Carrier confirms plant will stay in Indiana, White House not impressed

UPDATE 2 – 12/1, 7:34 p.m. EST: Both the Indiana Economic Development Corporation and Carrier Corp. said Thursday that the state offered $7 million in combined tax credits and training subsidies to keep the air conditioning manufacturer in Indianapolis after announcing a move to Mexico in February.

$5 million of the total is dependent on Carrier keeping over 1,000 plant jobs in Indiana at the rate of $30.91 per hour for the average worker.

In a Washington Post op-ed, Sen. Bernie Sanders wrote: “It is not good enough to save some of these jobs. Trump made a promise that he would save all of these jobs, and we cannot rest until an ironclad contract is signed to ensure that all of these workers are able to continue working in Indiana.”

Employers throughout the state are set to let approximately 5,000 workers go due to offshoring.


UPDATE — 4:38 p.m. EST: Politico is reporting that Indiana Economic Development Corporation (IEDC) board member John Mutz said Carrier is staying in the U.S. out of fears by parent company United Technologies that it would lose government contracts when Trump takes office if it went ahead with plans to move an Indianapolis air conditioning plant to Mexico. 

“This deal is no different than other deals that we put together at the IEDC to retain jobs, but the fact is that the difference is that United Technologies depends on the federal government for lots of business,” said Mutz. “The major factor that’s changed is we had an election.”


Air conditioning manufacturer Carrier Corp. confirmed Wednesday that it has reached an agreement with President-elect Donald Trump to continue operations in Indianapolis after announcing in February that it would be moving to Mexico.

Trump first hinted at the deal on Twitter Tuesday, which will save approximately 1,000 American jobs, saying that he will travel to Indiana on Thursday to commemorate the achievement. Indiana Governor and Vice President-elect Mike Pence is expected to join the announcement ceremony.

In an interview on CNBC early Wednesday, treasury secretary appointee Steven Mnuchin said the Trump administration is “going to have open communications with business leaders,” adding that the president-elect himself called to talk to parent company United Technologies CEO Gregory Hayes and tell him it’s “important to keep jobs here.”

The news met a chilly response from the current White House later on Wednesday, as Press Secretary Josh Earnest intimated that 800,000 U.S. manufacturing jobs were created during President Obama’s tenure.

Earnest went on to point out that by bailing out Detroit’s automobile manufacturers in 2009, Obama saved “more than a million” more jobs that would have been lost if the largest car companies were allowed to fail.

“The one difference would be the president-elect is talking about protecting jobs,” Earnest said. “The metric I’m using is actually creating jobs.”

Trump campaigned for president on the promise of lowering both business and personal income taxes, as well as cutting financial and environmental regulations with the goal of stimulating more economic growth in the U.S.

With a Republican-controlled Congress, pro-growth objectives are achievable but whether or not policy reforms translate to a stronger and more vibrant economy will be up the American people.


[AP] [The Hill] [Reuters] [Photo courtesy Multi News]