Denied
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TAW-62985  /  Kone, Inc. (Coal Valley, IL)

Petitioner Type: Union
Impact Date:
Filed Date: 03/11/2008
Most Recent Update: 04/30/2008
Determination Date: 04/30/2008
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-62,985

KONE, INC.
COAL VALLEY ESCALATOR DIVISION
COAL VALLEY, ILLINOIS

Negative Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (19 USC 2273), the Department of Labor herein presents
the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance. The group
eligibility requirements for directly-impacted (primary) workers
under Section 222(a) the Trade Act of 1974, as amended, can be
satisfied in either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. a significant number or proportion of the workers in
such workers' firm, or an appropriate subdivision of the
firm, have become totally or partially separated, or are
threatened to become totally or partially separated;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly
competitive with articles produced by such firm or
subdivision have contributed importantly to such
workers' separation or threat of separation and to the
decline in sales or production of such firm or
subdivision; or



II. Section (a)(2)(B) both of the following must be satisfied:

A. a significant number or proportion of the workers in
such workers' firm, or an appropriate subdivision of
the firm, have become totally or partially separated,
or are threatened to become totally or partially
separated;

B. there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and

C. One of the following must be satisfied:
1. the country to which the workers' firm has shifted
production of the articles is a party to a free
trade agreement with the United States;
2. the country to which the workers' firm has shifted
production of the articles is a beneficiary country
under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
3. there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced
by such firm or subdivision.

The investigation was initiated on March 11, 2008 in
response to a petition filed by the International Association of
Machinists and Aerospace Workers, District 6 on behalf of
workers of Kone Inc., Coal Valley Escalator Division, Coal
Valley, Illinois. The workers produced both industrial and
standard use escalators. Production of standard use escalators
was shifted to China in 2005. Currently, only production of
industrial use escalators remains.
The workers of the subject firm were previously certified
eligible to apply for adjustment assistance based on
actual/likely increase in imports of standard use escalators
(TA-W-58,282) following the shift abroad. That certification
expired on December 19, 2007.
This investigation revealed that criteria (a)(2)(A)(I.C)
and (a)(2)(B)(II.B) have not been met.
The subject firm did not import industrial use escalators
or shift production of industrial use escalators to a foreign
country from 2006 through February 2008.
From 2006 to 2007 sales of industrial use escalators from
the subject facility increased.
The Department of Labor surveyed the subject firm's only
customer regarding their purchases of escalators and
modernization components in 2006 through February 2008. The
survey revealed that the customer did not import industrial use
escalators.
The survey did reveal that standard use escalators were
imported. However, this type of escalator was not produced at
the subject firm in the relevant period. Imports replaced
production shifted abroad as covered by the previous
certification. These customer imports are not like or directly
competitive with the industrial escalators produced at the firm
in the relevant period.
In addition, in accordance with Section 246 the Trade Act
of 1974 (26 USC 2813), as amended, the Department of Labor
herein presents the results of its investigation regarding
certification of eligibility to apply for alternative trade
adjustment assistance (ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the worker group must be
certified eligible to apply for trade adjustment assistance
(TAA). Since the workers are denied eligibility to apply for
TAA, the workers cannot be certified eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Kone Inc., Coal
Valley Escalator Division, Coal Valley, Illinois are denied
eligibility to apply for adjustment assistance under Section 223
of the Trade Act of 1974, and are also denied eligibility to
apply for alternative trade adjustment assistance under Section
246 of the Trade Act of 1974.
Signed in Washington, D.C., this 30th day of April 2008


/s/Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance