MORNING-03
victory tour.>
a factory in Indianapolis that was saved by a deal he helped negotiate. The
agreement saves more than a thousand jobs that Carrier Corporation planned
to move to Mexico.>
Mexico>
President-Elect Donald Trump is returning to the Midwest to start a victory tour. He will hold a thank you rally tonight in Cincinnati and he`ll visit a fac-- a factory in Indianapolis that was saved by a deal he helped negotiate. The agreement saves more than a thousand jobs that Carrier Corporation planned to move to Mexico. Dean Reynolds is there at the Carrier plant in Indianapolis with new information on the deal. Dean, good morning.
DEAN REYNOLDS (CBS News National Correspondent): Good morning. Well, even with this agreement, Carrier is still going to be shipping hundreds of jobs from this plant in Indianapolis to Mexico. And there are concerns about what kind of precedent this generous deal sets for other American companies with plans to move jobs overseas.
(Begin VT)
DEAN REYNOLDS: The deal covers not only manufacturing jobs, but also engineering and headquarters staff. Carrier says it will also make new investments in the facility here, ensuring it remains a, quote, "World- class furnace factory." In return, the company will receive incentives estimated in the millions of dollars.
PAUL ROELL: It was such a huge relief. I was worried if I had to take a lower-paying job, I may have to sell my house to get a more affordable home in a different area.
DEAN REYNOLDS: Paul Roell is a seventeen-year Carrier employee. A union member and Trump voter, he and his wife, Stephanie, had been bracing for the worst.
Are you going to go see Mister Trump?
PAUL ROELL: Yes. I`m hoping maybe he`ll have enough time to maybe talk to us so I can thank him personally for saving my job.
DEAN REYNOLDS: According to Fortune magazine, Donald Trump called Carrier CEO Greg Hayes and promised corporate tax rate reductions, dwarfing the sixty-five million dollars the company would have saved through outsourcing. Indiana reportedly sweetened the deal with about seven hundred thousand dollars in yearly tax incentives.
MIKE PENCE: We`re going to get this economy rolling again, have America standing tall in the world and prospering at home.
DEAN REYNOLDS: Carrier told employees in February it was shuttering the plant.
MAN (internet video): I want to be clear. This is strictly a business decision.
(Crowd protesting)
DEAN REYNOLDS: In a statement, the company said: "This agreement in no way diminishes our belief in the benefits of free trade and that the forces of globalization will continue to require solutions for the long-term competitiveness of the U.S." The White House welcomed the news but questioned whether saving jobs one factory at a time is effective.
JOSH EARNEST (White House Press Secretary): If he is successful in doing that eight hundred and four more times, then he will meet the record of manufacturing jobs that were created in the United States while President Obama was in office.
(End VT)
DEAN REYNOLDS: Now Carrier did not say whether the many government contracts of its parent company, United Technologies, played a role in its decision. Ten percent of United Technology revenue comes from federal contracts with the government. And the-- the government has not said yet whether those contracts will be nixed or changed in any way by this agreement. Anthony.
GAYLE KING: Okay. Thank you very much, Dean. All the people care about there is they get to keep their jobs.
ANTHONY MASON: Yeah.
NORAH O`DONNELL: Mm-Hm.
GAYLE KING: Whatever it takes to do that. Thank you very much, Dean.
END
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