Bernie is reminding America of one of Trump’s many bold campaign promises. During the election, Trump used the story of Carrier, which is a brand of United Technologies Corporation Building & Industrial Systems, based in Farmington, Connecticut, which is planning to move headquarters to Mexico. Trump assured voters that he would convince United Technology to remain in the US or feel the wraith of his 35% tax.
“I will soon be introducing legislation to make sure that Donald Trump keeps his promise to prevent the outsourcing of American jobs,” Sanders said. “For the sake of American workers, this is a promise that cannot and must not be broken.”
Sander’s Outsourcing Prevention Act, will focus on Trump’s pledge to stop Fortune 500 company United Technologies from shipping 2,100 jobs to Mexico.
In February, the company announced that they were moving their operations south of the border. In three phases through 2019, they would shutter their Carrier Indianapolis factory. In addition, they would close their untington-based United Technologies Electronic Controls, which employs 700 people. Both companies are owned by United Technologies Corp., which is a government contractor, according to Indystar article.
Bernie’s Act essentially tells US companies, namely United Technology, that if their firm receives government contracts, they must keep their plants in America.
“Sanders said that his law would bar companies that ship jobs overseas from enjoying federal contracts, tax breaks, grants or loans; require clawbacks of federal perks; levy a tax that “would be equal to the amount of savings achieved by outsourcing jobs or 35 percent of its profits, whichever is higher” and prevent executives of companies that offshore jobs from drawing bonuses, stock options or ‘golden parachutes.’” Huffington Post article
What a victory it would be for Trump, if he could convince them to stay in America! Many union experts though, think this is very unlikely. Bernie is trying to force Trump to do just that.
Chuck Jones, president of United Steelworkers Local 1999, said “I think it’s all a PR move. Trump said what he said when he was campaigning. We’ve been calling him out, that he made promises Carrier wouldn’t move. In order to do something, I think he came up with this.”
Carrier’s unionized workers earn between $15 to $26 an hour. Employees in Mexico would earn that much in a day, according to NY Times article. Carrier will pay Mexican workers a base wage of $3 per hour, $23 an hour less than the highest-paid workers in Indianapolis.
Carrier responded that it expects to save $65 million a year by moving operations to Mexico, Jones said.
“We’re not just talking about a little hurdle,” Jones said. “We’re talking about a whole hell of a lot of money. Shareholders and everybody else have already been informed that this is going to enhance their profitability. I’d be shocked if anything was done.”