Trump's deal would keep Carrier jobs in the U.S. - WFSB 3 Connecticut

Trump's deal would keep Carrier jobs in the U.S.

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Trump's deal would keep Carrier's jobs in the United States (WFSB) Trump's deal would keep Carrier's jobs in the United States (WFSB)
HARTFORD, CT (WFSB) -

On Wednesday, Eyewitness News took a closer look into the deal between President-elect Donald Trump and Carrier Corporation.

Carrier is under the umbrella of Connecticut-based United Technologies Corporation.

The deal would keep more than 1,000 jobs from moving to Mexico, in exchange for some incentives.

Jobs are probably one of the most important issues, and Trump highlighted that on the campaign trail when he said he wanted to punish companies for moving jobs to other countries.

That rhetoric has faded a bit and Trump may do what others have been doing.

"He has some leverage but if he's going to punish companies he doesn't like, that could be a slippery slope for a president to have,” said Greg Bordonaro, an editor with the Hartford Business Journal.

He said Trump may be starting to realize he may have to court businesses.

Trump plans to be at Carrier’s headquarters in Indianapolis on Thursday to announce a deal to keep the company from moving a majority of its 2,000 jobs to Mexico.

In exchange, Carrier may be getting a break on regulations and some tax incentives.

In Connecticut, republicans and democrats have voted for hundreds of millions in tax incentives, credits and loans to keep jobs.

For AGR Capitol Management, a $35 million loan; Sikorsky, a $220 million loan, and Pratt & Whitney, a $400 million loan.

It may come at a cost.

"Because all of a sudden all these companies will be at your door wanting incentives and saying we are going to move jobs elsewhere,” Bordonaro said.

For states offering incentives, it can be tricky. In the long term, Connecticut will benefit by having the jobs but in the short term, it’s a loss of revenue and that means less money to balance the state’s budget.

As for Carrier, they said the incentives offered were an important consideration.

In a statement, Carrier said “Carrier has had very productive conversations in recent days with President-elect Trump and Vice President-elect Pence. We have negotiated an agreement with the incoming administration that we believe benefits our workers, the state of Indiana and our company.

We are announcing today that Carrier will continue to manufacture gas furnaces in Indianapolis, in addition to retaining engineering and headquarters staff, preserving more than 1,000 jobs. 

Carrier will also designate its Indianapolis manufacturing facility as a Center of Excellence for gas furnace production, with a commitment to making significant investments to continue to maintain a world-class furnace factory.

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 incentives offered by the state were an important consideration.

 This agreement in no way diminishes our belief in the benefits of free trade and that the forces of globalization will continue to require solutions for the long-term competitiveness of the U.S. and of American workers moving forward.

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