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Fewer jobs, but plant remains open

Jon Greenberg
By Jon Greenberg July 15, 2020

In February 2016, Carrier Corp. announced it would close an air conditioner plant in Indianapolis and move the jobs to Mexico. Candidate Donald Trump quickly said that wouldn't happen on his watch and in April, made that a firm promise. 

Carrier's announcement came on top of a plan to close another plant in Huntington, Ind., which it did shut down. Trump focused only on the Indianapolis facility. In July 2016, the union and Carrier said they had struck a deal that would preserve some jobs, but the number was unclear.

Three weeks after winning the election, Trump and Vice President-elect Mike Pence, the former governor of Indiana, announced an agreement with Carrier. The company said it would retain production of gas furnaces at the plant. The state of Indiana would give the company $7 million in tax incentives over a decade, and the company agreed to invest $16 million in the facility.

According to the United Steelworkers union, about 700 jobs remain at the plant, down from about 1,400 when the plant was at full capacity. The numbers are approximate due to the count of temporary workers and other factors, but 700 jobs is a sound ballpark figure. That is how many jobs were on the line by the time Trump got involved.

The state agency that oversees the terms of the tax break, the Indiana Economic Development Corp., shows that the company more than met the investment goal.

Carrier says it invested $26 million in a variety of areas, "including adding production capabilities for additional product lines."

Some of those investments will lead to fewer line workers in the future, but for right now, the jobs and the plant remain. We rate this Promise Kept.

 

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