Malloy Calls CVS Wage Hike CT “Fairness,” But Wage Hike Comes From Tax Cuts Malloy OpposesFebruary 8, 2018
The governor said of CVS Health's wage hikes: "Connecticut Fairness is good for the economy." Only problem? The wage hikes are a result of GOP tax cuts.
Gov. Dan Malloy (D-Conn.) released a statement on Thursday praising CVS Health’s decision to raise its starting wage to $11 per hour. The statement applauds CVS, and ties in Malloy’s new “Connecticut Fairness” slogan.
“I applaud CVS Health’s commitment to fairness and equity in the workplace. These three moves – raising their starting hourly wage, keeping health care premiums in check for employees, and implementing a new paid family leave program – are important steps toward ensuring and maintaining economic security for employees. This is more than just the right thing to do; it’s a smart business move. Happy and healthy employees are more productive. It’s why I’m calling on the legislature to increase the minimum wage, expand on our groundbreaking earned sick time legislation, and take further action toward pay equity. In short, Connecticut Fairness is good for the economy.”
There’s one big problem with Malloy’s decision to tie CVS’s decision to “Connecticut Fairness”: CVS raised wages because of GOP tax cuts Malloy vigorously opposed.
USA Today reported:
CVS Health is raising its minimum wage to effectively match recent increases at Walmart and Target as major national retailers jockey for workers in a tight job market and hand over a portion of their federal tax cut windfall to employees.
The largest U.S. drugstore chain said Thursday that it would hike the starting wage for hourly workers to $11 per hour. That equals recent increases at Walmart and Target.
…”As part of our ongoing commitment to the patients, customers and communities we serve, we said that we would invest our tax savings back into our business, and that’s exactly what we’re doing,” CVS CEO Larry Merlo said in a statement. “Today, we’re building on the investments we’ve been making in our employees, in their wages, benefits and career development.”
Malloy is opposed to the tax cuts, and blasted them in December:
…tax-raising Gov. Dan Malloy (D-Conn.) said in a statement that the bill, which gives the average Connecticut family an $835 tax cut, will “not provide relief to the middle class, but for the wealthiest few.”
Now that middle-class employees of CVS are seeing “relief,” though, Malloy appears happy to try to take credit.
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