(Rewrites throughout after Trump appearance, adds worker's
comments and other reaction)
By Nick Carey and Andy Sullivan
ELKHART, Ind./WASHINGTON Dec 1 As
President-elect Donald Trump received a warm welcome in
Indianapolis on Thursday for helping to preserve 1,000
manufacturing jobs, embattled workers elsewhere in the state
said that his work had just begun.
United Technologies Corp's decision to keep half of
the 2,100 Indiana jobs it was to shift to Mexico allowed
Republican Trump to claim credit after he promised to revive the
industrial base of the United States in his populist election
But the author of "The Art of the Deal" will have a lot more
dealmaking to do if he wants to stop the steady erosion of
manufacturing jobs from the country because of automation and
lower costs abroad.
"Now that they've saved jobs at one plant, we want to see it
happen here and elsewhere. If Trump doesn't make that happen
then people are going to be very disappointed in him," said
Susan Haines, a production coordinator at auto-parts maker CTS
Corp, which plans to eliminate 230 Indiana jobs by 2018
as it ships production overseas.
Across Indiana, manufacturers are eliminating at least 5,000
jobs this year under pressure from global competition, according
to a Reuters analysis of Labor Department filings. At least
4,060 jobs are disappearing because employers are shifting work
to Mexico or other countries, the filings showed.
And 960 workers employed by five companies in Indiana are
losing their jobs because their U.S. employers are not able to
compete with cheaper imported goods.
Some of those facing job cuts said they did not expect Trump
to intervene on their behalf, but they will expect him to take
broader steps to protect factory work.
"If in four years it's the same old crap that's going on
we'll give another candidate a shot," said Michael Mobley, whose
employer, Aurora Casket, eliminated 35 jobs in September and
plans to cut another 35 jobs next year as it shifts work to
Mexico from Aurora, Indiana.
FACTORY WORK LAGS ECONOMIC RECOVERY
As elsewhere in the United States, factory work in Indiana
lags as the broader economy has recovered from the 2008-2009
recession. Manufacturing employment is down 7.4 percent from
January 2007 levels even as total employment in the state has
risen 3 percent since then, according to the U.S. Bureau of
Nationwide, manufacturing employment is down 12.5 percent
since 2007, according to the bureau, even as overall employment
has risen 8.8 percent since then.
United Technologies' subsidiary, Carrier Corp, faced harsh
scrutiny after it announced in February that it was eliminating
1,400 jobs at an Indianapolis plant that makes heating and air
conditioning units, and 700 jobs at a United Technologies
factory in Huntington, Indiana.
On the campaign trail, Trump turned the Carrier layoffs into
a symbol of working-class frustration, promising that he would
rebuild a manufacturing base that has been eroded over the past
Trump and his vice president-elect, Indiana Governor Mike
Pence, worked out an agreement with United Technologies CEO
Gregory Hayes that gives the company $7 million in financial
incentives from the state, along with a promise to improve the
U.S. business climate.
The deal has drawn criticism from across the political
spectrum. U.S. Democratic Senator Bernie Sanders said it will
encourage other companies to threaten to eliminate jobs in
return for tax breaks, while some corporate advisers said it
smacked of coercion.
"The fact that he is strong-arming a company to potentially
stay and do work here is not pro-business," said Alex Major, a
partner at McCarter & English who counsels companies on
The deal also does nothing to prevent other employers from
shipping work out of state.
In Elkhart, a small city 160 miles north of Indianapolis,
auto-parts maker CTS is not the only company to pull up stakes.
Electronics maker Harman International also plans to
eliminate 125 jobs by January as it shifts work to Tijuana,
Mexico. The two companies got subsidies from the state totaling
$750,000 in 2014.
Still, Trump's willingness to provide tax breaks and other
incentives for employers is an encouraging sign, civic leaders
"If we have to wait for President Trump to come to Elkhart
it may take a while. But if he says here are some tools, we can
figure out how to use them," said Kyle Hannon, president of the
Greater Elkhart Chamber of Commerce.
Others are counting on Trump to take greater steps.
Employers will continue to shift work overseas until he rewrites
trade agreements, raises tariffs and adds other protections,
labor leaders said.
"We're going to need to hold Trump to his word to save
American workers' jobs across the country," said Wayne Dayle,
who as regional director for the United Steelworkers union in
Indianapolis represents employees at the Carrier plant.
(Reporting by Nick Carey in Elkhart, Indiana and Andy Sullivan
in Washington, additional reporting by Mike Stone in Washington;
editing by Soyoung Kim and Grant McCool)