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Trump administration, Carrier reach deal to keep nearly 1,000 jobs in Indiana

Posted at 7:40 PM, Nov 29, 2016

INDIANAPOLIS -- Carrier and President-elect Donald Trump's incoming administration have reached a deal to keep a majority of jobs at their Indianapolis factory. 

Carrier released the following statement on Wednesday:

Carrier has had very productive conversations in recent days with President-elect Trump and Vice President-elect Pence.

We have negotiated an agreement with the incoming administration that we believe benefits our workers, the state of Indiana and our company.

We are announcing today that Carrier will continue to manufacture gas furnaces in Indianapolis, in addition to retaining engineering and headquarters staff, preserving more than 1,000 jobs.

Carrier will also designate its Indianapolis manufacturing facility as a Center of Excellence for gas furnace production, with a commitment to making significant investments to continue to maintain a world-class furnace factory.

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. The incentives offered by the state were an important consideration.

This agreement in no way diminishes our belief in the benefits of free trade and that the forces of globalization will continue to require solutions for the long-term competitiveness of the U.S. and of American workers moving forward.

Carrier announced Tuesday evening on Twitter that the deal included keeping in Indianapolis nearly 1,000 of the 1,400 jobs originally slated to leave for Monterrey, Mexico. The other details surrounding that deal have not been released. 

Trump and Pence will be visiting the Indianapolis Carrier plant on Thursday to discuss the details surrounding their deal. 

Reports surfaced earlier this week that Carrier and the Trump administration were in negotiations but the information about those negotiations was never confirmed. 

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The company announced back in February that it would be moving roughly 1,400 of its jobs to Monterrey, Mexico, citing the ability to save money through lower wages. Some reports showed Mexican wages as low as $3 per hour without benefits, and $6 per hour with benefits.

The move was set to take place from 2017 to 2019. 

Call 6 Investigates has learned that the 400 jobs that will move to Mexico are in the fan coil division, which produces electric furnaces. The largest chunk of jobs that are staying in Indianapolis produce gas furnaces. The factory produces about 10,000 furnaces per day.

Indianapolis Mayor Joe Hogsett issued a statement saying he's hopeful that the President-elect's efforts will keep Carrier jobs in the state. 

"Since February, Indianapolis has been united in working with state and federal partners to help those families affected by Carrier's shortsighted business decision. I am hopeful that President-elect Trump's efforts will keep many of these jobs here in Indianapolis and I trust our national leaders will continue working alongside us to assist the Carrier workers whose jobs will still leave in the coming years, as well as the families affected by the recent Rexnord announcement and the thousands more in our community who deserve full-time employment and a living wage."

U.S. Senator Joe Donnelly has been vocal about his thoughts surrounding Carrier's decision to move to Mexico. In an interview earlier this year, Donnelly said that he was 'not buying' the company's claims that they were relocating because of federal regulations, and that he believed it was about "chasing Mexican wages at $3 an hour." 

Donnelly has also been a strong advocate of making Carrier repay tax credits if their jobs were moved to Mexico, including more than $5 million the company received as part of President Obama's stimulus plan and clean energy tax credits from the Department of Energy. 

He released the following statement Tuesday evening following the announcement:

“This is welcome news for the Hoosier workers who will keep their jobs, and I'm eager to learn the specific details of the agreement. For many months I have been fighting alongside the Carrier workers and pushing to keep these jobs in Indiana. While this is good news, in Indiana alone, there are at least two other companies currently planning to move Hoosier jobs out of the country. We need to change our laws to encourage companies to grow here at home. I hope President-elect Trump will work with me toward this goal, so that companies will invest in the foundation of our economy: our workers and our communities.”

Congressman Andre Carson also released a statement Tuesday evening:

"The entire Indiana delegation has been working for months in a bipartisan way to keep Carrier jobs in Indiana. I look forward to learning more about the details of this plan which I hope benefits thousands of Hoosier workers."

Trump made frequent references to Carrier while campaigning for president, saying Carrier would not move if he were elected president and that he was the only person who could "fix it."

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He said that if he were president, Carrier wouldn't be leaving in the first place and Carrier would pay a 35 percent tax on imports to the United States if they move. 

"I will call the head of Carrier and I will say, I hope you enjoy your new building," Trump said. "I hope you enjoy Mexico. Here's the story, folks: Every single air conditioning unit that you build and send across our border – you're going to pay a 35 percent tax on that unit."

Carrier isn't the only Indianapolis company that was planning to move its jobs to Mexico. Rexnord Bearing will be moving some of its employees to Monterrey. Rexnord makes ball bearings and roller bearings.


Carrier announced in February that 1,400 jobs from their west-side manufacturing plant would be moving to Monterrey. A video of the announcement went viral, triggering outrage from as high up as Donald Trump. It also became the focus of multiple Call 6 Investigations, prompting special reports. You can find all of those stories here.

FULL CARRIER COVERAGEDOCUMENTARY SERIES: Moving to Mexico with 1,400 of Indy's lost jobs Jilted workers get first look at Carrier's offer | TIMELINE: Carrier to ship 1,400 jobs from Indiana to Mexico Trump made money off of Carrier in 2015 | Carrier president: More growth expected in '16 | Ex-Carrier employee sentenced for embezzlement | Carrier pay in Mexico questioned | Carrier refutes offer of $5.85/hour for workers to stay in Indy | Coats, Donnelly have 'disappointing' meeting with Carrier execs |  Sen. Donnelly: Carrier never cited federal regulations as reason for move | Union president: 'We're not going away quietly' | Carrier employees protest move at statehouse | Pence on Carrier meeting: 'I don't want to create any false hope for people' Moving to Mexico: What you need to know about Monterrey, Mexico  | Moving to Mexico: On the ground in Monterrey, Mexico, where Carrier is moving  Trump weights in on Carrier relocation to Mexico  | Carrier: Company did not receive $5M in federal stimulus funds  | President of United Steelworkers Union: No hope of saving 1,400 jobs  | Carrier employees, local businesses reel after announcement of move to Mexico  | WATCH: Employees react to news that Carrier is moving from Indy to Mexico