The Companies Offshoring Jobs at a Record Pace Under Trump

The Companies Offshoring Jobs at a Record Pace Under Trump

Eric Schall         March 23, 2018

donald trump wearing a USA hat and a windbreaker against an american flagTrump has not saved many U.S. jobs from outsourcing since taking office, the record shows. | Mandel Ngan/AFP/Getty Images

You may remember these words from Donald Trump when he was running for president: “A Trump administration will stop the jobs from leaving America.” But U.S. companies sent thousands of jobs overseas in his first year as president. And many of the companies responsible for offshoring jobs received fat government contracts. In fact, according to employment data charted by Good Jobs Nation and Public Citizen, federal contractors alone outsourced 10,269 jobs while taking over $19 billion in government money.

Never before in U.S. history have federal contractors sent so many jobs overseas. Here are the contractors that are offshoring the most jobs under Donald Trump, including parent company of Carrier (page 7).

1. General Motors

President Donald Trump meets with CEO of General Motors Mary Barra (L), CEO of Fiat Chrysler Automobiles Sergio Marchionne (3rd R) and Fiat Chrysler Head of External Affairs Shane Karr (2nd R) in the Roosevelt Room of the White House on January 24, 2017 in Washington, DC.Auto executives won’t be adding U.S. plants any time soon. | Shawn Thew/Getty Images

  • Trump administration contracts: $323 million
  • Outsourced jobs: 2,781

Trump carried Michigan in the 2016 election, largely on the hopes of a manufacturing revival there. The CEOs of the Detroit automakers went to the White House in January to discuss the many promises Trump made to the industry and they, in turn, made to their employees. Well, those three automakers eliminated over 9,000 jobs since Trump’s victory in November 2017.

GM offshored the most jobs of any top federal contractor in America. Considering the company landed $323 million in government money from Trump, we imagine someone needs to check the receipts.

2. Boeing

Paul Ryan sits with the Boeing CEO at the company plant in WashingtonHouse Speaker Paul Ryan, R-Wis., speaks during a town hall with Boeing Company CEO Dennis Muilenburg and employees at the company’s plant on August 24, 2017. | Stephen Brashear/Getty Images

  • Trump administration contracts: $9.46 billion
  • Outsourced jobs: 2,681

In terms of federal contracts under Trump, Boeing made about half what the rest of the top 100 did combined: $9.46 billion in less than a year. Maybe that’s why House Speaker Paul Ryan took time out of his schedule to visit the Boeing plant in Washington. Ryan was pushing the tax reform plan that would supposedly open up the floodgates for hiring. Apparently, Boeing really need such a tax break because it offshored 2,681 jobs since Trump’s election victory.

3. United Technologies

View of President-elect Donald Trump speaking at the Carrier plant in Indiana in November 2016.Donald Trump speaks to workers at Carrier air-conditioning and heating. | Tasos Katopodis/Getty Images

  • Trump administration contracts: $1.07 billion
  • Outsourced jobs: 1,414

In December 2016, Trump went to a Carrier plant in Indiana to boast of the 1,100 jobs he was saving in exchange for a $7 million tax credit to the company. A year later, several hundred workers in that plant had lost their jobs. Worse, United Technologies — the company that owns Carrier — basically laughed in the administration’s face by sending another 700 jobs to Mexico in 2017. All told, United Technologies offshored 1,414 jobs while raking in $1.07 billion in federal contracts. If that’s “the art of the deal,” America’s workers are worse off than we imagined.

4. Pfizer

US President Donald Trump shakes hands with Ian Read (R), CEO of Pfizer, during the announcement of a a newly designed, Made in America pharmaceutical glass bottle jointly developed by Merck, Pfizer and Corning during a Made in America Week event in the Roosevelt Room of the White House in Washington, DC, July 20, 2017Donald Trump shakes hands with Pfizer CEO Ian Read during a Made in America Week event in July 2017. | Saul Loeb//AFP/Getty Images

  • Trump administration contracts: $1.07 billion
  • Outsourced jobs: 1,200

You may recall the eventful “Made in America Week” at the White House over the summer. During that week in July, America’s CEOs touted their companies’ achievements in getting things done in the U.S. One business leader on hand was Pfizer CEO Ian Read, whose firm received $1.07 billion in federal contracts under Trump. Despite that windfall, the company offshored 1,200 jobs and faced no consequences.

