Vice President-elect Mike Pence, who is the current Indiana Governor, has agreed to offer $7 million worth of tax incentives for the next 10 years in order to encourage the Carrier company not to pursue its plan of transferring its plant to Mexico. Over 2,100 laborers will lose their jobs once the relocation of Carrier's plant will be pushed through.
According to a report by The Wall Street Journal, the United Technologies Corporation will also be credited from Indiana as it kept over 300 research as well as headquarters job posts that were not intended to transfer abroad. Carrier, in its official statement released on Thursday, said that the monetary incentives offered by the government are depending on factors such as job preservation, employment, and capital investment, CNBC reports. In return to the $7 million worth of tax breaks to be given by the government, Carrier must capitalize $16 million it the company's facilities within the state.
February this year, the heat and air-condition unit company announced the closure of its manufacturing plant located in Indianapolis for a possible transfer to Mexico. In the middle of Trump's campaign in the 2016 US Presidential election, he made it a point that among his top priorities is the protection and preservation of the manufacturing jobs in US so as to create and maintain the employment of the Americans.
Trump has been notable for his continuous attack on Carrier and other manufacturing companies that expressed their plans relocate jobs on countries other than the United States. Just recently, Jobs & Hire reported that President-elect Trump entered into talks with Carrier's management aiming to urge the company to remain in Indiana instead of moving to Mexico.
The workers union already entered into an agreement of separation with Carrier. In contrary, just weeks after he was hailed as the 47th president of the United States, Trump has made it a point to fulfil the words that he has promised during his campaign.
Trump also said on Thursday that he called Greg Hayes, the CEO of United Technologies. Hayes, however, confirmed that the newest facility in Mexico where Carrier is about to transfer has been already built. "Rent it. Sell it or knock it down. I don't care," Trump responded.
This move from Trump is about to prove that the President-elect is being true to making into reality all his plans for the US that he promised during the campaign. Will Carrier accept the bait made by Trump and Pence? Check out Jobs & Hire.