USW: Bonus Payments to Newport News Workers Highlight Imbalance in Republican Tax Plan

News provided by

Feb 15, 2018, 02:55 ET

PITTSBURGH, Feb. 15, 2018 /PRNewswire-USNewswire/ -- Huntington-Ingalls today announced that it would pay its employees a $500 bonus in recognition of the reduction in the Republican corporate tax cut. USW-represented workers at Newport News Shipbuilding are among those who will receive the bonus.

"Our members will gladly accept these bonuses," said Fred Redmond, USW Vice President and Chair of the Union's Bargaining Committee at Newport News. "However, they would prefer permanent wage increases commensurate with their being the best ship builders in the world.

"This $500 bonus is a fraction of the money being paid to shareholders and executives. Let's not forget who does the work. The average employee will see a one-time check of about $350, after federal withholding and payroll taxes. That doesn't go very far for a working family. Do the math. It's a dollar a day."

The Republican corporate tax cut will reduce the company's taxes by over $100 million next year, if it is as profitable in 2018 as 2017. This bonus will cost Huntington-Ingalls less than one-fifth of this windfall. Even Walmart has been more generous.

"Tax cuts and one-time bonuses do nothing to address the problem of income inequality," said USW International President Leo W. Gerard. "In fact, working families will lose more ground as a result of congressional Republicans' decision to pass the largest taxpayer-funded corporate cash giveaway in history.

"Bonuses are not the same as permanent wage increases. These tax cuts will continue to benefit the company for years to come. Workers deserve a guarantee that they will benefit as well."

The USW represents 850,000 workers in North America employed in many industries that include metals, rubber, chemicals, paper, oil refining and the service and public sectors. For more information: www.usw.org.

CONTACT: Fred Redmond (412-562-2307)
[email protected]

SOURCE United Steelworkers (USW)