5. General Electric

Mary Barra of GM sits with Jeff Immelt of GE in June 2017.General Motors CEO Marya Barra sits with General Electric CEO Jeffrey Immelt at a an event for Trump administration job efforts in June 2017. | Mark Wilson/Getty Images

  • Trump administration contracts: $1.2 billion
  • Outsourced jobs: 921

After leaving Trump’s Economic Advisory Council in August, General Electric CEO Jeffrey Immelt made a strong statement. “The Committee I joined had the intention to foster policies that promote American manufacturing and growth,” he said. With $1.2 billion from the Trump administration, we’re guessing the company had the cash to make it happen, too.

Instead, GE outsourced 921 jobs while Immelt blew $250,000 on personal air travel. We’re not sure you can put workers any further down on the priority list while benefiting more from taxpayer-funded contracts. But hey, the administration and the companies it deals with have several years to go.

6. IBM

IBM HeadquartersA sign outside IBM corporate headquarters in Armonk, New York | Chris Hondros/Getty Images

  • Trump administration contracts: $1.55 billion
  • Outsourced jobs: 527

While the Trump administration may not be able to reverse global trends, the people in his Cabinet and Congressional majority certainly can control who gets federal contracts. Sadly, that power of the purse has not been used by Trump and his team. In the case of New York-based IBM, 527 jobs already left America since Trump won the election. Meanwhile, the fabulously wealthy corporation racked up $1.55 billion in federal contracts.

7. Merck

RAHWAY, NJ - NOVEMBER 29: A man walks by a sign at a Merck plant November 29, 2005 in Rahway, New Jersey. U.S. pharmaceutical giant Merck, announced plans to cut some 7,000 jobs, or 11 percent of its global workforce, by the end of 2008. More jobs left New Jersey-based Merck despite the $1.6 billion in federal contracts from the Trump administration. | Marko Georgiev/Getty Images

  • Trump administration contracts: $1.62 billion
  • Outsourced jobs: 254

Things are about the same, only worse, for the workers at the second U.S. company with New Jersey headquarters on this list. Merck won $1.62 billion in federal contacts since Trump took office. Unfortunately, there were no guarantees about keeping that money — or the U.S. jobs it would theoretically create — in the country. According to jobs data, at least 254 Merck jobs left America since Trump’s election.

8. Honeywell

American Airlines airplane taking off at Dallas - Ft Worth (DFW) Airport in Texas.Shipping jobs overseas? | Aneese/iStock/Getty Images

  • Trump administration contracts: $1.65 billion
  • Outsourced jobs: 202

If you look at the mission statement of New Jersey-based Honeywell, you will read about the company’s “global focus to achieve double-digit earnings growth.” Part of that process involves sending work overseas in order to keep the returns coming for investors.The math worked out pretty well in 2017. For the $1.65 billion in federal contracts, Honeywell offshored 202 jobs.

9. Hewlett Packard

  • Trump administration contracts: $1.04 billion
  • Outsourced jobs: 125

Hewlett Packard is a multinational computer company, with headquarters in Palo Alto, California. It struggled to keep pace with the ever-changing tech world over the past decade and continues to cut expenses when possible. In September 2017, Bloomberg reported Hewlett Packard plans to cut 5,000 jobs, or about 10% of its job force. It’s also No. 9 in terms of federal contractors offshoring jobs.

Author: John Hanno

Born and raised in Chicago, Illinois. Bogan High School. Worked in Alaska after the earthquake. Joined U.S. Army at 17. Sergeant, B Battery, 3rd Battalion, 84th Artillery, 7th Army. Member of 12 different unions, including 4 different locals of the I.B.E.W. Worked for fortune 50, 100 and 200 companies as an industrial electrician, electrical/electronic technician.

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