(Adds reaction from U.S. senator)
By David Shepardson
WASHINGTON Nov 29 United Technologies Corp
has reached a deal with President-elect Donald Trump and
Vice President-elect Mike Pence to keep close to 1,000 jobs at
its Carrier Corp air conditioner plant in Indianapolis, roughly
halving the number of U.S. jobs it planned to move to Mexico.
The deal, announced by Carrier on Twitter late on Tuesday,
is a victory for Trump, who campaigned hard on keeping jobs in
the United States and specifically criticized Carrier for
shipping jobs overseas, messages which appealed to blue-collar
workers in the Midwest.
"I will be going to Indiana on Thursday to make a major
announcement concerning Carrier A.C. staying in Indianapolis,"
Trump tweeted late on Tuesday. "Great deal for workers!"
Company officials, Trump and Pence, who is the governor of
Indiana, will announce some of the deal's terms on Thursday, a
source familiar with the matter told Reuters.
Indiana state officials were involved in the talks, but it
was unclear what, if any, inducements the state may have made to
encourage Carrier to keep the jobs in the United States.
Carrier's parent, United Technologies, has a strong
incentive to keep good relations with Trump and his incoming
administration, given that a portion of its estimated $57
billion revenue this year will come through U.S. military
contracts at its Pratt & Whitney and UTC Aerospace Systems
Carrier announced plans in February to close an air
conditioner factory in Indianapolis with the loss of 1,400 jobs.
It said a further 700 jobs would be cut from another plant in
Huntington, Indiana, northeast of Indianapolis.
The company planned to move the jobs to Monterrey, Mexico,
starting in 2017. Local union leaders said Carrier told them it
would pay Mexican workers $3 an hour compared with more than $20
for their U.S. counterparts.
The announcement prompted attacks from Trump during his
campaign, and he vowed to impose hefty taxes on imported Carrier
products if it did not reverse the move.
He predicted in February the company would call him to say
"Mr. President, Carrier has decided to stay in Indiana," and
promised the chances of the plant staying open was "100
As recently as 10 days ago, Carrier insisted it had no plans
to reverse course, but then acknowledged on the Thanksgiving Day
holiday on Nov. 24 that it was in talks with the Trump
Trump has promised to keep U.S. jobs from moving overseas by
renegotiating or withdrawing from trade agreements and imposing
tariffs on foreign-made goods.
But it is not clear he can reverse broader trends that have
led to the loss of more than 5 million U.S. manufacturing jobs
Democratic Indiana Senator Joe Donnelly praised the
announcement by Carrier to keep jobs in the state, but said
"there are at least two other companies currently planning to
move Hoosier (Indiana) jobs out of the country. We need to
change our laws to encourage companies to grow here at home."
Carrier is just one of many U.S. manufacturers moving jobs
to Mexico. However, videos of a company official delivering the
news to the Indianapolis plant's stunned workforce, posted on
YouTube, provided a vivid look at the pain and anger such
Earlier this month, Ford Motor Co made a decision to
keep production of a Lincoln sport utility vehicle in Kentucky,
which Trump claimed as a victory for keeping the plant in the
United States, even though Ford never had plans to move the
entire factory to Mexico.
(Reporting by Emily Stephenson and David Shepardson in
Washington and Sruthi Shankar in Bengaluru; Editing by Sandra
Maler and Bill Rigby)