Petitioner Type: State
Impact Date:
Filed Date: 02/27/2009
Most Recent Update: 04/06/2009
Determination Date: 04/06/2009
Expiration Date:
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-65,433
AMERICAN RACING EQUIPMENT, LLC
DENVER, COLORADO
Notice of Negative Determination
on Reconsideration
On May 11, 2009, the Department issued an Affirmative
Determination Regarding Application for Reconsideration for the
workers and former workers of the subject firm. The notice was
published in the Federal Register on June 16, 2009 (74 FR 28552).
The initial investigation resulted in a negative
determination based on the finding that imports of two-piece
automotive wheels did not contribute importantly to worker
separations at the subject firm and no shift of production to a
foreign source occurred.
In the request for reconsideration, the petitioner alleged
that the workers of the subject firm also supported production of
cast, one piece wheels. The petitioner alleged that the subject
firm shifted production of the cast, one piece wheels abroad and
that there was an increase in imports of the cast, one piece
wheels.
The Department of Labor contacted a company official to verify
this information. The company official stated that the workers of
the subject firm distributed the cast, one piece wheels which were
mostly manufactured in China. The company official also stated
that the subject firm ceased production of the cast, one piece
wheels long before 2008 and that no cast, one piece wheels were
manufactured by American Racing Equipment, LLC during the relevant
period.
When assessing eligibility for Trade Adjustment Assistance,
the Department exclusively considers production, shifts in
production and import impact during the relevant time period (one
year prior to the date of the petition). Therefore, events
occurring prior to February 26, 2008, are outside of the relevant
period and are not relevant in this investigation. The
investigation revealed that workers of the subject firm did not
manufacture the cast, one piece wheels and did not support
production of the cast, one piece wheels at any affiliated domestic
facility during the relevant period.
To support the allegation of a shift in production to China
the petitioner attached an email correspondence from an American
Racing Equipment, LLC employee dated March 13, 2008.
Upon further analysis it was revealed that the document
contains a review of the subject firm’s sales for the month of
February 2008. The letter also refers to the negative impact of
bad winter conditions in China to the Chinese production which was
the reason of reduced sales at the subject firm in February 2008.
The investigation revealed that the above mentioned document
does not contain any information which supports the petitioner
allegation regarding production of the cast, one piece wheels by
workers of the subject firm or a shift in production of the cast,
one piece wheels during the relevant period.
The petitioner also attached a letter dated June 29, 2007
signed by a company official.
Documents referring to the events which took place in 2007 are
outside of the relevant time period and cannot be considered in
this investigation.
The petitioner also attached a spreadsheet named “Salesperson
Pace Report – Daily Needs”. The Department reviewed the document
and determined that it does not contain any additional valid
information as it relates to this determination.
Conclusion
After reconsideration, I affirm the original notice of
negative determination of eligibility to apply for worker
adjustment assistance for workers and former workers of American
Racing Equipment, LLC, Denver, Colorado.
Signed at Washington, D.C., this 26th 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-65,433
AMERICAN RACING EQUIPMENT, LLC
DENVER, COLORADO
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 February 27, 2009, in
response to a petition filed by a one-stop operator on behalf of
workers of American Racing Equipment, LLC, Denver, Colorado. The
workers at the subject firm provide sales and distribution
functions for an affiliated firm that produced (assembled) two-
piece automotive wheels.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) have not been met.
The investigation revealed that the affiliated firm did not
import two-piece wheels nor did it shift production of two-piece
wheels abroad in 2007 or 2008.
The Department of Labor surveyed the affiliate’s declining
customers regarding their purchases of two-piece automotive wheels
in 2007, 2008, and January through February 2008 and 2009. The
investigation revealed that the declining customers of the subject
firm did not purchase imports of these wheels during the surveyed
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 American Racing
Equipment, LLC, Denver, Colorado, 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.
Signed in Washington, D.C., on this 6th day of April 2009.
