BY AVERY ANAPOL - 02/01/18 10:58 AM EST
Hostess gives employees $1,250, free snacks after GOP tax cuts
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Hostess Brands Inc. announced it will give workers one-time bonuses of $1,250 and one year of free snacks as a result of the new GOP tax legislation.
The company produces bakery snack cakes such as Twinkies, Ho Hos, Zingers and Sno Balls. Each week this year, a representative from one of the company’s bakeries will choose a different product, which employees will take home in multi-packs, according to Bloomberg.
Workers will receive the monetary bonus in the form of $750 in cash and a $500 contribution to their 401k.
Hostess Executive Chairman C. Dean Metropolous told Bloomberg in a statement that the changes to the tax plan have allowed the company to alter its benefits structure.
“The company’s management and board take great pleasure in sharing the company’s success with our employees,” he said.
Hostess is the latest in a string of companies who have said they will use the large corporate tax cut in the new GOP tax law to invest in their workers.
Starbucks, Disney, Home Depot, JP Morgan Chase and others have announced wage raises, one-time benefits or other bonuses for employees.
UPS and Lowe’s on Thursday also announced changes. Lowe’s will expand benefits for employees and pay out bonuses of up to $1,000. UPS will boost pension funding as part of $12 billion in investments.
Democrats and other critics of the GOP tax law have said the changes will add to the deficit, and won’t benefit most Americans. In a recent Reuters/Ipsos poll, only 2 percent of respondents said they were receiving a bonus or pay increase as a result of the new law.