Thursday, December 01, 2016


We know that Donald Trump is claiming credit for persuading United Technologies (UTC), the parent company of Carrier, to keep jobs in Indiana that were scheduled to move to Mexico. Those jobs will stay, or at least some of them:
In the end, UTC agreed to retain approximately 800 manufacturing jobs at the Indiana plant that had been slated to move to Mexico, as well as another 300 engineering and headquarters jobs. In return, the company will get roughly $700,000 a year for a period of years in state tax incentives.

Some 1,300 jobs will still go to Mexico, which includes 600 Carrier employees, plus 700 workers from UTEC Controls in Huntington, Ind.
In a Washington Post story, a question I've been wondering about is raised:
John Mutz, a member of the corporation's board and a former lieutenant governor ... said he had not reviewed the final terms of the agreement and could not provide details about how much money the company would receive or over what period.

“One of the key questions is how long will they be here,” he said.
Yes, because some of the workers in question were going to stay on for a while, even before the current deal:
The Carrier plant became a campaign issue after a video surfaced showing an executive telling workers about the plans to close the facility and move production to Monterrey over the next three years....

The Hartford, Conn., based company has emphasized that it gave the 2,000 affected Indiana workers three years' notice before the facilities are to complete the move to Mexico.
So the process was going to take three years. And when deals similar to this one have been made, how long have they held?
But the practice has mixed results. For instance, Dell closed a North Carolina plant in 2009 just five years after receiving millions in state tax incentives to open it. Production then moved to Mexico.
So have the jobs really been saved? Or is this just a temporary reprieve? Will Carrier continue to employ these workers significantly longer than it would have otherwise? We'll see.


Victor said...

It's a temporary repieve.

Also, this deal was Mike "The Dense" Pence laying a batting-practice fastball for t-RUMP to whack out of the ballpark, to make them both look good.
It's not a deal with the US Government, but Indiana's.
Pence could have done this before the election, but waited to ingratiate himself further with t-RUMP.

And after January 20th, Pence will be the de facto POTUS dealing with the day-to-day issues.
And t-RUMP will be the figurehead, getting any acclaim, making speeches and appearances, giving press conferences, and firing any and every person in his cabinet or on his staff for any blip in the road, or down-right tragedy/fuck-up.

If we think his original cabinet picks are horrifying, just wait until he starts screaming "YOU'RE FIRED!" at any and everyone who doesn't make this rancid turd of a human being look like a beautiful Faberge egg.

Before too long, we'll have the the commenters at Breitbart and Stormfront running departments.
And won't THAT work out well for all of us!

mathguy said...

Hey Steve M.,

OT to a degree, but a giant mea culpa from me. You expressed doubts about the election back in the spring, I did not, and you nailed it. I wish you had not. People were wrong to be complacent.

rclz said...

This sort of feels bail outish and we know that republican's hate to bail anyone out. I mean your giving a company money so it will keep workers jobs alive....of course these jobs aren't in depressed Detroit so I'm sure it will be fine.

I still think there should be a pool where we guess how many cabinet people, Chief of Staff, ect Trump goes through in a year.

Does anyone wonder how Jared Kushner gets along with the anti-Semites the new administration has brought out of the closet. Is Jared to the Jewish faith what kitchen Catholics are to Catholicism, or is he so rich he just don't think it will ever be a problem for him and like most republicans F everyone else?

Frank Wilhoit said...

Companies that get these tax breaks always break their end of the deal and there are no consequences.

Unknown said...

Carrier will use the tax incentive to speed up full automation at the plant and in 18 months "Well we tried but technology can not be held back. The plant stays but jobs are gone. Sorry".

CF2K said...

"Corporate giveaways" = "Republican 'handouts'"

maxk1947 said...

How long before West Virginia (for example) offers Carrier $800.000/year and a minimum wage workforce and other enticements to relocate? UT (big employer here in CT) seems to make a habit of shopping its manufacturing around the country, much less Mexico.

Grung_e_Gene said...

Now comes the awesome task of slashing 700k a year from the Indiana budget to make up the difference, Trump was right I'm already tired of this winning.