DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-64,647

TRANE US, INC.
RESIDENTIAL SYSTEMS DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM
REMEDY INTELLIGENT STAFFING
TYLER, TEXAS

Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance and
Alternative Trade Adjustment Assistance

On May 1, 2009, the Department issued an Affirmative
Determination Regarding Application for Reconsideration
applicable to workers and former workers of the subject firm.
The notice was published in the Federal Register on May 18, 2009
(74 FR 23216).
The previous investigation initiated on December 11, 2008,
resulted in a negative determination issued on February 13, 2009,
was based on the finding that imports of air conditioning units
did not contribute importantly to worker separations at the
subject firm and no shift of production to a foreign source
occurred. The denial notice was published in the Federal
Register on March 3, 2009 (74 FR 9279).
To support the request for reconsideration, the petitioner
supplied additional information and alleged that the workers of
the subject firm also manufactured components for air
conditioning units and that the subject firm shifted production
of these components to Mexico during the relevant period.
The Department contacted a company official of the subject
firm to address this allegation. Upon further investigation, it
was revealed that the workers of the subject firm did manufacture
one- and two-cylinder reciprocating compressors and crankshafts
during the relevant period. These workers were separately
identifiable from other workers at the subject firm. The
investigation also revealed that the subject firm shifted
production of one- and two-cylinder reciprocating compressors and
crankshafts to Mexico impacting workers engaged in the production
of one- and two-cycle reciprocating compressors and crankshafts
during the relevant period.
The petitioner also alleged that the subject firm is
transferring the wiring department to Mexico in 2009.
The company official of the subject firm confirmed that
Trane US, Inc. is considering a transfer of the wiring department
to Mexico and that this transfer is currently in the planning
process.
When assessing eligibility for TAA, the Department
exclusively considers shifts in production which occur during the
relevant time period (one year prior to the date of the
petition). Events occurring in the future are outside of the
relevant period and thus cannot be considered in this
investigation.
Should conditions change in the future, the petitioner is
encouraged to file a new petition on behalf of the worker group
which will encompass an investigative period that will include
these changing conditions.
The petitioner further alleged that the subject firm shifted
production of gear drive centrifugal water chillers to China.
The company official stated that the workers of the subject
firm did not manufacture gear drive centrifugal water chillers
during the relevant period.
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 group eligibility requirements
of Section 246 of the Trade Act must be met. The Department has
determined in this case that the requirements of Section 246 have
been met for the workers engaged in production of one- and two-
cylinder reciprocating compressors.
A significant number of workers at the firm are age 50 or over
and possess skills that are not easily transferable. Competitive
conditions within the industry are adverse.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that there was a shift in production of
one- and two-cylinder reciprocating compressors and crankshafts
from the workers’ firm or subdivision to Mexico. In accordance
with the provisions of the Act, I make the following certification:
"Workers of Trane US, Inc., Residential Systems Division,
including on-site leased workers from Remedy Intelligent
Staffing, Tyler, Texas, engaged in production of one- and
two-cylinder reciprocating compressors and crankshafts, who
became totally or partially separated from employment on or
after December 10, 2007, through two years from the date of
this certification, are eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, and
are eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974.”
I also determine that workers of Trane US, Inc., Residential
Systems Division, Tyler, Texas, excluding workers engaged in
production of one- and two-cylinder reciprocating compressors and
crankshafts, are denied eligibility to apply for adjustment
assistance under Section 223 of the Trade Act of 1974 and
alternative trade adjustment assistance under Section 246 of the
Trade Act of 1974.

Signed in Washington, D.C. this 18th day of June 2009.


/s/ Elliott S. Kushner
________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance

4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-64,647

TRANE US, INC.
RESIDENTIAL SYSTEMS DIVISION
TYLER, TEXAS

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 December 11, 2008 in
response to a petition filed by the International Union of
Electronics, Electrical, Salaried Machine & Furniture Workers
(IUE), ALF-CIO, Local 782 on behalf of workers of TRANE US, Inc.,
Residential Systems Division, Tyler, Texas. The workers produce
air conditioner units. A substantial portion of sales are through
affiliated internal distribution channels.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) have not been met.
The subject firm did not increase imports of air conditioner
units, nor did it shift production to a foreign country during the
relevant period. Although the petitioner alleges a shift of
production to Mexico, that shift, of a component part, took place
well before the periods covered by this investigation.
The Department of Labor surveyed the subject firm’s primary
declining customers regarding their purchases of air conditioner
units in 2006, 2007 and in January through November 2008. The
survey revealed no customer imports.
United States aggregate imports of unitary air conditioners
were very low relative to U.S. shipments (less than 10 percent) in
2007, and decreased absolutely in January to November 2008 compared
with the same period in 2007.
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 TRANE US, Inc.,
Residential Systems Division, Tyler, Texas, 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 13th day of February 2009


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





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