On February 10, 2016, Carrier Air Conditioner, a division of United Technologies, announced that it was moving its operations to Mexico. The mobile video taken by an employee and posted on YouTube quickly became viral, making this special factory shut down national news, after Donald Trump made the company's decision to move to Mexico, "the center of his stellar speech attacking free trade." The move plays a role in Donald Trump's presidential campaign, 2016, as a symbol of his protectionist position in international trade, and a lower role in Bernie Sanders' presidential campaign in 2016.
Shortly after becoming elected President, Trump and Vice President-elect Mike Pence announced an agreement with Carrier to retain some manufacturing jobs in Indiana, while others will still move to Mexico instead of the big tax credits given to the company.
Video Carrier Air Conditioner move to Mexico
Decision to move production offshore
On 10 February 2016, Carrier announced plans to move its AC equipment, now located in Indianapolis, Indiana, to Monterrey, Mexico by 2017. The move to Indianapolis's Indianapolis plant is expected to result in the loss of 1,400 jobs. in Indianapolis.
The company representative announced the information to a worker meeting. He said, "The best way to stay competitive and protect the business for the long term is to move production from our facility in Indianapolis to Monterrey, Mexico."
Carrier mobile video representative announced the move was recorded by an employee and posted on YouTube; quickly becoming viral. Introduced as part of local news, the video was posted on Facebook by LaKeisha Austin and was picked up by Fox News, The Indianapolis Star and other news outlets on February 12th. A slight "vague" recording, shot by unidentified carrier employees showed President Operator Chris Nelson handling the assembled employees inside the Carrier plant. He said that, "I want to be clear, it's a business decision," because "sadness, collective cries are rising, people swearing, shouting and turning."
According to Carol Rogers of the Indiana Business Research Center, the Step Carrier attracted national attention for reasons other than the video, in particular. The fact that 1,400 is a tremendous amount of work to end in an offshoring event. The decision drew hundreds of protesters to the Indianapolis Carrier plant.
2016 Presidential Campaign
According to The New York Times, three days after the Introduction announcement, Presidential candidate Donald Trump made the company's decision to move to Mexico, "his stubborn speech center attacking free trade." The Carrier's move to Mexico quickly became the point of talks in the 2016 president's primary campaign because Bernie Sanders and Donald Trump used Carrier's move to criticize existing trade policies. Democratic Candidate Bernie Sanders called Carrier's move, "another example of how NAFTA and other trade policies have become disastrous for American workers."
During February 13, 2016, the Presidential Debate of the President of the Republic, Trump referred to the video, saying that if elected he would impose a 35% tax on every air conditioner. Importers from Mexico. Trump used the Carrier step as a "key point of the conversation," during the campaign, telling the crowds to gather for a Trump meeting for the President in Dayton, Ohio that, "I'll tell the chief Operator: 'I hope you enjoy your stay in Mexico. every unit you make and send across our border, which is now real, you will pay 35 percent tax. ""
The introductory video of Carrier sparked popular outrage over offshoring work which was reflected in the campaigns of both Sanders and Trump. Voters in favor of Sanders and Trump told The New York Times reporters that the loss of jobs caused by free trade policies was their number one problem.
Financial journalists including David Dayen, and Lance Selfa have used the Carrier step to analyze the arguments, made by Sanders and Trump, that offshoring painful manufacturing jobs of American workers.
The other focuses on Trump's position. Putting aside the Trump argument as "people's economy," Tim Worstall argues that moving production to low-wage countries like Mexico is good for Americans who can buy cheaper air conditioners. Binyamin Appelbaum, writes that while the majority of economists argue that importing goods produced by low-wage manufacturing jobs has been good for America because trade balance remains positive, economists have "oversold their case," neglecting to face the fact that, "Trade has a side and while trading profits are widely distributed, the costs are often concentrated, "borne by former factory workers. In contrast, Jim Cramer thinks Trump is right when he insists that a trade deal that lowers tariff barriers has devastated the American economy.
Maps Carrier Air Conditioner move to Mexico
Reversal of decision
While it is widely agreed that the reversal of the decision seems "unlikely," when Trump took the issue during the main campaign season, on November 24, shortly after being elected president, Trump announced that he was "making progress" in persuading the Company to reverse his decision ; the company confirmed that it was a discussion with the elected President and Vice President-elect Mike Pence. On November 29, Carrier announced it would retain half of the 2,000 jobs it had planned to divert to Monterrey, Mexico in Indiana. Mike Pence, the Governor of Indiana and the elected Vice President are said to have taken the lead in negotiations with Carrier.
Such active negotiation by elected president and vice president is said to be very unusual.
Details and aftermath
When details emerged, it appears that Carrier has agreed to keep a third of the 2,100 jobs planned to move to Mexico in Indiana in exchange for about $ 7 million in government subsidies for 10 years. The 800 jobs Carrier plans to move to Mexico will remain at the Indianapolis plant, while Carrier will move 600 from the Indianapolis plant to Mexico. However, United Technologies, Carrier's parent company, will continue its plans to close the plant in Huntington, Indiana, which produces electronic controls, moving 700 jobs from Indiana to Mexico.
The deal also called for a $ 16 million investment in the Indianapolis facility. Most of the money will be invested in automation, says Greg Hayes, CEO of United Technologies, Carrier's parent company. And that automation will replace some stored jobs. In June 2017, union officials declared that Carrier plans to lay off about 600 employees in July and December 2017. One forklift driver who worked in Carrier for 14 years who did not lose his job in June closures interviewed by NPR Morning Edition said he would be crashed into an assembly line position that is likely to be cut later: "I am not really optimistic that they will be in about five more years," said employee David Simmons. "I mean I hope I'm wrong, but I do not see it, I mean, they've been threatening this - to go to Mexico - for at least 10 years."
David A. Graham at The Atlantic sees the Operator deal as an early indication that Trump can enact several campaign pledges that have been widely seen as a mere campaign stance.
References
External links
- Video discussion as a reflection of workers' discontent, PBS NewsHour
- Carrier Air Conditioner (part of United Technologies) Moving 1,400 Jobs to Mexico, YouTube.com
- Raff, Anthony (December 28, 2016). "The Carrier Myth" (documentary) . Atlantic . Retrieved January 26, 2017 . Ã,
Source of the article : Wikipedia
0 Comments