Carrier Reaches Agreement to Keep Some Manufacturing Jobs In Indiana

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On December 1, President-elect Donald Trump, alongside Vice President-elect, and current Indiana Governor, Mike Pence, appeared at a Carrier Corporation plant in Indianapolis to announce that the company would keep roughly 800 jobs in Indiana that it had planned to move to Mexico. Carrier, whose parent company is United Technologies, had announced in early 2016 that they would be re-locating about 2,100 jobs to a plant in Mexico. The jobs that are being saved include those at the Indianapolis factory as well as at a United Technologies factory in Huntington, Indiana. Most of those jobs are on factory lines that build gas furnaces.

As an incentive to keep the jobs in Indiana, the state offered Carrier tax breaks of $7 million over 10 years. As part of the agreement, Carrier also promised to invest $16 million in its facilities in the state.

United Technologies’ decision to close the Carrier plant in Indianapolis became a national issue after a video of a manager announcing the layoffs went viral. President-elect Trump seized on the issue during the campaign as part of his focus on protecting U.S. manufacturing jobs. He pledged to prevent U.S. companies from sending jobs overseas and he promised, in particular, to persuade Carrier to keep their jobs in the United States.

President-elect Trump went to work on keeping his campaign promise after Election Day, phoning the chief executive of United Technologies. Carrier announced at the end of November that it was in negotiations with the incoming administration, and Mr. Trump tweeted that he was “working hard, even on Thanksgiving” to keep the jobs. While the company will still be sending about 600 of those jobs to Mexico, the incoming Administration hailed it as a victory that it was able to convince the company to keep some jobs here in the United States.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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