Members of the Indianapolis community rally behind USW Local 1999 on March 23, 2016 after United Technologies announced they would be moving the plant to Mexico. Image by USW 1999
Steelworkers travel to shareholders meeting, deliver petition calling on Carrier’s parent company to reconsider moving production from Indianapolis to Mexico
United Technology shareholders came face-to-face with workers being destroyed by insatiable corporate greed.
On February 10th, United Technologies (UTC) announced its “business decision” to shutter the Carrier plant in Indianapolis and move production to Monterrey, Mexico. The move would eliminate at least 1,400 jobs in Indianapolis. A video of the heartless announcement was posted on YouTube and has received more than 3.7 million views, drawing national attention to UTC offshoring plans.
On Monday, members of the United Steelworkers Local 1999 who work at the facility scheduled for closure traveled to the UTC shareholder meeting in Florida. The USW members delivered a petition signed by 4,500 people, asking the company to reconsider moving their jobs to Mexico, and called on UTC to keep good, family-sustaining jobs in Indianapolis.
“Abandoning the Indianapolis plant will have a devastating effect on not only 1,400 workers, but also our families and our community,” said USW Local 1999 Unit President Donnie Knox. “UTC’s decision to move our jobs to Mexico and the video of a manager’s callous delivery of that devastating news to workers in Indianapolis have made Carrier and UTC into poster children for corporate greed.”
United Technologies’ greed is not unusual. It is exactly what many of the other American companies have done over the last thirty years. Corporations sell out American workers, who labored to build the company from the ground up, only to watch their jobs shipped overseas so the stockholders can make a quick buck.
In October, United Technologies, Carrier’s parent company, used a stock buyback program to temporarily inflate the share price. They announced plans to buy back $12 billion worth of the corporation’s own stock — boosting the price per share up by almost 5%. UTC plans to spend another $3 billion later this year, to buyback even more shares. This is great news for the wealthy executives and Wall Street hedge fund managers who hold the majority of UTC stock (even though it’s one of the reasons for a recent downgrade in UTC’s bond rating).
What about the people who work for UTC? Instead of reinvesting in the company, expanding current operations or increasing the wages of the hard working men and women who built the company, UTC decided to use all those billions to buy back their own stock.
Just imagine what that $12 billion could have meant for the 195,000 workers employed by UTC.
As if spending $12 billion to buy back their own stock was not bad enough, let us not forget that UTC also paid out dividends to stockholders. In 2015, UTC paid a quarterly dividend of around $0.66 per share. This means that over the year UTC paid out $2.50 to all 843 million shareholders, totaling $2.1 billion dollars in dividend payouts.
That’s more than $14 billion total paid to stockholders in buybacks and dividends. The amount of money would it take to keep these 1,400 workers in Indianapolis would be just a drop in the bucket, compared to what is being shelled out to stockholders. The greedy executives do not seem to care about the workers, their families, or the city they will destroy when they close this factory.
Knox, and his fellow Steelworkers, delivered a petition with more than 4,500 signatures from Carrier employees and their supporters from Indianapolis and around the country, calling on the company to reconsider its heartless decision to abandon American workers.
Carrier’s decision to move these jobs to Mexico is what is wrong with too many American corporations. They no longer care about building a lasting company that employs as many Americans as they can, they only care about how they can boost their stock prices to further line their own pockets.
The members of Local 1999 are going to continue to fight until Carrier reverses their decision to send these jobs to Mexico.
On Friday, April 29, members of USW Local 1999 will take the fight to save their jobs to the streets with a march and rally at the Indiana State Capitol. The rally will be headlined by USW International Vice President Fred Redmond, U.S. Senator Joe Donnelly and AFL-CIO President Rich Trumka.
Here are three articles on United Technologies stock buyback program:
Related reading on stock buybacks from the NH Labor News:
Read the series about Verizon as a case study of what’s wrong with the economy, starting here.
Read “What Mitt Romney taught us about America’s Economy” here.
Read “McDonalds: Paying Billions (of Borrowed Money) to Stockholders” here.
Read more NHLN coverage of stock buybacks here.