Carrier Corporation is Outsourcing Factory Jobs to Mexico

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Carrier Corporation Is Laying Off 632 Employees

America’s headline-making manufacturer of heating and air conditioning systems, Carrier Corporation, is cutting more than 600 factory jobs in the state of Indiana and moving them to Mexico. At the same time, the company is closing a plant in Huntington, Indiana.

Carrier has announced a timeline for the 632 jobs that will be cut and outsourced to our Southern neighbors. The company has confirmed that 338 jobs will be eliminated by July 20, while another 290 workers will be laid off in in December, just days before Christmas.

In a letter sent to the Indiana Department of Workforce Development, Carrier’s management said the company’s decision had been carefully evaluated, as it faces challenges in the industry.

Carrier’s move comes months after President Donald Trump pledged to keep the company’s manufacturing jobs from leaving the United States. Throughout his campaign, Trump made protecting Carrier jobs a focus, with a promise that at least 1,100 of the 1,400 manufacturing jobs that were threatened would be saved under his presidency. Trump went so far as to say that there was a “one hundred percent chance” that he would prevent these jobs from leaving the country. (Source: Ibid.)

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Despite President Trump’s promises to keep Carrier from laying off Americans, the company is going ahead with the job cuts. With the latest announcement of over 600 layoffs, only about 800 jobs will survive in the United States.

The layoffs follow Trump’s visit to the Carrier factory last December, when he announced that the company would be keeping the jobs. Trump went on to celebrate on Twitter, saying that he had negotiated a successful deal with Carrier’s top management.

The layoffs have come as a shock to the employees, since the parent company of Carrier Corporation, United Technologies Corporation, had promised to keep the jobs in Indiana in return for state tax credits to the tune of $7.0 million. United Technologies recently invested roughly $16.0 million on automation at the Carrier factory. The investment to upgrade the current technology likely means that more blue-collar jobs will be lost at the factory in the coming years. (Source: Ibid.)

Manufacturing accounted for one-third of the jobs in Indiana 50 years ago. But layoffs and offshoring has contributed to a decline in that number. Today, manufacturing makes up only 10% of the jobs in the state.

Sources:

Carrier Corporation announces outsourcing of hundreds of jobs to Mexico,” ABC, May 23, 2017.

Layoffs at Carrier start soon, targeting some of the jobs Trump vowed to save,” Los Angeles Times, May 25, 2017.

 

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