The Resergent
"The Carrier deal in which Donald Trump negotiated with United Technologies to keep the company from moving jobs to Mexico continues to unravel. One of the terms of the deal was that Carrier would invest $16 million in its Indiana facility, but now it appears that much of that investment will involve automation that will ultimately cost many workers their jobs.
"Trump had claimed that the deal would save “over 1,100” jobs in Indiana. Union leaders and Carrier had previously said that only about 730 manufacturing jobs would stay in the US as a result of the deal. Now it appears that many of those jobs have been saved only temporarily.
"CNN Money reports that Greg Hayes, CEO of Carrier’s parent company, says that automating the plant is needed to keep it profitable. “We’re going to…automate to drive the cost down so that we can continue to be competitive,” Hayes said. “Is it as cheap as moving to Mexico with lower cost labor? No. But we will make that plant competitive just because we’ll make the capital investments there. But what that ultimately means is there will be fewer jobs.' ” . . .
Economics can be a hard master.
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