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.
FULL CARRIER COVERAGE: DOCUMENTARY 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 | Bernie Sanders: Carrier held Trump hostage | Presidential parallel: President Obama and President-elect Trump both use Indiana jobs as first act | IU professor: Donald Trump’s Carrier deal a ‘spot solution’ | Trump Fact Check: Are we highest taxed country? | Call 6 Investigates Rafael Sanchez denied press credential to Carrier event | Carrier's union president: "Trump lied his a-- off" about deal to save jobs | Carrier announces price increase after Trump deal
