Carrier gets state incentives, Trump pledge for keeping U.S. jobs

Wed Nov 30, 2016 9:07pm EST
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By David Shepardson and Ginger Gibson

WASHINGTON (Reuters) - United Technologies Corp's (UTX.N: Quote) Carrier unit said on Wednesday it got financial incentives from Indiana and a pledge from President-elect Donald Trump to improve the climate for business in the United States in exchange for keeping more than 1,000 jobs in the state rather than moving them overseas.

The heating and air-conditioning unit of the industrial and military conglomerate did not give a value for the financial incentives, but a source briefed on the matter said it was a fraction of the $65 million that Carrier planned to save by moving production to Mexico.

The deal, an outline of which was announced late on Tuesday, is a win for Trump as he seeks to make good on his popular campaign message of persuading companies to keep jobs in the United States. More details are expected on Thursday when Trump visits the Carrier plant in Indianapolis.

Hammered out by United Technologies CEO Gregory Hayes, Trump and Vice President-elect and Indiana Governor Mike Pence, the deal lets the incoming administration claim an early victory before it takes office on Jan. 20. It allows the company to dodge some public backlash and avoid a drawn-out fight with Trump, who vowed to punish U.S. companies that shifted jobs abroad.

Perhaps more importantly for both, it helps set the tone of a business-friendly administration ready to ease regulations and cut U.S. corporate taxes.

“Today's announcement is possible because the incoming Trump-Pence administration has emphasized to us its commitment to support the business community and create an improved, more competitive U.S. business climate,” Carrier said in a statement on Wednesday. It said the incentives offered by the state were an "important consideration."

TAX SLASH?   Continued...

The ticker symbol for United Technologies is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) February 23, 2016. REUTERS/Brendan McDermid/File Photo