UPS, Cigna, and Hostess announced massive bonuses and investments on Thursday thanks to the recently passed Tax Cuts and Jobs Act.
Health insurer Cigna announced on Thursday that they will increase their minimum wage to $16 per hour and will raise contributions to their retirement accounts due to the recently passed Tax Cuts and Jobs Act. More than 30,000 Cigna employees will benefit from Cigna’s expanded benefits.
Cigna chief executive David Cordania said in a statement, “It is because of our employees that Cigna continues to deliver on our mission to improve the health, well-being and sense of security of those we serve. Reinvesting a portion of savings from tax reform in our employees is a reinvestment in our mission.”
“We’ve entered 2018 with considerable momentum for growth in each of our businesses, as we continue to invest in market-leading capabilities to create differentiated value for our stakeholders,” Cordani added.
UPS also announced on Thursday that they will invest more than $12 billion to expand the company’s Smart Logistics Network, and increase UPS’s pension funding.
“This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act,” said David Abney, UPS chairman and chief executive. “We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and shareowners.”
Abeny continued, “We applaud President Trump and Congress for their bold action to improve the U.S. economy. Our investments will create new jobs, secure existing jobs and expand opportunities for our people. We are committed to remaining a preferred employer by continuing to provide industry-leading compensation and excellent career opportunities.”
“Tax reform is a tremendous catalyst,” said Abney. “We will continue to evaluate additional actions that benefit customers, employees and shareowners as we progress further in the year.”
Hostess Brands, the maker of Twinkies, announced on Thursday that they will offer their employees a sweet deal: employee bonuses and free Hostess snacks for one year.
Hostess will give more than 1,000 employees a bonus of $1,250, which includes $750 in cash and a $500 contribution to their 401(k). The food giant will give their employees a multipack “product of the week” for free; local Hostess bakeries will choose which snacks to give their employees each week.
C. Dean Metropoulos, the Hostess Brands executive chairman, said in a letter to employees:
The recent tax reform changes have given us the opportunity to review our benefit and compensation structure with an eye toward further investing in our workforce — our extraordinary team of employees who have and continue to help make Hostess so successful. As we have done in the past, the company’s management and board take great pleasure in sharing the company’s success with our employees.
Hostess Brands, which was founded in 1919, makes Twinkies, Ho Hos, cupcakes, and fruit pies.
Lowe’s, the home improvement retailer, announced on Thursday that they will provide over 260,000 of their workers bonuses of $1,000, along with other worker-related benefits, such as adoption assistance and paid parental leave.
President Donald Trump tweeted on Sunday, “Our economy is better than it has been in many decades. Businesses are coming back to America like never before. Chrysler, as an example, is leaving Mexico and coming back to the USA. Unemployment is nearing record lows. We are on the right track!”
Our economy is better than it has been in many decades. Businesses are coming back to America like never before. Chrysler, as an example, is leaving Mexico and coming back to the USA. Unemployment is nearing record lows. We are on the right track!
— Donald J. Trump (@realDonaldTrump) January 28, 2018