Jamie Smith in New York
Eli Lilly said he would divert jobs away from his home state of Indiana following the Republican-controlled legislature’s decision to pass a near-total abortion ban.
“We are concerned that this law will impede Lilly’s – and Indiana’s – ability to attract diverse scientific, technical and business talent from around the world,” Lilly said.
The US drugmaker said it has expanded its employee health plan to cover interstate travel for abortion and reproductive services, but added that may not be enough for some current and future employees.
“Given this new law, we will be forced to plan for greater job growth outside of our home country.”
The Indiana bill prohibits abortion from conception, except in certain cases such as rape, incest and serious health risks to the mother. It was passed by the state legislature on Friday and signed into law by the governor.
It’s the first legislation drafted and signed into law since the Supreme Court overturned the 1973 Roe vs. Wade decision in June, though several other states have already put in place trigger laws that immediately implemented restrictions. to abortion.
Lilly employs more than 10,000 employees in Indiana and more than 36,000 worldwide. The decision by one of Indiana’s largest employers to divert investment away from its home state underscores the challenges American companies face when managing the health care needs of staff while trying not to retaliate against conservative politicians for taking a stand on abortion.
Some analysts have warned that the introduction of outright abortion bans in Republican-controlled states could encourage employers to divert investment to states that maintain access to reproductive health services, leading to a brain drain. so-called red states.
Duolingo, a company offering technology-based language learning, said in June it would move its headquarters from Pittsburgh if the Pennsylvania legislature banned abortion. But so far, few companies have explicitly stated publicly that an abortion ban would force them to divert investment from their home countries.
Lilly’s statement follows the company’s announcement in May that it would invest $2.1 billion in two manufacturing plants in Indiana, which are expected to create up to 500 new Lilly roles and around 1,500 jobs. in the construction.
Lilly told the Financial Times that it intends to honor its “current commitments” to Indiana.
Indiana’s abortion ban has been criticized by some of the states’ other major employers, including the Indiana Hospital Association, which warned lawmakers were “creating an atmosphere that will be seen as antagonistic to physicians.”
David Hoppe, the president of Gen Con, one of the largest gaming conventions in the United States, said last week that if the abortion ban were enacted, it would be harder for the convention to stay committed. to Indiana as a long-term annual residence. .
Indiana’s abortion law passage follows Tuesday’s defeat of a proposed referendum by Kansas’ Republican-controlled legislature that would have given state politicians the power to ban abortion. procedure. Abortion-rights campaigners said the polling result demonstrated that conservative politicians were out of step with the national mood.