FROM CNN: President-elect Donald Trump and Carrier have reached a deal that will keep nearly 1,000 factory jobs in Indiana, the company said on Tuesday.
Trump and Mike Pence will be in Indiana on Thursday to announce the deal, Carrier said.
The company, which is owned by defense contractor United Technologies, announced in February that it would close two Indiana plants — a Carrier plant in Indianapolis that employs 1,400 workers and a United Technologies Electronic Controls plant in nearby Huntington, Indiana, that employs 700.
Carrier did not elaborate on the terms of the deal, but it is on the record, as are most other major multinational businesses, as wanting to see a cut in corporate tax rates, especially as it applies to cash earned overseas.
The fate of the more than 400 remaining jobs in Indianapolis was not immediately clear. Nor was it clear whether the 700 jobs at the Huntington plan would be saved.
The company planned to send that work to Mexico starting next year, a move that would have saved it $65 million a year in labor costs, according to the union that represents the workers.
United Technologies is a leading defense contractor that benefits from billions of dollars in federal spending, so it needs to maintain good relations with the incoming Trump administration.
In response to a CNBC report that Carrier will receive Inducements from the state of Indiana, international trade attorney and Cato Institute Adjunct Scholar Scott Lincicome tweeted criticism of the deal.
“‘New inducements'” = Subsidies,” he wrote, adding “CONGRATULATIONS INDIANA TAXPAYERS! YOU INVOLUNTARILY BOUGHT AN INEFFICIENT AC FACTORY.”
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