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Updated 06/16/2009 03:40 PM

Reynolds American workers rally over cigarette tax hike

By: Adrianne Flores

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WINSTON-SALEM – Hundreds of Reynolds American employees reported for duty early Tuesday to protest Gov. Bev Perdue’s proposal to raise the cigarette excise tax $1 per pack to help close the state’s $4 billion budget deficit.

More than 400 workers gathered in the Deacon Stadium Parking lot by dawn for the hour long trip ahead. The crowd shouted, “No more taxes. No more taxes," as they prepared to board the buses.

Employee Randy Thompson said he went to support his company.

"The state is in trouble – a big budget deficit I understand and certainly steps have to be taken to close that deficit one way or another. But I think to add a tax on one group of people just because they consume a legal product is not the right way to go," he said.

Cheryl Scott said she’s very concerned about the company’s future.

"We've got to keep our company alive,” she said. “And the taxes that keep getting raised it's just, it's just hard on us."

"We're going to Raleigh to send a very clear message to policy makers that the tobacco industry in the state is a very important economic engine," Reynolds spokesman Frank Lester said.

To make sure they drove home the message, they brought Winston-Salem Mayor Allen Joines along.

"Reynolds and jobs are synonymous to Winston-Salem. They're a huge employer here for our city and been great corporate citizens contributing financially to charitable causes so to me it's important for me to support the company, but more importantly to support the employees."

According to Lester, the company feels so strongly about their position that they not only gave their employees the day off to protest, but they also payed them for it.

"We think it's worth it. Our employees are frustrated,” Lester said. “They see across the country the federal government just raised the tax 62 cents per pack on April 1. That in and of itself is expected to cost 3,000 jobs in the state of North Carolina."

Workers hope Tuesday's rally will convince the governor to put the brakes on the plan.