NewsDecember 1, 2016
WASHINGTON -- In persuading Carrier to keep hundreds of jobs in Indiana, President-elect Donald Trump is claiming victory on behalf of factory workers whose positions were bound for Mexico. But the scant details that have emerged so far raise doubts about the extent of the victory...
By JOSH BOAK, BRIAN SLODYSKO and JULIE PACE ~ Associated Press
Air-conditioning units are stacked outside the Carrier Corp. plant Wednesday in Indianapolis.
Air-conditioning units are stacked outside the Carrier Corp. plant Wednesday in Indianapolis.Darron Cummings ~ Associated Press

WASHINGTON -- In persuading Carrier to keep hundreds of jobs in Indiana, President-elect Donald Trump is claiming victory on behalf of factory workers whose positions were bound for Mexico. But the scant details that have emerged so far raise doubts about the extent of the victory.

At Carrier's Indianapolis plant, the deal spares about 800 union workers whose jobs were going to be outsourced to Mexico, according to federal officials who were briefed by the heating and air-conditioning company.

This suggests hundreds still will lose their jobs at the factory, where roughly 1,400 workers were slated to be laid off.

Also, neither Trump nor Carrier has said what the workers might have to give up or precisely what threats or incentives were used to get the manufacturer to change its mind.

"There's excitement with most people, but there's a lot of skepticism and worry because we don't know the details," said TJ Bray, 32, who has worked for Carrier for 14 years and installs insulation in furnaces. "There's a few that are worried. And there's still a few that don't even believe this is real. They think it's a play, a set-up or a scam."

Sen. Joe Donnelly, an Indiana Democrat, said he, too, has lingering questions about what the announcement could mean for the workers.

"Who is going to be retained? What is the structure there will be for the retention? What is going to be put in place?" Donnelly said. "Are these the same jobs at the same wage? I would sure like to know as soon as I can."

Fuller answers could emerge today, when Trump and Vice President-elect Mike Pence, who is ending his tenure as Indiana governor, are to appear with Carrier officials in Indiana.

On the campaign trail, Trump threatened to impose sharp tariffs on any company that shifted its factories to Mexico. And his advisers since have promoted lower corporate-tax rates as a means of keeping jobs in the U.S.

Trump may have had some leverage because United Technologies, Carrier's parent company, also owns Pratt & Whitney, a big supplier of fighter-jet engines that relies in part on U.S. military contracts.

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Carrier said in a statement more than 1,000 jobs were saved, though that figure includes headquarters and engineering staff that were likely to stay in Indiana.

The company attributed its decision to the incoming Trump administration and financial incentives provided by Indiana, which is something of a reversal, since earlier offers from the state had failed to sway Carrier from decamping to Mexico.

"Today's announcement is 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 company said.

In February, United Technologies said it would close its Carrier air-conditioning and heating plant in Indianapolis and move its manufacturing to Mexico.

The plant's workers would have been laid off over three years, starting in 2017.

Whatever deal Trump struck with Carrier does not appear to have salvaged jobs at a separate branch of United Technologies in Huntington, Indiana, that makes microprocessor-based controls for the heating, air-conditioning and refrigeration industries.

That branch will move manufacturing operations to a new plant in Mexico, costing the city 700 jobs by 2018.

Donnelly said he worries about other factory job losses threatening his state.

Bearing maker Rexnord, which has a factory near the Carrier plant in Indianapolis, plans to lay off about 350 workers.

And electronics manufacturer CTS plans to eliminate more than 200 jobs at its Elkhart plant, he said.

Union leaders who represent the Carrier workers were not involved in the negotiations the Trump team had with their employer.

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