The decision by Stanley Works to drop its infamous plan to avoid paying U.S. corporate taxes by moving its mailbox to Bermuda is a promising example of one company rejecting financial gimmicks.

There is no question that Stanley Works reversed its previous goal to move to Bermuda only because of the unprecedented pressure brought directly on the company's CEO and members of its board of directors.

Just this Monday, 300 Stanley Works employees, union members and other New Britain residents joined Machinists union President Tom Buffenbarger and me at a rally to demand that Stanley stop the Bermuda scam. Activists distributed leaflets in the neighborhood of Stanley Works' CEO John Trani, Stanley workers issued a letter to Stanley's board of directors demanding they drop the plan to move to Bermuda, Machinists members filed a suit charging that Stanley Works violated 401(k) participants' rights under ERISA, and the AFL-CIO directly lobbied members of the Stanley Works' board of directors. On Wednesday, a busload of Stanley Works employees rode to a rally in Boston outside the headquarters of Fidelity, the largest shareholder in Stanley Works, demanding that the company reject Stanley's plan.

The Bermuda loophole allows companies that operate, hire employees and sell products in the United States to enjoy everything about the American economy without paying taxes. It would be illegal for an individual to live and work in the United States and refuse to pay taxes, but the government has provided a special exclusion for corporations. Bermuda also has a less strict set of corporate laws that restrict shareholder rights. At a time when confidence in U.S. business practices is at a troubling low, taking the company to Bermuda to avoid taxes and U.S. laws is just wrong.

The AFL-CIO is committed to fighting for corporate reform by closing the loopholes in Washington and changing "business as usual" company by company.

For Information Contact: Kathy Roeder (202) 508-6947