Monday, December 8, 2014

Rolls Royce Keeps Tax Breaks While Laying Off Workers from Indianapolis Plant

Kara Kenney of WRTV reports:
Indianapolis - Rolls-Royce is continuing to receive tax breaks despite laying off hundreds of employees over the past year, Call 6 Investigator Kara Kenney reported.

Effective Dec.5, Rolls-Royce eliminated positions for 200 operations employees in Marion County.

Earlier this year, on Jan. 6, the engine maker had a reduction in force of 330 positions that impacted both salary and production employees, according to Joel Reuter, vice president  of communications for Rolls-Royce of North America.


As part of its Amended Memorandum of Agreement with the City of Indianapolis signed in Feb. 2013, the company agreed to relocate thousands of jobs to the Rolls-Royce Meridian Center in downtown Indianapolis as part of its “advanced manufacturing operations retention initiative in Marion County (the Tibbs/Raymond Complex Initiative).”

Marc Lotter, spokesperson for Indianapolis Mayor Greg Ballard, explained a tax abatement is not forgiving existing taxes, but only lessening a percentage of taxes a company would pay because of a new investment.
Huh?  Anyway Lotter goes on to say that Rolls Royce's employment level of 4,300 is sufficient enough to keep the abatement, even with the layoffs of 530 employees.  Funny... when the abatement was handed out, Mayor Ballard bragged about how it would create 100 new jobs.  Froma March 6, 2012 press release issued by Develop Indy:

Indianapolis, Ind. – Mayor Greg Ballard today was joined by executives from Rolls-Royce to announce that the company will invest $42 million in a new advanced manufacturing facility in Indianapolis, creating over 100 new jobs by 2014.

“Today’s announcement reflects Rolls-Royce’s confidence in the stable business climate of Indianapolis,” said Mayor Ballard. “This environment is a large part of why Indianapolis is competitive in the global economy. The addition of over 100 new jobs provides opportunities for our skilled workforce. We are thrilled Rolls-Royce has chosen to expand in Indianapolis.”
So we taxpayers are not, as promised in 2011, subsidizing 100 new jobs but rather a company that cut 530 jobs?


Pete Boggs said...

Americans are subsi-dazed; while seeking a cure for viral statism.

Had Enough Indy? said...

This 'amendment' to the abatement has CYA written all over it.

Anonymous said...

Republicans love welfare, but only for corporations. Socialize the risk and privatize the profits. Wake up you stupid bastards.