Saving jobs: Trump salutes Carrier _ and himself
More details are expected on Thursday when Trump visits the Carrier plant in Indianapolis.
In a statement, Carrier did not provide further details of the deal, but said incentives offered by in were an “important consideration” in the decision to keep production – and about 1,000 jobs – in the state. Carrier will invest $16 million to keep its manufacturing operations in IN, the report said.
The company announced in February that it planned to move the jobs to Monterrey, Mexico, next year.
For the second time since being elected president, Donald Trump used Twitter to claim he nearly single-handedly prevented American corporations from outsourcing jobs to other countries.
The company, which was expected to move its Indianapolis air-conditioning plant to Mexico (costing approximately 1,400 American jobs), said Tuesday that it had struck a deal with the incoming administration to keep almost 1,000 jobs in Indiana.
Though hundreds may keep their jobs, others apparently will not, since roughly 1,400 workers were slated to be laid off _ and many workers have not yet been told their fate. Trump and Vice President-elect Mike Pence plan to travel to the state Thursday to unveil the agreement alongside company officials. “We’d like to keep our jobs too”, Bousum said.
In addition to Carrier, United Technologies makes Pratt & Whitney jet engines and Otis elevators.
It is unclear what steps would have to be taken by federal authorities before Trump could retaliate against individual companies shifting jobs overseas.
The lesson corporations might take from Carrier case is that they can threaten to relocate manufacturing, for example, then demand that they get certain concessions and an audience with Trump, she said.
Seth Martin, a spokesman for Carrier, said Thursday that IN offered the air conditioning and furnace manufacturer $7 million IN tax incentives after negotiations with Trump’s team to keep some jobs IN the state. Reuters reported earlier this week Carrier also still intends to close a factory in Huntington, Indiana, that employs 700 people making controls for heating, cooling and refrigeration and move the jobs to Mexico by 2018. Joe Donnelly, a Indiana Democrat, urged him to take action to prevent other job losses.
Neither Trump nor Carrier has said yet what the workers might have to give up, or precisely which other threats or incentives might have been used, to get the manufacturer to change its mind.
Casting aside job interviews for senior cabinet positions yet to be filled, the president-elect will visit an air conditioning plant in IN which he repeatedly leaned on in public not to ship a planned 2,000 jobs to Mexico.
Keeping the Carrier plant open is a big win for the Hoosier State, though 400 local jobs may still go. Across the USA, the number of manufacturing jobs have fallen to 12 million – down from 20 million jobs at its peak in 1979.
On the street across from Carrier were clusters of endangered workers hoping to grab the attention of Trump and the national media so they could pose a simple question: What about us?
The company did not specify on what the incentives were, but such deals with state and local governments typically include tax breaks the governments believe will be offset by the additions to the workforce brought by the company.
Or perhaps Trump made broad policy promises, things like lower taxes or reduced regulations to entice Carrier to stick with Indiana.
Drew Greenblatt, owner of Baltimore-based Marlin Steel, is already seeing a revival of USA manufacturing – even before President-elect Donald Trump takes office next month. About 10 percent of that company’s business comes from defense contracts, and Trump may have threatened to pull some of those.