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Carrier's parent company says $16M investment after Trump deal will lead to more automated jobs

Posted at 8:35 PM, Dec 06, 2016
and last updated 2016-12-06 23:11:54-05

INDIANAPOLIS -- President-elect Donald Trump may have been able to save some of the jobs at Carrier’s Indianapolis plant but the Chief Executive of Carrier’s parent company says there will ultimately be fewer jobs at the factory.

United Technologies Chief Executive Greg Hayes told MSNBC their $16 million investment agreement as part of their deal with Trump to limit outsourcing will be used to increase their automation.

Which in turn, will mean fewer jobs that require an actual person.

“We're going to make a $16 million investment in that factory in Indianapolis to automate to drive the cost down so that we can continue to be competitive. Now is it as cheap as moving to Mexico with lower cost of labor? No. But we will make that plant competitive just because we'll make the capital investments there. What that ultimately means is there will be fewer jobs" said Hayes told CNBC’s Jim Cramer.

Carrier had planned to move those jobs to Mexico until Trump struck a deal and persuaded them to keep some of them in Indianapolis.

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Trump’s deal will keep 730 union, production line jobs as well as 70 salaried positions in Indianapolis in exchange for $7 million in tax incentives over the next 10 years. And the company has agreed to invest $16 million.

That investment, it seems, will be used to replace some of their human labor with automation. 

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