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Carrier says it has deal with Trump to keep jobs in Indiana

01 December, 2016, 06:24 | Author: Lloyd Doyle
  • Carrier says it has deal with Trump to keep jobs in Indiana

Trump, who takes office on January 20, said on Thursday that he was "working hard, even on Thanksgiving" to get the plant to stay and said he was "making progress" on the issue. According to Fortune, 1,300 jobs are still going to Mexico, but at least 1,000 will stay in Indiana.

United Technologies Corp's Carrier unit said on Wednesday it got financial incentives from IN and a pledge from President-elect Donald Trump to improve the climate for business IN the United States IN exchange for keeping more than 1,000 jobs IN the state rather than moving them overseas.

The company attributed its decision to the incoming Trump administration and financial incentives provided by IN, which is something of a reversal, since earlier offers from the state had failed to sway Carrier from decamping to Mexico. The company wants to shift production to Mexico, where labor costs are much lower.

To critics who see other IN factories on the verge of closing, deals like the one at Carrier are unlikely to stem the job losses caused by automation and cheap foreign competition. Job cuts are scheduled over three years beginning in 2017. Trump's staff said Wednesday that Pence, who remains governor of IN and has a history of offering economic incentives to private industry, was heavily involved IN negotiations with Carrier, which makes heating and cooling equipment.

Throughout his campaign, Trump railed relentlessly against Carrier Corp.'s decision to ship 1,400 manufacturing jobs to Mexico, using it as an example of all that was wrong with the US economy and all that he would set right when he took office.

The prospect that the White House might directly intervene is also a concern to some economists.

Carrier became a go-to example that Trump used to represent problems facing American workers as manufacturing jobs leave the US.

Trump's staff also highlighted the president-elect's personal involvement, saying it was a sign of things to come as he works to keep jobs from fleeing. But most breaks he has offered in the past, including tax incentives and credits, would not need legislative approval.

For Trump, a challenge will be trying to duplicate the Carrier feat many times over to retain and increase the nation's 12.3 million manufacturing jobs.

Payroll services provider ADP said Wednesday that manufacturers shed 10,000 jobs in November.

One reason Jones is skeptical is that he saw how Trump falsely claimed he'd convinced the Ford Motor Co.to keep a factory in Kentucky, even though Ford said it had never planned to close the factory. He said that Obama created 805,000 jobs in manufacturing and that the figure is much higher if existing jobs that have been protected are included.

"If Trump's got any type of leverage we're guessing it would be, 'If you move these jobs out of this country then we're gonna make it hard or we're gonna take away any chance you got moving forward on government contracts'". President, we've made a decision to stay in the United States. He pledged to give up Oreos after Nabisco's parent, Mondelez International, said it would replace nine production lines in Chicago with four in Mexico.

As president, Trump also has the power to favor certain companies when it comes to government contracts.

Boak and Pace reported from Washington, Slodysko from Indianapolis.


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