DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-51,049

RAYTHEON AIRCRAFT COMPANY
WICHITA, KANSAS

Notice of Negative Determination
Regarding Application for Reconsideration

By application of June 13, 2003, the International
Association of Machinists and Aerospace Workers, District Lodge
No. 70, requested administrative reconsideration of the
Department's negative determination regarding eligibility to
apply for Trade Adjustment Assistance (TAA), applicable to
workers and former workers of the subject firm. The denial
notice was signed on May 14, 2003, and published in the Federal
Register on June 3, 2003 (68 FR 33196).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) if in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.


The petition for the workers of Raytheon Aircraft Company,
Wichita, Kansas was denied because the “contributed importantly”
group eligibility requirement of Section 222(3) of the Trade Act
of 1974, as amended, was not met. The “contributed importantly”
test is generally demonstrated through a survey of customers of
the workers’ firm. The survey revealed that none of the
respondents increased their purchases of imported small business
jets. The company did not import small business jets, and
workers are not separately identifiable by product line nor did
the company shift production to a foreign source.
The union alleges that the company is importing components
for the JATAPs trainer planes produced at the subject facility.
A company official was contacted in regard to these issues.
As a result, it was revealed that aft fuses, ribsets and
harnesses are being built by both a Greek manufacturer and at the
Wichita facility for planes sold to both the U.S. government and
the Greek government. The investigation further revealed that the
foreign production has not affected production levels at the
Wichita facility, have not resulted in layoffs at the subject
facility, and represent a negligible percentage of overall plant
production.
The union further appears to allege that the company is
importing an electrical systems integrator from the Netherlands,
and is importing other components from a foreign firm known as
Folker Elmo.
Contact with the company revealed that components for the
Hawker Horizon (a new midsize jet that is significantly more
powerful and larger than planes currently produced at Raytheon)
are being built by Folker Elmo in the Netherlands. The company
official further clarified that this is the only production built
in the Netherlands. Since this production has never been produced
at the subject firm, and the final product is not like or
directly competitive with those produced at the subject firm,
this production has no bearing on subject firm workers’ ability
to meet the relevant criterion for TAA eligibility.
Conclusion
After review of the application and investigative findings,
I conclude that there has been no error or misinterpretation of
the law or of the facts which would justify reconsideration of
the Department of Labor's prior decision. Accordingly, the
application is denied.

Signed at Washington, D.C. this 1st day of August, 2003

/s/ Elliott S. Kushner

ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance