'Once-in-a-generation opportunity'

WILMINGTON – Working on the assembly line or in the offices of Wilmington-based Atlantic Packaging is not as glamorous or magical as inspiring smiles in the many departments of Disney.

But this week, employees at the two companies did reap the same reward from their employers.

Atlantic announced that it intends to give nearly 1,000 of its employees who have been on staff for more than a year a one-time $1,000 bonus, which would hit their bank accounts by Feb. 15. Disney made a similar move this week to reward 125,000 of its workers.

The companies, separated by thousands of staff and a stable of profitable animated characters, announced the decisions in response to new federal tax cuts -- trumpeted by President Donald Trump and Congressional Republicans -- that will benefit their bottom line. In recent weeks, Boeing, AT&T, Wells Fargo, Comcast, Bank of America and Walmart all made similar gestures to share the tax benefits with their employees.

For Atlantic Packaging, the bonuses represent a million-dollar investment for the privately owned company, which distributes packaging materials and operates manufacturing facilities for paper converting, printing and labeling products. But Atlantic president Wes Carter said after evaluating what Congress’ new tax bill meant for the company, this was the “most logical” way to invest the money it will save.

"Our most important, valuable asset is our people,” he said. “What’s made this company unique in the marketplace is our people and we see this as a once-in-a-generation opportunity.”

Atlantic Packaging has 16 locations, including two international sites in Honduras and the Dominican Republic. The Wilmington location is the company’s corporate headquarters, while the closest manufacturing plant is in Tabor City, Columbus County.

Following the announcement, Carter said he was flooded with calls and emails from employees expressing their gratitude and how the planned to use the money.

“A lot of them reiterated how much they value their jobs at Atlantic,” he said. “One employee said they were going to invest the money in becoming a full U.S. citizen.”

One of the first to send their gratitude Carter's way was Joanne Horn, an IT employee based in Charlotte, who knew immediately where her money will go.

"My immediate thought was my daughter’s tuition," she said. "It closes a gap for me because she is in her final semester at Greensboro College. It is always tight around the first of year with yearly expenses and coming off the holidays. But with this money, she will finish up her last semester without having any student loans."

Mutually beneficial

While the company’s bonuses are certainly good news for employees, Edward Graham, an economics professor at the University of North Carolina Wilmington, said businesses aren’t opening their checkbooks without getting something in return.

“They get to write it off on their taxes as a business expense,” he said.

Graham said these generous efforts are called costly signals and are used to boost confidence internally and externally.

“It’s signaling to the news-consuming public, the employees and all stakeholders that times are good and the future is bright,” he said.

Costlier signals, he said, would be permanent wage increases like Walmart announced recently.

While Atlantic Packaging might not be as big as some of the other companies that have announced bonus programs -- meaning it might not get as big a break on its tax bill as them -- Graham said size shouldn't matter in showing appreciation to employees.

“I think any forward-thinking, responsible owner would at least evaluate if this is possible for them -- no matter their size,” he said.

Graham said it is unclear if other smaller companies will follow suit because the big public announcements reverberate further through the news media and industries for publicly traded companies. Some businesses may feel they have to make similar moves if their direct competitors do because scoring goodwill can help when competing in the tight labor market, he said.

But for any company, Graham said a move like this has to be done at the right time, as not to jump the gun on a big investment it can’t back up.

“Enhancing compensation for employees is a good thing and how that is managed needs to be a well-choreographed dance because once it is done, you can't undo it,” he said.

For Atlantic's Carter, the thrill of rewarding the hard work of his employees still lingers days after giving the bonus program the green light.

"We knew the move would get attention, but it is a smart investment for us," he said. "And it's a heck of an opportunity to make an impact in the lives of our people."

Reporter Hunter Ingram can be reached at 910-343-2327 or Hunter.Ingram@StarNewsOnline.com.

Getting to know ... Atlantic Packaging

• Manufacturer and distributor of packaging products and equipment
• 16 locations, including in the Dominican Republic and Honduras
• Employs more than 1,000 people
• Privately owned company is headquartered in Wilmington
• Closest manufacturing plant to Port City is in Tabor City