LOS ANGELES, United States (AFP) — Disney announced Tuesday it will pay bonuses to 125,000 US employees and launch a new employee education program, joining other big companies in steering some funds from tax reform to employees.
The two initiatives represent a total allocation of more than $175 million in this fiscal year, the entertainment giant announced in a statement.
US hourly and non-executive salaried employees will receive a one-time $1,000 cash bonus in two payments in March and September, the company said. The payment will go to employees who have been with Disney since the start of 2018.
The educational program will be available to almost 88,000 hourly workers who can pursue higher education or vocational training. After an initial investment of $50 million, Disney will spend $25 million annually on the program.
“I have always believed that education is the key to opportunity,” Disney chief executive Bob Iger said. “Matched with the $1,000 cash bonus, these initiatives will have both an immediate and long-term positive impact.”
With the announcement, Mickey Mouse & company become the latest major firm to offer new employee benefits following the US tax reform passed just before December 25.
Earlier Tuesday, JPMorgan Chase announced $20 billion in new US investment, higher wages and plans to create 4,000 jobs.
And Walmart earlier this month said it would raise the minimum wage for US workers from $9 to $11 an hour from $9 and pay bonuses, citing the tax reform, which cut US corporate taxes to 21 percent from 35 percent. But the company also made public plans to close 63 Sam’s Club stores in the US.
Critics of US tax reform point out it could lead to an explosion of the government deficit while most of the benefits will flow to the wealthiest. And despite the recent announcements, many companies are expected to use the tax windfall to increase dividends and for share buybacks, rather than for investments or hiring.
© Agence France-Presse