Trump’s tax cuts become a labor issue
Unions are pushing companies to reveal plans for windfalls
Unions are pressing companies they bargain with to disclose details of what they’re doing with savings from the Trump tax cuts, the latest move by organized labor to pressure corporations to pass along their windfall from the overhaul.
Four unions have recently filed formal information requests with 11 companies, including American Airlines, AT&T and PepsiCo subsidiary Frito-Lay, requesting disclosure of the companies’ plans for the cash freed up by the tax cuts.
The labor groups say failure to comply could lead to the filing of complaints with the National Labor Relations Board, which enforces the federal labor law requiring companies to provide unions that represent their employees with information germane to collective bargaining.
“President Trump and the Republican Congress promised that billions of dollars in corporate tax giveaways would ultimately raise wages and brings jobs back from overseas, but a union contract is the only way to get that promise in writing,” Communications Workers of America President Chris Shelton said in a statement.
The requests seek disclosure of what each company’s estimated gains from the tax revamp will be, how much they will spend on stock buybacks, how much capital investment they intend to make in the U.S. and abroad, and how many U.S. jobs they plan to create or bring back from other countries.
One of the recent requests has already been rebuffed. In a letter to CWA last month, Randall White, AT&T’s Midwest labor relations vice president, wrote, “Because of the stated purpose for your inquiries, your requests are not relevant to the bargaining relationship between the company and the CWA.”
White also told the union that it was seeking “irrelevant, immaterial” information.
Since passing their tax overhaul in December, Republicans have cited bonuses granted to employees at companies including Walmart and AT&T as evidence of the bill’s broad benefits.
“With 3.5 million Americans receiving bonuses or other benefits from their employers as a result of TAX CUTS, 2018 is off to a great start!” President Donald Trump tweeted on Feb. 2.
Democrats have countered that the legislation was skewed in favor of the wealthy, and any boosts to working class paychecks are “crumbs” compared to the billions in handouts to big corporations.
The tax bill has also become a flashpoint in negotiations between Walt Disney Co. and a coalition of unions representing theme park workers in California and Florida, which filed Labor Board complaints last month accusing the company of discriminating against union members who are currently in contract talks.
By announcing special $1,000 tax-cut bonuses for employees but holding them “hostage” from those in negotiations, the company violated labor law, union leaders alleged.
In a statement last month, Disney said that for union members, the bonus would be part of overall contract negotiations.
“We presented fair and compelling offers to unions on both coasts, and we hope they will reach timely agreements with us on behalf of their members,” the company said.