Did Trump re­ally cre­ate 8,000 jobs?

Kuwait Times - - BUSINESS -

WASH­ING­TON:

Don­ald Trump gave him­self ku­dos for the cre­ation of 8,000 new US jobs by a Ja­panese tech mogul, say­ing it was proof of “the spirit and the hope” stirred by his pres­i­den­tial win. But for those par­tic­u­lar jobs, Trump was ba­si­cally tak­ing a bow for the sec­ond time. The jobs were part of a pub­lic com­mit­ment made on De­cem­ber 6 by Masayoshi Son upon emerg­ing from the el­e­va­tor bank at Trump Tower af­ter a meet­ing with Trump. Son pledged that com­pa­nies con­trolled by his firm SoftBank would in­vest $50 bil­lion in the United States and cre­ate 50,000 jobs.

On Wed­nes­day, Trump cel­e­brated the planned cre­ation of 5,000 jobs by wireless car­rier Sprint and 3,000 jobs by OneWeb both com­pa­nies where Son is a dom­i­nant in­vestor. Speak­ing from the front door of his Mar-a-Lago re­sort in Florida, Trump did not out­right men­tion Son’s pre­vi­ous com­mit­ment but used the op­por­tu­nity once again to de­clare a vic­tory for US work­ers. Al­though 8,000 job­s_on their own are un­likely to dra­mat­i­cally move the nee­dle to­ward the faster eco­nomic growth he has promised, the Trump tran­si­tion team treated the jobs as a pre­view of things to come. “This is just the tip of the ice­berg,” spokesman Sean Spicer told re­porters Thurs­day.

Ever the deal­maker, Trump has ac­tively courted and shamed com­pa­nies. The pres­i­dent-elect has pushed de­fense con­trac­tors Boe­ing and Lock­heed-Martin to re­duce their costs via his Twit­ter ac­count, while he ful­filled a cam­paign prom­ise by pre­serv­ing 800 jobs at the Car­rier fur­nace plant in In­di­anapo­lis that were pre­vi­ously bound for Mex­ico.

With the Sprint and OneWeb an­nounce­ment, there may be slightly less than meets the eye. There is one clear win­ner, though: Son, worth an estimated $19 bil­lion. Since the pres­i­den­tial elec­tion, Sprint stock has soared roughly 40 per­cent. Son’s SoftBank con­trols 83 per­cent of the Kansas-based car­rier. Here are some more facts about the SoftBank com­mit­ment.

Are all of Sprint’s pledged jobs at the com­pany?

No. Of the 5,000 jobs Sprint said it would cre­ate or bring back to the United States in its up­com­ing fis­cal year, some would be at out­side con­trac­tors. The jobs will help “sup­port” its cus­tomer ser­vice and sales teams, among other di­vi­sions at the com­pany. De­tails about pay and ben­e­fits are be­ing fi­nal­ized, ac­cord­ing to Sprint.

The com­pany also said it will dis­cuss with busi­ness part­ners, states and cities about where to cre­ate these jobs- but a spokes­woman told The As­so­ci­ated Press that it will not re­ceive any fed­eral, state or lo­cal gov­ern­ment in­cen­tives for adding these po­si­tions. Still, Sprint will likely have fewer work­ers than when Son’s firm SoftBank ac­quired a con­trol­ling stake in 2013. Sprint has shed about 9,000 em­ploy­ees since 2012; it now em­ploys roughly 30,000, ac­cord­ing to an­nual re­ports.

What are the 3,000 new jobs at OneWeb?

Son’s SoftBank in­vested $1 bil­lion this month in OneWeb, which is build­ing a net­work of satel­lites to pro­vide broad­band in­ter­net. The in­vest­ment will help fi­nance the con­struc­tion of a fac­tory in Florida that could pro­duce 15 satel­lites a week, gen­er­at­ing 3,000 en­gi­neer­ing, man­u­fac­tur­ing and sup­port jobs over the next four years, ac­cord­ing to a De­cem­ber 19 state­ment. Son linked his in­vest­ment to meet­ing with Trump.

“Ear­lier this month I met with Pres­i­dent-elect Trump and shared my com­mit­ment to in­vest­ing and cre­at­ing jobs in the US,” he said in a state­ment about the in­vest­ment. “This is the first step in that com­mit­ment.”

Who are the big win­ners?

In ad­di­tion to those who get hired for the new jobs, a clear vic­tor is Masayoshi Son. Trump twice praised the Ja­panese bil­lion­aire in De­cem­ber, sig­nal­ing that Son might as well have a di­rect line to the White House. This could be help­ful for Son’s other busi­ness plans. Un­der the Obama ad­min­is­tra­tion, he saw a mar­quee deal to merge Sprint with ri­val T-Mobile fail. Reg­u­la­tors op­posed com­bin­ing two of the four largest mobile telecom com­pa­nies in the United States. An­a­lysts say a Trump ad­min­is­tra­tion would be more likely to ap­prove telecom merg­ers. The ex­po­sure with Trump has al­ready been lu­cra­tive for Son. Be­fore the elec­tion, Sprint stock was trad­ing for less than it did af­ter SoftBank ac­quired the com­pany. —AP

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.