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Drudge Retort: The Other Side of the News
Tuesday, May 05, 2020

While thousands of their workers are filing for unemployment benefits, (many) companies rewarded their shareholders with more than $700 million in cash dividends. As the pandemic squeezes big companies, executives are making decisions about who will bear the brunt of the sacrifices, and in at least some cases, workers have been the first to lose, even as shareholders continue to collect.

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Executives say the layoffs support the long-term health of their companies, and often the executives are giving up a piece of their salaries. Furloughed workers can apply for unemployment benefits. But distributing millions of dollars to shareholders while leaving many workers without a paycheck is unfair, critics argue, and belies the repeated statements from executives about their concern for employees' welfare during the coronavirus crisis.

Caterpillar, for example, announced a $500 million distribution to shareholders April 8, about two weeks after indicating that operations at some plants would stop. The company declined to say how many workers are affected.

Levi Strauss announced April 7 that the company would stop paying store workers, and about 4,000 are now on furlough. On the same day, the company announced that it was returning $32 million to shareholders.

Stanley Black & Decker announced on April 2 that it was planning furloughs and layoffs because of the pandemic. Two weeks later, it issued a dividend to shareholders of about $106 million.

Steelcase officials announced March 24 that the company was reducing or suspending operations at plants in California, Michigan, Pennsylvania and Texas. The same day, it said it was issuing a dividend of about $8 million to shareholders.

Capitalism... it's what's for supper. Eat up peons, eat up!

#1 | Posted by tonyroma at 2020-05-05 01:50 PM | Reply | Newsworthy 1

Tldr
Aristocrats shed surplus serfs for profit.

#2 | Posted by bored at 2020-05-05 02:15 PM | Reply

We must give them more. Only minorities will be hurt.

#3 | Posted by fresno500 at 2020-05-05 04:49 PM | Reply

Disney did furloughs and suspended their dividend, so not many people are winning in that company

#4 | Posted by GOnoles92 at 2020-05-05 10:36 PM | Reply

The relief bills specifically forbade companies from using any government money for stock buy-backs. However, it never said anything about paying dividends.

OCU

#5 | Posted by OCUser at 2020-05-06 02:00 AM | Reply

All relief should have gone directly to the people.

#6 | Posted by BruceBanner at 2020-05-06 05:32 AM | Reply

one of the deeper secrets of voodoo economics is the "letting your money work for you" scenario... which is a lie... because there is always someone's labor involved... and for some reason they seem fine with the worker bees dying.

#7 | Posted by RightisTrite at 2020-05-06 08:11 AM | Reply

"We must give them more."

It's our national ethos.

"Only minorities will be hurt."

That's not accurate, though they will be hurt most by it. That's also part of our national ethos.

#8 | Posted by Hagbard_Celine at 2020-05-06 08:13 AM | Reply

It was pushing for payroll tax and capital gains tax cuts to help the unemployed on Twittler last night.

#9 | Posted by Nixon at 2020-05-06 08:30 AM | Reply

It was pushing for payroll tax and capital gains tax cuts to help the unemployed on Twittler last night.

#9 | POSTED BY NIXON

I was going to say they have no idea what they're doing but then I remembered that their goals aren't to actually help people.

The people are just political cover to be used for their own enrichment.

#10 | Posted by jpw at 2020-05-06 10:36 AM | Reply

COVID-19= License to STEAL!

#11 | Posted by getoffmedz at 2020-05-06 12:29 PM | Reply

Of course, if you're unemployed, you're not paying any 'payroll' taxes so there's nothing to cut. And the only 'unemployed' who'll want to take advantage of cuts in capital gains taxes are those executives to got a 'golden parachute' when they left their jobs.

The real purpose for cutting payroll taxes is to more quickly deplete the Social Security trust fund and to make Medicare even more costly, all so that they can justify cutting these 'social safety-net' programs while making the argument that it needs to be done to 'save' the programs from going broke.

OCU

#12 | Posted by OCUser at 2020-05-06 12:59 PM | Reply | Newsworthy 2

Once again, a national crisis turns out to be another way in which the rich get richer and the working person gets hosed. MAGA

#13 | Posted by moder8 at 2020-05-06 02:46 PM | Reply

Most corporations are too executive and board member heavy.
Instead of giving themselves bonuses and raises their jobs need to be eliminated.
They are the "fat" that needs to be cut.

#14 | Posted by aborted_monson at 2020-05-06 03:35 PM | Reply

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