Donald Trump announces deal to keep 1,000 factory jobs in the US while five times as many are laid off

Carrier is offered $7 million in tax incentives after negotiations with the President-elect's team


Friday 02 December 2016 13:57
Trump: 'It's a one-lane highway into Mexico. Nothing coming our way, everything going their way'

As Donald Trump announced a deal that would keep 1,000 factory jobs in Indiana, almost five times as many people are being laid off in the state due to competition.

The President-elect claimed an agreement with Carrier, an air-conditioning and furnace manufacturer, will result in half of the 2,100 jobs they planned to move to Mexico staying in the US.

The company has been offered $7m (£5.5m) in tax incentives after negotiations with Mr Trump’s team but critics have argued the deal could set a dangerous precedent as companies look for tax concession to save US jobs.

As Mr Trump proclaimed companies would not leave the US anymore, in Indiana alone, at least 3,660 people will lose their jobs because business is being moved abroad, according to a Reuters analysis of Labor Department filings.

The filings also show 960 workers employed by five companies in Indiana are set to lose their jobs being US companies seemingly cannot compete with cheaper imported goods.

Mr Trump however said thsi would not be the case: “These companies aren’t going to be leaving any more. They’re not going to be taking people’s hearts out,” the President-elect said.

“They’re not going to be announcing, like they did at Carrier, that they’re closing up and they’re moving to Mexico.”

During the presidential campaign Mr Trump highlighted potential Carrier layoffs as a symbol of people’s frustrations and guaranteed to rebuild the manufacturing industry.

Although Carrier will no longer be closing its plant in Indianapolis, another factory, owned by Carrier’s parent company, United Technologies, will be closing down in Huntington, Indiana, leading to 700 lost jobs.

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