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When US Firms Move to Mexico, Some Workers Win, Some Lose

by Carolyn Presutti

   INDIANAPOLIS/MONTERREY, MEXICO --

   Three Tajima embroidery machines whirl frenetically, completing a gold
   letter "C" in three minutes. Printer Luis Bustos repositions the
   T-shirts and presses the switch. The machine surges.

   Florist Veronica Alday wraps Christmas poinsettias in red tissue paper
   to display for workers at the Carrier Corp.

   Which of these small-business owners is in Monterrey, Mexico? Which is
   in Indianapolis, Indiana?

   Printer Luis Bustos came to the U.S. to start his own business,
   something he said was not easy in Mexico. (C. Presutti/VOA)

   The cities and their surrounding areas have been in the news lately as
   the winner (Indianapolis) and loser (Monterrey) of a deal struck by
   U.S. President-elect Donald Trump to prevent 800 Carrier furnace
   manufacturing jobs from moving to the outskirts of Monterrey from
   Indianapolis. Another 550 Indiana union jobs will still go.

   "If there is no work in the factories, then there's going to be
   unemployment, so who is going to have money to buy flowers, right?"
   Alday asked, expressing a universal anxiety about manufacturing.

   Carrier effect

   But the reality is more nuanced. A few hundred jobs will not change the
   overall prosperity of either of these two metropolitan areas. Monterrey
   is at the center of the second-richest area in Mexico. In 2010, it had
   13,000 manufacturing companies. The number has since grown.

   Indianapolis is thriving, too. Its metropolitan area is the
   26th-largest economic region in the United States. While manufacturing
   is still among its biggest industries, the region has diversified. And
   even manufacturing, which took a dive during the 2008 recession, has
   recovered better here than in other places.

   The Carrier decision's impact is on individual workers. Will Cornett is
   keeping his $23-an-hour job at the Indianapolis plant after fearing he
   would lose it. "Praying every night," he said, "just believing in
   Trump, pretty much."

   Chuck Jones, who for 30 years has been president of United Steelworkers
   Local 1999, representing employees at Carrier's Indianapolis plant, put
   no faith in Trump; his union endorsed neither the businessman nor his
   Democratic rival, Hillary Clinton, in the presidential election. And
   late Wednesday, Jones was the target of a pair of Trump tweets.

   Jones' anger is all over his face. He knows too well what will happen
   to Carrier workers who still face layoffs.

   "I've been through eight to 10 plant closures through the years," he
   said, chain-smoking Marlboros. "When everything's over and done with,
   very few people's lives are going to be as good economically as they
   were when they were working. It's just a hard-core fact."

   Zahid Gonzalez-Trevino, 19, made about $73 a week at Carrier's plant in
   Santa Catarina, near Monterrey, about 230 kilometers southwest of the
   border town of Laredo, Texas. But he shrugged off the loss of his job
   during a production layoff. "It's not hard to find a job around there,"
   he said.

   In addition to lower wages, U.S. companies move to Monterrey for its
   proximity to the U.S., two airports, good telecommunications and a
   young workforce. Mexico's median age is 28.

   The companies come "because the people work. Because the human
   resources are here. Because the people are welcoming. Because the
   people work hard," Santa Catarina Mayor Hector Castillo-Olivares said
   proudly.

   The florist and the printer

   Veronica Alday's small floral and gift shop is across from the Carrier
   plant in Santa Catarina. Even in Mexico, her experience teaches her to
   worry about the future of her customer base at Carrier. She used to
   work in a Dutch factory, Hortimex, that cooked and processed U.S.-bound
   broccoli and cauliflower. Her job was to cut the vegetables into
   quarters.

   "The factory no longer exists.There's a lot of uncertainty here," Alday
   said. "We hope that Trump doesn't do all that he promised, but there's
   really no doubt that he will."

   Marcela Bedoya, behind the counter, owns Print and Save in
   Indianapolis, Indiana, with her husband. Luis Bustos, who is from
   Mexico City, Mexico. (C. Presutti/VOA)

   Printer Luis Bustos came to the U.S. to start his own business,
   something he said was not easy in Mexico, where his brother still
   struggles with the status quo.

   "[Shoppers] choose, like, big companies or big names, or that kind of
   stuff," he said. "Here ... you don't have to be Superman to set up a
   business. And people will follow you as long as you have quality and a
   few things that people look for."

   In Indiana, Bustos registered the name "Print and Save" online in 45
   minutes, got his business license in a few hours and the key to his
   office space after one interview. He had a business plan and within
   three months was paying back his initial investment. His customers are
   other small businesses, so the ebbs and flows of manufacturing don't
   hurt him.

   He stands in front of the wall he built -- his first investment -- to
   divide his shop. It is now lined with shelves of brightly colored
   T-shirts.

   "To be honest, I'm not the kind of person who thinks it is hard to live
   here," Bustos said. "I think it's more like mind things than really
   happening."

   The metal cooker

   Next week, the Rexnord ball bearing company will begin severance
   negotiations with its 300 employees.Less than three kilometers from
   Carrier in Indianapolis, the factory is closing in March and its jobs
   are going to Mexico. The only help that Trump has offered is another of
   his tweets.

   Heat treatment operator Joshua Shartzer will be losing his job, which
   he described as cooking metal. He works at it 10 hours a day, seven
   days a week, with overtime and double time on Sundays.

   "I spend more time with my co-workers than my family. But my wife and
   children realize this is not forever. If the money's there, I'm going
   to take advantage of it. Got college coming up," he said, referring to
   education costs for his children.

   Shartzer thought the Carrier deal was "awesome." But he said he didn't
   foresee help for Rexnard.

   "We don't do $10 billion in defense contracts," he said. "We're not in
   almost every house in America with our air-conditioning and furnace
   units."

   In any case, Rexnord's move is a done deal, said Oscar Cantu Garcia,
   mayor of the Mexican town where Rexnord is relocating. The corporation
   "made an investment of $56 million to work here, and that's something
   that no one is going to stop," he said.

   An embroidery machine operates at printer Luis Bustos' shop, Print and
   Save, in Indianapolis. He says he was able register the shop's name and
   get his business license quickly, arrange for office space in one
   interview and begin paying back his initial investment within three
   months. (C. Presutti/VOA)

   Four men huddled on bar stools at Sully's Bar and Grill in a strip mall
   near the Carrier plant in Indianapolis. In all, they've worked 126
   years for Carrier. Under a frieze of Christmas stockings, they agreed
   the future of the United States depended on a manufacturing base.

   "We have to make things and trade things," one said. "That's what makes
   up a society, or else we flirt with collapse."

   But Shartzer said he was no longer counting on big companies. He wants
   the freedom to control his own fate. He is thinking about "going into
   real estate investing."