Foxconn struggling to maintain US workforce, with 155 layoffs in Indiana

AppleInsider

According to the U.S. Labor Department, Apple supplier Foxconn is still having problems meeting promised hiring goals, and has laid off 155 employees in Indiana, moving the positions to Mexico.

Foxconn said in a November 2018 filing, reiterated by the U.S Labor Department on Wednesday, that it would lay off 155 workers at a computer factory outside of Indianapolis, Indiana. The company cited "changes in our business and production objectives" as the reason.

According to Foxconn's corporate responsibility report, the 155 jobs moved represent a small amount of the company's total employee base, but does not address that it is a net loss of jobs in the U.S.

The company boasted 988,000 employees worldwide by the end of 2017.

In records obtained by Reuters, Foxconn had shifted some production to Mexico. The company told the Indianapolis Business Journal that the Plainsfield, Indiana plant was operated by a subsidiary firm and would not affect other Foxconn-related companies.

This is not the first time Foxconn has faced scrutiny over job creation and retention in the United States. The company has recently failed to meet job-creation targets at another facility in Wisconsin. Foxconn is in the process of a multi-billion dollar deal to build a 20 million square-foot research facility and LCD plant in Wisconsin, originally planning to employ 13,000 people.

However, the company stated that they had been reconsidering its plans, citing that they would not be able to build LCDs in Wisconsin and stay competitive. In response, Wisconsin Governor Tony Evers stated that he would renegotiate the deal, giving Foxconn $4 billion in tax breaks to continue the project. Hiring has still not picked up in Wisconsin, and the employee count is reportedly down from the end of 2018 numbers.

Foxconn maintains that they are still committed to increasing U.S. jobs.

gatorguy

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

edited June 2019

mervynyan

Heard from insider that Wisconsin deal is off because Corning doesn’t want to build a factory in WI, so goes the supply chain. Also Foxconn can find enough STEM background guys locally.

genovelle

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often.

The uncertainty created by a trade war with the country where the majority of their plants are located does not help the situation. 

dysamoria

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often.

Careful, if you keep posting rational critiques of our plutocratic oligarchy, you might get called a communist, or something else equally Cold War-era propaganda-like...

gatorguy

genovelle said:

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often.

The uncertainty created by a trade war with the country where the majority of their plants are located does not help the situation. 

Foxconn was backing away long before any "trade war" entered the fray. They have never met their stated employment projections in Wisconsin. Pretty much a building and a pretty sign.

notsofast

Please help educate Americans who are confused about these tax credits. Because of so much inaccurate reporting, many Americans believe Wisconsin has given billions to Foxconn. That's not true, and it's not ever going to be true. What Wisconsin did is to say if you build your factory here and create thousands of jobs, we will give you a break regarding the taxes you would have to pay. Whether you agree with giving companies tax credits like this, it's very different than taking existing tax dollars and giving them to a company. Ditto with how it was falsely and ignorantly reported that NY was giving huge amounts of to Amazon that could be used for other purposes. LOL. Those dollars were credits against the tax dollars that Amazon would owe. And now that Amazon isn't coming there, they don't exist!

auxio

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

One of the big problems is how much it costs to run a political campaign.  Guess who buys influence by funding those campaigns?

gatorguy

Notsofast said:

Please help educate Americans who are confused about these tax credits. Because of so much inaccurate reporting, many Americans believe Wisconsin has given billions to Foxconn. That's not true, and it's not ever going to be true. What Wisconsin did is to say if you build your factory here and create thousands of jobs, we will give you a break regarding the taxes you would have to pay. Whether you agree with giving companies tax credits like this, it's very different than taking existing tax dollars and giving them to a company. Ditto with how it was falsely and ignorantly reported that NY was giving huge amounts of to Amazon that could be used for other purposes. LOL. Those dollars were credits against the tax dollars that Amazon would owe. And now that Amazon isn't coming there, they don't exist!

How did the improved infrastructure such as roads and street-lighting, needed private land purchases for plant/utility/support services expansion, and added electric and water service get paid for? That totally ignores the assumed $Millions in legal and staff costs/fees, some of it paid to outside private firms, for consultation fees and negotiating the "deal".

$200million+ in actual out-of-pocket taxpayer costs doesn't seem out of reason as an estimate so far. 

edited June 2019

auxio

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

And yes, I'd argue that instead of giving tax breaks to corporations and hoping it will stimulate the economy, why not put more disposable wealth in the hands of the average working person (by reducing the cost of social services everyone uses like health care and education, reducing income tax at lower and middle brackets, etc) and actually create greater demand for products and services?  Which, in turn, would create more jobs as businesses grow to meet that increased demand.

gatorguy

auxio said:

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

And yes, I'd argue that instead of giving tax breaks to corporations and hoping it will stimulate the economy, why not put more disposable wealth in the hands of the average working person (by reducing the cost of social services everyone uses like health care and education, reducing income tax at lower and middle brackets, etc) and actually create greater demand for products and services?  Which, in turn, would create more jobs as businesses grow to meet that increased demand.

