State to Review Carrier, UTEC Incentives

Posted: Updated:
(Image courtesy of Carrier Corp.) The largest of the two announcements involves an eventual 1,400 jobs in Indianapolis. (Image courtesy of Carrier Corp.) The largest of the two announcements involves an eventual 1,400 jobs in Indianapolis.
INDIANAPOLIS -

The state is prepared to take back training incentives offered to Connecticut-based United Technologies Corp.'s (NYSE: UTX) if its plans to move Indiana manufacturing operations to Mexico are found to break previous agreements. The company has subsidiaries in Indianapolis and Huntington, and announced last week the relocations could affect 2,100 Hoosier jobs. The Department of Workforce Development has also extended resources to potentially displaced workers. Pence adds he is pushing for federal regulation changes to "encourage investment and job growth."

Governor Mike Pence says he is "profoundly disappointed" by the news, and says the Indiana Economic Development Corp. will review the incentives.

UTC is planning to move its Carrier Corp. manufacturing operations in Indianapolis and Huntington-based United Technologies Electronic Controls Inc. headquarters and engineering center to a new facility south of the border.

Pence says neither Carrier nor United Technologies gave advance notice to the state about the moves. "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,” Pence said in a statement.

The state says the steps taken by DWD's Rapid Response officials include:

  • Immediate onsite contact with employer and employee union representatives
  • Assessment 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

Pence says IEDC incentives are performance-based, and if Carrier Corp. and United Technologies' training grant contracts with the state are found to be non-compliant, the IEDC will try to claw-back the funds "to the maximum extent permitted by the agreement." Over the last six years, the state has offered the two subsidiaries more than $380,000 in conditional incentives that it could seek to recapture. The IEDC says it has de-obligated United Technologies from a $300,000 training incentive contract issued just last year.

Last week, Indianapolis Mayor Joe Hogsett announced the creation of a task force to help affected workers and Senator Joe Donnelly (D-Ind.) took his concerns to Carrier Corp. HVAC Systems President Chris Nelson. During a conference call, Nelson said efficiency of lower production and labor costs in Mexico were the primary benefits of the move. He said Nelson did not name any federal regulations that led to the move. Donnelly said Carrier secured $5.1 million in tax credits from the U.S. Department of Energy in 2014, which he requested be repaid.

  • Perspectives

    • How to Find a New Audience After Hitting a Marketing Plateau

      It may sound like a marketer’s dream scenario: efforts have proven to be so successful it appears a company has completely saturated their target audience. While it may be a good problem to have, it still may be a problem. Hitting a marketing plateau is an opportunity for companies in any industry to reevaluate, re-energize and come to the table with new ideas for better understanding existing customers and engaging new audiences.

    More

Events



  • Most Popular Stories

    • (image courtesy of The Times of Northwest Indiana)

      Crews Start Demolition of Carson's in Hammond

      The face of downtown retail in Hammond is changing once again with the demolition of Carson’s department store, the one-time the anchor of Woodmar Mall. Our partners at The Times of Northwest Indiana report excavating crews have started to demolish the last vestige of the shopping center which stood since the 1950s. 

    • (image courtesy of The Times of Northwest Indiana)

      U.S. Steel Cuts Jobs, Low Price Imports Partially to Blame

      Pittsburgh-based U.S. Steel has announced it will idle its tin mill operations in East Chicago, affecting nearly 300 workers, half of which will lose their jobs. Our partners at The Times of Northwest Indiana report U.S. Steel blames the layoffs on the Del Monte food company which announced its own mass layoffs. 

    • Raytheon Awarded Military Contracts

      The U.S. Department of Defense has awarded Raytheon Co. in Indianapolis multiple contracts, totaling approximately $96 million. The DoD is spending nearly $30 million on avionics systems testing and integration for the Navy and Air Force. 

    • Gas City Startup Helping Hemp Farmers

      Last month, it became legal for Hoosier farmers to grow hemp and a Gas City-based startup is being aggressive in being among the first to take advantage of market opportunities. Heartland Harvest Processing is helping farmers connect the new agricultural commodity to consumer products, including CBD. Founder and Chief Marketing Officer Chris Moorman says the first hemp harvest under the new law is expected to begin next month. In an interview with Business of Health...

    • Photo courtesy of the Honeywell Center

      Artist Residency Holds First Exhibition at Honeywell Center

      The Wabash International Artist Residency will feature two Hoosier artists in an exhibition from August through October at the Honeywell Center in Wabash. An opening reception showcasing still life ink drawings by Mary Ann Lawson and surrealistic oil paintings by Tom Colcord will take place August 11.