Trump’s Carrier deal worthy of “banana” republic: Mexico official

But the factory has about 1,400 workers in Indianapolis, so that means 400 workers could still lose their jobs.

He toured the plant in Indianapolis and shook hands with workers on an assembly line.

The deal, negotiated by Vice President-elect Mike Pence and United Technologies CEO Greg Hayes, also includes $7 million in state tax breaks over 10 years, according to NBC News.

During the campaign, he had often pointed to the IN plant’s moving plans and a major result of poor Obama administration policies, and he pledged to revive USA manufacturing. It also will proceed with plans to close a second plant in Huntington, Ind., that makes electronic controls, moving 700 other jobs to Mexico.

That total matches other reporting that IN has provided $700,000 a year IN tax abatements to Carrier to reverse a decision to outsource jobs to Mexico, a political victory for the incoming Trump administration as Trump completed an early campaign promise.

“At a local level, there was not much that anybody was going to do to make global, publicly traded companies make a decision other than what they made for the benefit of their shareholders”, Fetters said.

In the election campaign, Trump vowed to impose hefty tariffs if Carrier did not reverse course on shifting jobs to Mexico.

“Big day on Thursday for IN and the great workers of that wonderful state”.

But his willingness to use government incentives as muscle in negotiations offers a preview of how Trump might handle similar situations in the coming years.

“That he wants to do this, to take time out of his schedule to fly out here and personally thank the people. shows what kind of man he is”, said Josh Kanowitz, 43.

Government and union officials say Carrier has estimated it will save about $65 million a year by shutting the plant and shifting its operations to Monterrey, in the state of Nuevo León, where wages average about $11 a day, plus benefits.

Mexican billionaire Carlos Slim said on Thursday that if Trump succeeds as US president, it would benefit major trading partner Mexico because of increased employment and USA economic growth. The message resonated with blue-collar voters in Midwestern states who swept Trump to his upset victory.

Even with Carrier’s apparent deal with the government, IN is far from out of the woods when it comes to job loss.

While campaigning, Trump frequently touted his plan to keep jobs in the United States, which involved taxing companies that move jobs out of the US.

Carrier said state “incentives” from IN were a key to its decision to stay put.

Since 2000, the United States has lost 5 million manufacturing jobs, so keeping 800 of them is not a big deal in the grand scheme of things.

During his campaign, Trump made the most visits to OH and Florida.

Some questions remain about the extent of the victory at Carrier, which announced this week that it will keep an Indianapolis plant open.

Another Carrier employee, TJ Bray, who supported Bernie Sanders, said, “I want to hear the details of the deal first, but I’m happy that most jobs are saved”. “Everybody is on everybody”, another employee told Indianapolis station WTHR.

Trump spokesman Jason Miller says Heitkamp “comes very highly recommended, very highly qualified as a proven leader and would be an asset in any role or capacity”.

Trump may have had some leverage over United Technologies, which also owns a company that supplies fighter jet engines and relies in part on USA military contracts.