+1. 

dysamoria

gatorguy said:

Notsofast said:

Please help educate Americans who are confused about these tax credits. Because of so much inaccurate reporting, many Americans believe Wisconsin has given billions to Foxconn. That's not true, and it's not ever going to be true. What Wisconsin did is to say if you build your factory here and create thousands of jobs, we will give you a break regarding the taxes you would have to pay. Whether you agree with giving companies tax credits like this, it's very different than taking existing tax dollars and giving them to a company. Ditto with how it was falsely and ignorantly reported that NY was giving huge amounts of to Amazon that could be used for other purposes. LOL. Those dollars were credits against the tax dollars that Amazon would owe. And now that Amazon isn't coming there, they don't exist!

How did the improved infrastructure such as roads and street-lighting, needed private land purchases for plant/utility/support services expansion, and added electric and water service get paid for? That totally ignores the assumed $Millions in legal and staff costs/fees, some of it paid to outside private firms, for consultation fees and negotiating the "deal".

$200million+ in actual out-of-pocket taxpayer costs doesn't seem out of reason as an estimate so far. 

The demolishing of 70+ homes for this awful corporate deal didn’t help the people in that state much, either...

spamsandwich

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

Who is “we”? These are decisions made at the state level. The States compete with each other for business, so these incentive programs will definitely continue.

gatorguy

SpamSandwich said:

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

Who is “we”? 

We the people, thru our elected officials. 

jbdragon

gatorguy said:

auxio said:

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

And yes, I'd argue that instead of giving tax breaks to corporations and hoping it will stimulate the economy, why not put more disposable wealth in the hands of the average working person (by reducing the cost of social services everyone uses like health care and education, reducing income tax at lower and middle brackets, etc) and actually create greater demand for products and services?  Which, in turn, would create more jobs as businesses grow to meet that increased demand.

+1. 

What you are suggesting is not a tax break. What would instead happen is taxing having to go way, way up!!! Government has no money. It takes it from the tax payers. It doesn't magically come out of thin air.

You know why Education is so expensive? it's because Government got into it in the first place. Once you have Government created Student loans, well prices shot way up. No need to actually be affordable where people can work part time and afford to go to school. Instead, get a cheap Government loan and get into huge debt. In the past, if you went to the bank to get a loan for school and told them what you wanted to get into as a Occupation that didn't have a good pay, there was no realistic way you could pay them back, they wouldn't give you the loan. Not everyone needs to go to college.

Healthcare is NOT a right! Those people and services, and products needed don't work for free or not cost anything. The long Education needed is very costly. So prices are high. I shouldn't be forced to pay for YOU or all the many Illegals flooding into this country in the form of higher taxes.

I'm also not a fan of Tax Breaks. I think it's unfair to all the other businesses in the city and/or state. Maybe just lower taxes a little instead for ALL would bring in more businesses. All we ever have is ever growing taxes. Even so called temp taxes that get passed and then are suppose to expire after so many years, end up never expiring as they at that point can't live without that money plus the added taxes. All the taxes being taken from us and growing is already ridiculous.

I know so many of you all like this so called FREE Stuff. Well nothing in life is free. By the way 50% of the population, the poor to middle class already get away with paying NO Federal Taxes. If you pay money, and then get it all back again, you're not a tax payer. The myth the so called RICH don't pay anything is beyond laughable. For all this FREE stuff the left want. You could tax the so called Rich 100% of their money and it wouldn't pay for it all. Not even remotely close. If you're just going to take all my money, why even work and make money?

Also last I checked, Poor people don't create jobs let alone pay people for those jobs. Not everyone can be rich. Everyone has a chance to be Rich. Many people have come to this country with NOTHING and end up millionaires. It's called hard work.

edited June 2019

sdw2001

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

I'm not the biggest fan of these tax incentives, but it's also not the same as "giving" the corporations money.  They are getting a break on what they would pay as an incentive to bring jobs.  People like the insufferably dumb AOC think that we're writing them a check, and when the deal get canceled, we can "spend" that money.  In reality, the taxing authority loses money, because instead of a discount, they pay nothing if they don't move to the locale.  

chasm

This was a terrible deal made by former Governor Scott Walker to give away taxpayer money to help raise his profile and score expensive political points with the higher-ups in his party. Not the only terrible deal/law/proposal he made by a long stretch, either. Hundreds of millions of dollars paid for by the working class in Wisconsin has been wasted on various projects to support this boondoggle, and Foxconn is doing a laughable job of barely doing the bare minimum to keep the tax credits flowing. Ultimately this deal will collapse, I predict, and that would be a good thing -- hopefully taxpayers in WI won't have to make up for the billions in tax "credits" Foxconn would have gotten for simply doing the same thing successful small (and local!) businesses do all the time without those "incentives."

