in a press release Wednesday the bonuses will go to all union-represented, non-management and front-line managers.

AT&T's latest announcement comes on the heels of a December 14 agreement struck between the company and the Communications Workers of America. "So that's pretty good", he said.

"We believe tax reform is good for our USA economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners", said President and CEO Tim Sloan in a company release. "Unions remain the most effective means for working people to stand together and achieve wage growth and keep good jobs in the U.S".

U.S. President Donald Trump speaks during a rally at the St. Charles Convention Center on November 29, 2017 in St. Charles, Missouri.

"Results will speak for themselves, starting very soon", Trump tweeted on Wednesday.

Well, the corporate tax rate is being cut by 40 percent; that's the centerpiece of the new bill.

Boeing has also said it will invest an additional $300m.

AT&T isn't alone in touting its plans to spend a portion of its windfall on workers - Boeing and Fifth-Third Bank have also released plans.

The moves come as AT&T gears up for a fight with the federal government.

Fifth Third Bancorp said it would raise its minimum hourly wage for all employees to $15, with 3,000 hourly employees benefiting from the hike. "In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees". Some critics, though, have been quick to suggest that the company's vociferous support of the bill is primarily an effort to curry favor with the Trump administration and complete a merge with Time Warner that was blocked last month.

  • Eleanor Harrison