US senator Bernie Sanders from Vermont, who lost the party nomination to Hillary Clinton, had earlier stated after losing the candidature that his main job was to defeat the policies of Donald Trump. However, Sanders now says he wants the President-elect to stop jobs leaving the US, which has been a key campaign highlight of Trump.
The focus this time is on United Technologies Corporation (NYSE:UTX), headquartered at Connecticut, and makers of the Carrier air conditioners. The business had earlier stated that they want to move production plants to Mexico from the US. This would cost the United States 2,100 jobs. The slated move is expected to happen sometime in 2017.
Last February, United Technologies had announced that two plants will be moved south to Mexico. One of them is in Indianapolis, and the other is in Huntington. The company says this will help them cut costs because of cheaper labor in Mexico and the trade relationships the country enjoys with the United States. Average wage in the US is about four times the salaries the company has to pay in Mexico.
Thanks to NAFTA (North American Free Trade Agreement), it has become cheaper to export from Mexico than many other countries.
Sanders Meets Trump to Stop United Technologies
Both Donald Trump and Bernie Sanders, unlikely allies, had opposed this move during the campaign. Sanders have now gone a step further, urging Trump to threaten the business if they go ahead with these plans. He called on the President-elect last Saturday and asked him to uphold all poll promises. Sanders says Trump should use incentives offered to United Technologies and defense contracts the business has to prevent the company from moving to Mexico.
Sanders tweeted saying that the business needs to be threatened if needed to keep these jobs in the United States. Trump said he is working with the company and try to convince them about keeping the plants in the US. United Technologies (NYSE:UTX) has also confirmed they are having talks with the new incoming administration.
United Technologies Receiving Help From the US Authorities
United Technologies has been receiving support from the US authorities for some time now. For instance, last year, the business got more than $6 billion worth of federal contracts, which made United the seventh largest receiver of federal funds.
The business has also received more than $50 million from the Export-Import Bank towards corporate welfare. Plus, they have also managed to use tax code loopholes to shelter two-thirds of their $38 billion profits from taxation.