FedEx announces wage increases, bonuses amid tax reform
FedEx announced wage increases, employee bonuses and pension funding on Friday, citing the new Republican-backed tax-reform plan.
The company announced that two-thirds of $200 million in increased compensation will go to hourly employees, while the remainder will be put toward performance-based incentive plans for salaried employees.
FedEx also said $1.5 billion will be put toward the company’s pension plan and another $1.5 billion would go toward expanding the company’s hub in Indianapolis.
“FedEx believes the Tax Cuts and Jobs Act will likely increase [gross domestic product] and investment in the United States,” the company said on its website.
President Trump signed the GOP-backed tax plan, which decreases the corporate tax rate from 35 percent to 21 percent, in December.
FedEx is the latest company to announce benefits as a result of tax reform.
Home Depot said on Thursday it would be giving a $1,000 bonus to employees who have worked at Home Depot at least 20 years, according to CNBC.
Starbucks announced new raises for its employees on Wednesday, while JPMorgan Chase and Disney said on Tuesday they would give their employees raises and bonuses as a result of tax reform.
Trump cited the gains in a tweet promoting the plan earlier this week.
Tremendous investment by companies from all over the world being made in America. There has never been anything like it. Now Disney, J.P. Morgan Chase and many others. Massive Regulation Reduction and Tax Cuts are making us a powerhouse again. Long way to go! Jobs, Jobs, Jobs!
— Donald J. Trump (@realDonaldTrump) January 24, 2018