WASHINGTON (WUSA9) - Donald Trump on Thursday is expected to reveal details of a deal he negotiated with air conditioner and furnace maker Carrier to keep some 1,000 jobs that had been earmarked for a move to Mexico, in Indianapolis instead.
The deal was announced by the president-elect on Twitter on Tuesday night, and further clarified by the company in a statement Wednesday afternoon.
Carrier said the company would keep about half of the jobs it had planned to move to Monterrey, Mexico in Indiana instead – meaning some 1000 employees at the company’s Indianapolis facility will keep their jobs.
“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 company’s statement read in part. “The incentives offered by the state were an important consideration.”
The deal may include some $700,000 in state tax breaks, according to a report in Politico. It is likely that federal government contracts with Carrier and its parent company United Technologies were also put on the table in negotiations – encouraging Carrier to stay.
“The president elect and the vice president picked up the phone and called the CEO of United Technologies and told them we want to keep jobs here,” Steven Mnuchin, Mr. Trump’s nominee for treasury secretary told reporters on Wednesday. I can’t remember the last time a president did that.”
By some accounts, the decision not to send the 1,000 or so jobs to Mexico as planned could cost the company roughly $65 million dollars – relatively small beans for a company that made $4 billion in U.S. profits.
Even the Obama White House was cautiously optimistic about the deal on Wednesday.
“The early indications are that this is good news. And obviously we’d welcome that good news,” Press secretary Josh Earnest told reporters. “If [Mr. Trump] is successful in doing that 804 more times, than he will meet the record for manufacturing jobs that were created in the United States while President Obama was in office.”