Tax justice and labor advocates were among those who expressed outrage Monday at the news that General Motors—one of the corporate giants that benefited immensely from the Republican tax plan last year—would cut 15 percent of its workforce, shuttering production facilities in three states as well as Canada to trim costs.
The auto maker is closing five plants in Ohio, Michigan, Maryland, and Ontario, with plans to cut thousands of office jobs in January—slashing a total of 14,700 jobs.
The move comes less than a year after the Republican Party pushed through its tax plan, which offered $514 million tax break to the company. According to the advocacy group Not One Penny, $100 million of those savings went to enriching GM’s shareholders, contrary to the GOP’s claims that corporate benefits of the tax cuts would trickle down to workers in the form of raises and bonuses.
“General Motors’ decision to gut its workforce epitomizes the bad corporate behavior Republicans in Congress have incentivized for generations. Instead of using its massive tax savings to increase employee wages or invest in its workforce, GM is shuttering plants and cutting jobs to increase profits and further enrich shareholders,” said Ryan Thomas, a spokesperson for Not One Penny. “The American people will not forget that Republicans in Congress permitted these morally reprehensible and irresponsible actions.”
Meanwhile, GM has already spent much of the last year cutting its workforce, offering buyouts to 18,000 workers.
Sen. Sherrod Brown (D-Ohio) called GM’s decision “corporate greed at its worst.”
“The workers at Lordstown are the best at what they do, and it’s clear once again that GM doesn’t respect them,” Sen. Sherrod Brown (D-Ohio) wrote on Twitter, referring to the plant that would be closing in his home state. “Ohio taxpayers rescued GM, and it’s shameful that the company is now abandoning the Mahoning Valley and laying off workers right before the holidays.”
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