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Thursday, August 17, 2017

WASHINGTON (Reuters) – United Technologies Corp said on Wednesday it will retain more than 1,000 jobs at a U.S. Carrier Corp plant that was to close after receiving state financial incentives and a pledge to boost the business climate by the incoming Trump-Pence administration.

The deal was announced on Tuesday but details were disclosed on Wednesday. It came about after talks between the company’s chief executive, President-elect Donald Trump and Vice President-elect Mike Pence, the Indiana governor.

The company said the announcement was “possible because the incoming Trump-Pence administration has emphasized to us its commitment to support the business community and create an improved, more competitive U.S. business climate. The incentives offered by the state were an important consideration.”

Trump, who will tout the deal at an event at Carrier’s Indianapolis plant on Thursday, had vowed during the campaign to impose hefty taxes if Carrier moved jobs overseas.

The deal will save about half of the 2,100 jobs that Carrier’s parent company, United Technologies, announced in February it would cut in closing two Indiana plants. Carrier also vowed to make “significant investments to continue to maintain a world-class furnace factory.”

Carrier produces heating, air-conditioning and refrigeration products.

The company declined to disclose the size of the incentives, but an Indiana state official told Reuters they were modest. “It’s a modest state tax credit utilizing existing state tax tools; nothing new. It would be the same kind of package that would be considered for any other company that would come in,” said the source, who spoke on condition of anonymity because the incentives have not yet been made public.

The company still plans 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.

The Indianapolis Business Journal quoted the chairman of the Indiana Economic Development Corp, John Mutz, saying that United Technologies was motivated by the potential of losing a “favorable relationship with federal contractors.” Carrier declined to comment.

Hartford, Connecticut-based United Technologies has significant U.S. military business contracts that account for about 10 percent of its more than $56 billion in annual revenue.

(Reporting by David Shepardson in Washington; Additional reporting by Tracy Rucinski, Karen Pierog and Renita Young in Chicago; Editing by Lisa Shumaker and Matthew Lewis)

IMAGE: U.S. President-elect Donald Trump gestures as Vice President-elect Mike Pence applauds (L) at their election night rally in Manhattan, New York, U.S., November 9, 2016. REUTERS/Mike Segar

6 Responses to Read The Fine Print: Carrier Deal Is Not A Permanent Solution

  1. It’s been 1 yr since I decided to quit my office job and i couldn’t be happier now… I started doing a job online, over a website I found online, several hrs each day, and I earn much more than i did on my last job… Paycheck i got for last month was for 9 thousand bucks… Superb thing about this job is that now i have more time with my family…

  2. What really motivated Carrier to leave some of its operations in Indiana, instead of moving them all to Mexico, is the fact that its parent company, United Technologies, is a large Federal government contractor, and could lose some of its business if they reject a quid pro quo with the incoming Trump administration. It really sounds disingenuous to believe that Carrier changed its plans because they got modest tax incentives from the Indiana state government, and because Trump reassured them that a more pro-business environment is around the corner.
    Another possibility, which Trump cannot disclose for obvious reasons, is that he may have promised them Federal government subsidies or tax breaks, or preferential contract bidding, if they keep at least some of the jobs they were planning to outsource in the USA. Needless to say, making promises of that kind without congressional legislative authority, and appropriations, would be highly unethical. The same goes for a quid pro quo involving Federal government contracts and procurement.
    In any case, this is all funny when you consider how the far right dismissed the fact that over 12 million new jobs have been created during President Obama’s tenure. Then again, these are the same guys that are lauding a 500 point increase in the DOW Index as something of mythical proportions, after dismissing the fact that the DOW rose from 7,000 to 18,500 points under Obama. Are these manifestations of cynicism, political hyperbole, or Pythagorean challenges?

      • I would not be surprised if he violated every appropriations, contracting, and procurement laws. Somebody must have told them that what he did was illegal, and they are now coming up with the illusion that the reason Carrier decided to stay is because the Messiah promised them morning in America again!

    • We should know the answer when “open and transparent” Trump releases his tax info! Oh, wait…..he wants to release that info so badly but he can’t because the bad IRS is still auditing him. His hands are tied. Bad IRS! So bad, so sad!

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