Professor: Trump's Involvement In Carrier Decision Done In 'Remarkably Short Time Frame'

Professor: Trump's Involvement In Carrier Decision Done In 'Remarkably Short Time Frame'

President-elect Donald Trump is adamant United States companies will be thinking twice before moving their business out of the country while he’s in office.

Trump celebrated Thursday at a press event at the plant of the Carrier Corp. heating and air-conditioning company after announcing a deal he struck with the company to keep about 1,000 of its jobs in the U.S.

Trump said at the event that other U.S. companies considering moving jobs overseas will also reconsider.

“Companies are not going to leave the United States anymore without consequences, not going to happen, it’s not going to happen,” Trump said.

Earlier this year, Carrier announced it was moving its plant and 1,400 jobs to Mexico, only for part of that plan to change as of this week.

Although what the state of Indiana did through its Economic Development Corporation for Carrier to keep some of the jobs in the state is rather traditional, the involvement of Trump is extraordinary, said Mohan Tatikonda.

Tatikonda, a professor in the Kelley School of Business at Indiana University, said when Carrier announced its plan earlier this year, Indiana Gov. and now-Vice President-elect Mike Pence reached out to Carrier executives to talk negotiations. But it was clear at that time that Carrier rebuffed those attempts, said Tatikonda.

“So, in what to me is a remarkably short time frame … from Thanksgiving week until now, with President-elect Trump’s involvement, this whole negotiation or opportunity was revisited and consummated Thursday,” he said.

Tatikonda said this was a big win for Carrier, its parent company United Technologies Corp. and the President-elect. However, he added, in negotiations, issues are supposed to ideally be win-win for all the multiple parties, and he’s unsure in this case that there is any win for the workers.

“I’m delighted for the Carrier employees who will stay on, but as you may have heard from the numbers, it’s not all of them, it’s more like 50 or 60 percent,” Tatikonda said. “And it’s only for this one factory at this point in time, and I think of that as a spot solution, a one off solution. It’s not a general policy that is easily implemented across many companies and across many sites,” he said.

Published at Fri, 02 Dec 2016 19:54:14 +0000


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