UPS, Lowe’s, Cigna, Thermo Fisher Scientific Announce Pay Raises, Bonuses Due to Trump’s Tax Cut Plan

By Melanie Arter | February 1, 2018 | 1:42pm EST

( – Four more companies have announced they are giving out bonuses, pay raises and making investments because of the president’s tax cut plan.

UPS announced Thursday that it is making “more than $12 billion in investments to expand the company’s Smart Logistics Network, significantly increase pension funding, and position the company to further enhance shareowner value,” and the decision is “an outgrowth of the opportunity for tax savings create by the Tax and Jobs Act.”

“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,” UPS Chairman and Chief Executive Officer David Abney said in a statement on the company’s website.

“Through our current and future actions, we will enhance UPS’s position as the leading logistics provider by expanding capacity and technology investments to help customers meet their needs for dependable, day- and time-definite service with enhanced visibility and flexibility,” Abney said.

UPS plans to invest another “$7 billion over three years for the construction and renovation of facilities, to acquire new aircraft and ground fleet vehicles, and to enhance the information technology platforms required to support the network, manage the business and power new customer solutions.”

“We applaud President Trump and Congress for their bold action to improve the U.S. economy,” Abney continued.  “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.”

Meanwhile, Lowe’s is giving more than 260,000 hourly employees bonuses of up to $1,000. In addition, beginning May 1, the company will expand benefits packages by adding adoption assistance, 10 weeks of paid maternity leave, two weeks of paid parental leave, and faster eligibility for health benefits all due to the new tax law, according to an internal company memo, CNBC reported.

The bonuses will be paid out based on the employee’s length of service. Those with less than two years of service will receive a $150 bonus for full-time employees and $75 for part-time employees. Full time employees with two to four years with the company will receive $200, while their part-time counterparts will receive $100, CNBC reported.

Full-time Lowe’s hourly employees with five to nine years with the company will get a $300 bonus, while part-time employees with five to nine years will get $150. Full-time employees with 10 to 14 years with the company will get a $500 bonus, and part-time employees with 10-14 years of service will get $250.

Lowe’s employees with 15-19 years of service will get $750 for full-time employees and $375 for part-time. And employees with 20 or more years will get $1,000 for full-time employees and $500 for part-time.

Similarly, Cigna announced Wednesday that it plans to increase its minimum wage to $16 an hour across its U.S. employee base and credited the new tax cut law. Cigna also plans to raise the salaries of other employees “above the $16 an hour level, largely to front line employees,” the company said in a press release.

Cigna also plans to add “$30 million to its 401(k) program to match an additional one percent of employee compensation contributed to the 401(k) in 2018,” benefitting the retirement accounts of over 30,000 employees.

“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,” Cigna President and Chief Executive Officer David Cordani said in a statement. “Reinvesting a portion of savings from tax reform in our employees is a reinvestment in our mission.”

And lastly, Thermo Fisher Scientific Inc., the world leader in serving science, announced Wednesday that it is making additional investments totaling $50 million, which includes employee bonuses and other company investments, due to the tax reform law.

Each of the company’s roughly 68,000 eligible non-executive employees worldwide will receive a one-time bonus of $500, totaling $34 million. Furthermore, the company will make an investment of $16 million “to accelerate key breakthrough R&D programs and also to increase the impact of the company's sustainability initiatives and philanthropic activities in support of STEM (Science, Technology, Engineering and Math) education.”

"Thermo Fisher will benefit from tax reform, so we chose to use this unique opportunity to recognize the commitment of our colleagues who work hard every day to fulfill our Mission – to enable our customers to make the world healthier, cleaner and safer," Thermo Fisher Scientific President and Chief Executive Officer Marc Casper said in a statement. "We also plan to use the benefit to fuel important programs that will strengthen our ability to serve our customers and the communities where we live and work." 


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