Pence Administration Outlines Resources and Actions Taken Since Carriers’ and United Technologies’ Decision to Relocate to Mexico

Pence Administration Outlines Resources and Actions Taken Since Carriers’ and United Technologies’ Decision to Relocate to Mexico

Indianapolis – Governor Mike Pence outlined the State of Indiana’s actions that began last week as soon as news broke that Carrier Corporation and United Technologies would relocate jobs and operations to Mexico. Neither Carrier nor United Technologies provided any advance notification to the State of Indiana that they were moving operations.

“As governor, I was profoundly disappointed to learn that Carrier Corporation and United Technologies would relocate jobs and operations to Mexico, costing hardworking Hoosiers more than 2,100 jobs. My heart goes out to all the families and communities that are affected by this news.”

Helping Hoosier Workers 

“From the moment our administration learned of this announcement, our Department of Workforce Development reached out to employees of both companies to offer job-seeking, training and education resources,” said Governor Pence.

The Indiana Department of Workforce Development has been offering immediate Rapid Response services including, but not limited to:

Immediate onsite contact with employer and employee union representativesAssessment of worker job function and skills

Matching employee skills with open positions in local community

Providing training as necessary to impacted employees to help them gain new employment

Assisting in the application for additional benefits (federal Trade Adjustment Assistance – TAA)

Career counseling and individual case management for each employee

Any affected Hoosier can visit www.workoneworks.com to find their nearest WorkOne location.

“With thousands of positions currently open across Indiana right now and an unemployment rate of 4.4 percent, employers are vigorously competing to fill jobs. In tandem with job creators and local communities, the state is working to ensure quality employment for those affected as quickly as possible,” said DWD Commissioner Steve Braun.

Protecting Taxpayers

“I also instructed the Indiana Economic Development Corporation to review all incentive contracts previously offered to Carrier and United Technologies to evaluate options available to recover taxpayer investments,” Governor Pence continued.
All incentives provided by the IEDC are performance-based, meaning that a company must comply with the expansion or job creation commitments agreed to in their contract with the IEDC in order to be eligible for tax credits and training grants.

The IEDC has existing contracts to provide training grants to both Carrier Corporation and United Technologies. If the companies are found to be non-compliant with those terms, the IEDC will seek to recapture those grants to the maximum extent permitted by the agreement in order to protect Hoosier taxpayers.

The IEDC entered a contract with Carrier Corporation in 2013 to provide up to $200,000 in training grants based on the company’s job creation plans. A majority ($197,815.76) of that contract has been awarded. If the company closes its Indianapolis facility, or if the layoffs affect their job commitments noted in the contract, the IEDC will seek to recapture those grants.

The IEDC has two recent contracts with United Technologies Controls. In 2010, the IEDC offered the company up to $182,500 in training grants and has since awarded the full amount to the company. In 2015, the IEDC entered into another contract offering up to $300,000 in training grants based on the company’s plans to create new jobs. In light of this week’s news, the IEDC has de-obligated United Technologies from that $300,000 contract.

Additionally, if the company closes its Huntington facility, or if the layoffs affect their job commitments noted in the 2010 contract, the IEDC will seek to recapture those grants.

Calls for Reform in Washington, D.C.

“Indiana’s economy is growing, fostering record employment and investment. Yet, federal corporate tax rates are among the highest in the developed world, and companies throughout the United States must contend with an overall regulatory burden that has seen, since 1997, regulation on manufacturing by the federal EPA increase over 93 percent,” said Governor Pence.

“Simply put, the loss of these jobs shows the need for reform in our nation’s capital. My administration will continue to stand by working Hoosiers and advocate for changes in Washington, D.C. that encourage investment and job growth.”