USA TODAY International Edition

Carrier to lay off 338 despite Trump deal

Company outsources fan coil production to Mexico factory

- Tony Cook and James Briggs @ indystarto­ny, @ JamesEBrig­gs The Indianapol­is Star Contributi­ng: Holly V. Hays, The Indianapol­is Star

Carrier Corp. plans to eliminate 338 jobs at its Indianapol­is furnace factory Thursday.

And the timing is likely to raise some eyebrows.

The previously announced layoffs coincide, to the day, with the six- month anniversar­y of Donald Trump’s presidency. They are part of a deal Trump struck with the company in December to prevent deeper job cuts at the plant.

The terminatio­ns are the first wave of about 630 planned before the end of the year as the company shifts work to Mexico. Carrier’s parent company, United Technologi­es Corp., also plans to lay off an additional 700 workers at a factory in Huntington, Ind., near Fort Wayne.

Carrier, in a statement, said it “continues to honor its 2016 commitment to employ approximat­ely 1,100 associates in Indianapol­is. As announced in November, this includes headquarte­rs and engineerin­g jobs and more than 800 employees supporting our world- class gas furnace manufactur­ing center.”

The statement noted that more than 30 of the affected employees have taken advantage of a company benefit that reimburses them for pursuing degree programs.

Carrier last year announced plans to move all of its Indianapol­is operations to Monterrey, Mexico, and close the factory. The pending layoffs became a flash point during the presidenti­al election when United Technologi­es announced it would cut 2,100 jobs in Indiana. Trump slammed the decision on the campaign trail and threatened to “tax the hell” out of Carrier’s products.

An agreement brokered after the election by Trump and thenIndian­a Gov. Mike Pence resulted in a commitment from Carrier to keep the plant open for 10 years. Despite the agreement, Carrier is still moving its fan coil production from Indianapol­is to Mexico.

Most of the positions being cut Thursday are related to that outsourcin­g, said Robert James, president of United Steelworke­rs Local 1999, which represents Carrier workers. About 140 of the workers who are leaving Thursday requested voluntary separation, James said.

Carrier granted the separation­s to some of the most experience­d employees, which James said might allow some younger workers to keep their jobs. All employees whose jobs are being eliminated will receive one week of severance pay for every year they spent with Carrier, plus six months of insurance.

Although Trump and Pence have been credited with saving Carrier’s Indianapol­is factory, James said employees don’t feel much security.

“They just don’t have any faith in this plant staying in Indianapol­is,” he said. “There’s just too much uncertaint­y.”

James, who recently succeeded retired union leader Chuck Jones, said he expects Carrier to eventually close the plant.

Jones and Trump were in a bit of a Twitter feud after the deal was announced. Trump twice tweeted about Jones, saying Jones has done a “terrible job” representi­ng workers and that the union should “spend more time working.” Jones had criticized the deal.

At least in the short term, the deal negotiated by Trump and Pence is expected to prevent more than 700 layoffs at Carrier. As part of the deal, Pence arranged for Carrier to receive up to $ 7 million in conditiona­l state tax incentives and training grants — one of his final acts before leaving the governor’s office.

The Indiana Economic Developmen­t Corp. in March granted initial approval to the TrumpPence Carrier deal, but the state has yet to finalize it.

Trump and his supporters touted the deal as an early win for the incoming administra­tion — proof that Trump’s deal- making abilities could save jobs in the U. S. But detractors criticized Trump and Pence for exaggerati­ng the number of jobs saved and for providing taxpayer subsidies to the company even as it planned to ship most work to Mexico.

 ?? ROBERT SCHEER, THE INDIANAPOL­IS STAR ?? Robert James, president of United Steelworke­rs Local 1999, said in March that he hoped enough Carrier workers could take voluntary severance packages to mitigate some of the layoffs.
ROBERT SCHEER, THE INDIANAPOL­IS STAR Robert James, president of United Steelworke­rs Local 1999, said in March that he hoped enough Carrier workers could take voluntary severance packages to mitigate some of the layoffs.
 ?? KELLY WILKINSON, THE INDIANAPOL­IS STAR ?? Then President- elect Donald Trump and then- Indiana Gov. Mike Pence in December negotiated a deal to keep Carrier’s furnace factory in Indianapol­is open.
KELLY WILKINSON, THE INDIANAPOL­IS STAR Then President- elect Donald Trump and then- Indiana Gov. Mike Pence in December negotiated a deal to keep Carrier’s furnace factory in Indianapol­is open.

Newspapers in English

Newspapers from United States