/s/ Linda G. Poole
______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance
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Employment and Training Administration
TA-W-65,433
AMERICAN RACING EQUIPMENT, LLC
DENVER, COLORADO
Notice of Negative Determination
on Reconsideration
On May 11, 2009, the Department issued an Affirmative
Determination Regarding Application for Reconsideration for the
workers and former workers of the subject firm. The notice was
published in the Federal Register on June 16, 2009 (74 FR 28552).
The initial investigation resulted in a negative
determination based on the finding that imports of two-piece
automotive wheels did not contribute importantly to worker
separations at the subject firm and no shift of production to a
foreign source occurred.
In the request for reconsideration, the petitioner alleged
that the workers of the subject firm also supported production of
cast, one piece wheels. The petitioner alleged that the subject
firm shifted production of the cast, one piece wheels abroad and
that there was an increase in imports of the cast, one piece
wheels.
The Department of Labor contacted a company official to verify
this information. The company official stated that the workers of
the subject firm distributed the cast, one piece wheels which were
mostly manufactured in China. The company official also stated
that the subject firm ceased production of the cast, one piece
wheels long before 2008 and that no cast, one piece wheels were
manufactured by American Racing Equipment, LLC during the relevant
period.
When assessing eligibility for Trade Adjustment Assistance,
the Department exclusively considers production, shifts in
production and import impact during the relevant time period (one
year prior to the date of the petition). Therefore, events
occurring prior to February 26, 2008, are outside of the relevant
period and are not relevant in this investigation. The
investigation revealed that workers of the subject firm did not
manufacture the cast, one piece wheels and did not support
production of the cast, one piece wheels at any affiliated domestic
facility during the relevant period.
To support the allegation of a shift in production to China
the petitioner attached an email correspondence from an American
Racing Equipment, LLC employee dated March 13, 2008.
Upon further analysis it was revealed that the document
contains a review of the subject firm’s sales for the month of
February 2008. The letter also refers to the negative impact of
bad winter conditions in China to the Chinese production which was
the reason of reduced sales at the subject firm in February 2008.
The investigation revealed that the above mentioned document
does not contain any information which supports the petitioner
allegation regarding production of the cast, one piece wheels by
workers of the subject firm or a shift in production of the cast,
one piece wheels during the relevant period.
The petitioner also attached a letter dated June 29, 2007
signed by a company official.
Documents referring to the events which took place in 2007 are
outside of the relevant time period and cannot be considered in
this investigation.
The petitioner also attached a spreadsheet named “Salesperson
Pace Report – Daily Needs”. The Department reviewed the document
and determined that it does not contain any additional valid
information as it relates to this determination.
Conclusion
After reconsideration, I affirm the original notice of
negative determination of eligibility to apply for worker
adjustment assistance for workers and former workers of American
Racing Equipment, LLC, Denver, Colorado.
Signed at Washington, D.C., this 26th 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-65,433
AMERICAN RACING EQUIPMENT, LLC
DENVER, COLORADO
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 February 27, 2009, in
response to a petition filed by a one-stop operator on behalf of
workers of American Racing Equipment, LLC, Denver, Colorado. The
workers at the subject firm provide sales and distribution
functions for an affiliated firm that produced (assembled) two-
piece automotive wheels.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) have not been met.
The investigation revealed that the affiliated firm did not
import two-piece wheels nor did it shift production of two-piece
wheels abroad in 2007 or 2008.
The Department of Labor surveyed the affiliate’s declining
customers regarding their purchases of two-piece automotive wheels
in 2007, 2008, and January through February 2008 and 2009. The
investigation revealed that the declining customers of the subject
firm did not purchase imports of these wheels during the surveyed
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 American Racing
Equipment, LLC, Denver, Colorado, 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.
Signed in Washington, D.C., on this 6th day of April 2009.
/s/ Linda G. Poole
______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance
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