When Emerson Chairman and CEO and National Association of Manufacturers (NAM) Board Chair David Farr testified before Congress in May, he cited NAM survey results showing that 72 percent of manufacturers surveyed planned to increase wages or benefits following tax reform. For its part, Emerson already had delivered “a 2.9 percent general wage increase worth $42 million” as Farr told Congress. But now, Emerson is doubling down, announcing even more benefits for its employees.
In Emerson’s quarterly earnings release today, the company explained that because of tax reform, it would be able to offer new and improved benefits, including the following:
- Enhanced medical and dental plans, along with life, long-term and short-term disability plans
- Improved paid parental leave of 12 weeks for primary caregivers and two weeks for secondary caregivers
- Improved vacation plans
- A special one-time contribution to employees’ 401(k) retirement plans, worth a total of $24 million
- Improved retirement plans for certain business units
All told, Emerson is leading by example. Tax reform has spurred strong growth in the manufacturing industry over the past few months, with manufacturers creating jobs at a rapid pace. Today’s announcement is yet another powerful reminder of the many ways that manufacturing workers are seeing the benefits of tax reform in very real ways.
In the long run, for employees at Emerson and many other companies, tax reform will mean even more than bigger paychecks. It will mean better health coverage, more time with family and a more secure retirement. This is what manufacturers promised. And now, we’re keeping our promise.