You have probably read Lauren Kelley’s article last week about the ways that General Electric continues to milk the system with impunity. The company continues to make massive profits, but thanks to some creative bookkeeping, the company paid no income taxes 2011 in the United States. That’s right, zero! Nothing! In fact, they were able to claim a tax benefit of $3.2 billion dollars on their 2011 taxes!
But this tax story is just the tip of the iceberg of corporations not paying US taxes and GE getting worker concessions during negotiations.
Mike Elk is reporting, “After GE paid no 2011 taxes in spite of huge profits, General Electric is going to ask 15,000 unionized workers in the U.S. to make huge concessions in bargaining coming up.”
Elk states that in negotiations with fourteen unions that represent 15,00 employees, the company is looking for further ways to cut costs and increase profits on the backs of its workers. Shareholders could make millions if the moves allow the stock price to move higher.
One of the major concessions that General Electric will be asking from its unionized workers is the elimination of the defined benefit pension provision for new employees. They will also ask to have existing health insurance plans replaced by low quality health savings accounts. These are large changes for traditional unions that do not want to be treated like hourly employees.
General Electric may also be asking their workers to accept a freeze on wages, so stay tuned.
What’s this? The company is making billions of dollars in profits, they’re not paying any income taxes for 2011, and they want to reduce the benefits of their workers? Outrageous! GE workers aren’t taking this lying down. “They are planning a rally with 10,000 workers from every part of the country at the company’s locomotive factory in Erie, Pennsylvania on June 4th,” says Elk. “Let’s show them our support.”
- Are Corporations Avoiding Taxes 2010? (2010taxes.org)
- Wesley Snipes: Failing To File Income Taxes (2010taxes.org)