Governments should work to make their states so beautiful, diverse, educated and interesting/cultural that businesses will want to come there. That's a far better use of taxpayer money than giving away tax subsidies to already-wealthy corporations for doing the things they should be doing (would be doing) anyway.

jbilgihan

auxio said:

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

And yes, I'd argue that instead of giving tax breaks to corporations and hoping it will stimulate the economy, why not put more disposable wealth in the hands of the average working person (by reducing the cost of social services everyone uses like health care and education, reducing income tax at lower and middle brackets, etc) and actually create greater demand for products and services?  Which, in turn, would create more jobs as businesses grow to meet that increased demand.

But that would be anti-American.  Here we socialize the losses and privatize the profits (gains).  

dysamoria

sdw2001 said:

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

I'm not the biggest fan of these tax incentives, but it's also not the same as "giving" the corporations money.  They are getting a break on what they would pay as an incentive to bring jobs.  People like the insufferably dumb AOC think that we're writing them a check, and when the deal get canceled, we can "spend" that money.  In reality, the taxing authority loses money, because instead of a discount, they pay nothing if they don't move to the locale.  

Giving them free money is exactly how this ends up. Corporations are avoiding paying taxes AND getting tax refunds of millions/billions. Where do you think that money comes from? We are LITERALLY being taxed by corporations. Also, what do you think all the money came from to do all the infrastructure work in Wisconsin that was demanded by Foxcon? The local government. Tax payers, again.

auxio

jbdragon said:

gatorguy said:

auxio said:

gatorguy said:

So where are all those AI members who were praising the value of these tax breaks to the workforce and thus the tax base? IMO we HAVE to stop giving $millions/$billions to already wealthy corporations. Politicians appear to be bought off with promises of this or that far too often and middle class taxpayers are expected to pony up when things go south.

And yes, I'd argue that instead of giving tax breaks to corporations and hoping it will stimulate the economy, why not put more disposable wealth in the hands of the average working person (by reducing the cost of social services everyone uses like health care and education, reducing income tax at lower and middle brackets, etc) and actually create greater demand for products and services?  Which, in turn, would create more jobs as businesses grow to meet that increased demand.

+1. 

What you are suggesting is not a tax break. What would instead happen is taxing having to go way, way up!!! Government has no money. It takes it from the tax payers. It doesn't magically come out of thin air.

The government can choose who it takes money from.  Currently it chooses the working Americans to shoulder the burden far more than it does corporations (for a number of reasons).

You know why Education is so expensive? it's because Government got into it in the first place. Once you have Government created Student loans, well prices shot way up. No need to actually be affordable where people can work part time and afford to go to school. Instead, get a cheap Government loan and get into huge debt. In the past, if you went to the bank to get a loan for school and told them what you wanted to get into as a Occupation that didn't have a good pay, there was no realistic way you could pay them back, they wouldn't give you the loan. Not everyone needs to go to college. 

And you want to know why you have such a large portion of the American population which relies on social services: because you get the education you pay for.  There's no base standard for level of education, class sizes, and overall quality.  If you pay for a good private school, you get a better education, better connections, better jobs, period.  If you go to a public school, you better hope you live in an area where the surrounding community can donate a lot of time and/or money, or you'll end up with a very poor education.  Which then leads to worse jobs, poverty, and reliance on social services in the long run.

What your view of the world doesn't see is that the more people you can "bring along for the ride" in society by reducing or eliminating their barriers to success, the better off your country will be overall.  You'll have more people who become contributing members of society, more people paying taxes, increased spending power, etc.  Rather than having an "every man for themselves" mentality.  I mean, why don't we all just go back to the hunter/gatherer era and eliminate nations altogether?  There's a reason human history has progressed to the point it has: we're better off when we work together.

Healthcare is NOT a right! Those people and services, and products needed don't work for free or not cost anything. The long Education needed is very costly. So prices are high. I shouldn't be forced to pay for YOU or all the many Illegals flooding into this country in the form of higher taxes. 

Again, it comes down to yet another barrier to success.  If a person/family is spending all of their resources dealing with health care costs for one or more family members, that's resources which are taken away from getting an education, getting a job, and becoming a contributing member of society (paying taxes, generating wealth).  So what is the ultimate cost to society (in the long run) having so many people who can't become contributing members?  Forget all of the illegal immigrant propaganda, I'm just talking about the population in general.  Reducing the barriers to someone having a productive, successful adult life will pay back that investment in education and health care many times over.

I know so many of you all like this so called FREE Stuff. Well nothing in life is free.

Again, it's not about "free stuff".  It's about investing in the people who make up your nation.

Also last I checked, Poor people don't create jobs let alone pay people for those jobs. Not everyone can be rich. Everyone has a chance to be Rich. Many people have come to this country with NOTHING and end up millionaires. It's called hard work.

Last I checked, a business can't operate unless there's demand for their products/services.  If a large portion of the population is using all of their income for basic survival needs (and/or relying on social services for it), then they're certainly not creating any demand for anything beyond that.  It's not about everyone being rich.

edited June 2019

ivanh

I would not use the word “Struggle” in the title. Foxconn should be delighted or even eager to do so.