Another Trump Con: Foxconn Doesn't Meet Hiring Goal
The company failed to meet hiring requirements and warned they may not create the 13,000 promised jobs
Just a year ago, Trump and Wisconsin Governor Scott Walker touted the Foxconn project as a major economic stimulus to the Badger state. However, with the promise of billions of dollars in tax credits, the project was controversial and expensive. As readers of UCOMM Blog will remember at the time we warned that the taxpayers of Wisconsin were being conned by a company with a long history of failing to deliver on big promises.
With their first year in the books, Foxconn seems to have proved that thought right. On Friday, the Wall Street Journal reported that the company fell short of their 2018 job creation goal and would fail to meet the state’s requirement to collect their first round of tax credits. All Foxconn needed to do was create 260 full-time jobs, but instead, they created a paltry 178. The company blamed the low unemployment rate for failing to meet their goal, but some media outlets have reported that Foxconn failed to recruit local job seekers because they were spending their time recruiting Chinese citizens to move to the United States and take the jobs.
Foxconn also warned on Friday that due in part to global economic conditions and a tight labor market in the state hiring may be slower in the coming years. This puts into doubt whether Foxconn will ever reach the 13,000 jobs that the company, Walker, and Trump promised.
Foxconn may also be in financial trouble as they reported that they are looking to reduce costs by $3 billion. This is largely due to falling iPhone sales. In response to these falling sales, the company has laid off 50,000 seasonal workers at their Chinese plants.
Foxconn could receive up to $3 Billion in state tax breaks and subsidies and another $1 billion in local incentives if they meet all of their hiring and building deadlines. In 2019 taxpayers could pay out $19.1 million in tax subsidies if Foxconn creates 2,080 full-time jobs in 2019.