DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-70,416

LENNOX INDUSTRIES, INC.
NORTH AMERICAN PARTS CENTER
URBANDALE, IOWA

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
(Department) herein presents the results of an investigation
regarding certification of eligibility to apply for worker
adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (c)
or (f) of Section 222 of the Act, 19 U.S.C. § 2272(a), (c), (f).
For the Department to issue a certification for workers under
Section 222(a) of the Act, 19 U.S.C. § 2272(a), the following
three criteria must be met:
I. The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

II. The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:




(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely, AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(i)(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm.

III. The third criterion requires that the increase in imports
or shift/acquisition must have contributed importantly to
the workers' separation or threat of separation. See
Sections 222(a)(2)(A)(iii) and 222(a)(2)(B)(ii) of the Act,
19 U.S.C. §§ 2272(a)(2)(A)(iii), 2272(a)(2)(B)(ii).

Section 222(d) of the Act, 19 U.S.C. § 2272(d), defines the
terms "Supplier" and "Downstream Producer." For the Department
to issue a secondary worker certification under Section 222(c)
of the Act, 19 U.S.C. § 2272(c), to workers of a Supplier or a
Downstream Producer, the following criteria must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article or
service that was the basis for such certification; and

(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.

Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(f) of the Act, 19 U.S.C. § 2272(f).
The group eligibility requirements for workers of a firm
under Section 222(f) of the Act, 19 U.S.C. § 2272(f), can be
satisfied if the following criteria are met:
(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a
domestic industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or


(C) an affirmative final determination of material
injury or threat thereof under section
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of
1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));
(2) the petition is filed during the 1-year period
beginning on the date on which--
(A) a summary of the report submitted to the
President by the International Trade Commission
under section 202(f)(1) with respect to the
affirmative determination described in paragraph
(1)(A) is published in the Federal Register under
section 202(f)(3); or
(B) notice of an affirmative determination described
in subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b)(1), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on May 22, 2009, by a company official on behalf of
workers of Lennox Industries, Inc., North American Parts
Center, Urbandale, Iowa (NAPC). The workers produce
aftermarket parts and supplies for HVAC and refrigeration
markets. The petitioner alleged that the shift in production
of articles from an affiliated facility abroad led to the
creation of excess space in which NAPC filed.
With respect to Section 222(a) of the Act, the
investigation revealed that workers of NAPC who are engaged in
employment related to the production of aftermarket parts and
supplies for HVAC and refrigeration markets do not meet the
criteria for certification.
Criteria II.A and II.B has not been met.
NAPC did not import aftermarket parts and supplies for
HVAC and refrigeration markets (or like or directly
competitive articles), acquire aftermarket parts and supplies
for HVAC and refrigeration markets (or like or directly
competitive articles) from abroad, or shift production of
aftermarket parts and supplies for HVAC and refrigeration
markets (or like or directly competitive articles) to a
foreign country in 2007, 2008, or January through April 2009
(the relevant period). Additionally, the Department surveyed
NAPC's major declining customers' regarding purchases during
the relevant period of aftermarket parts and supplies for HVAC
and refrigeration markets (or like or directly competitive
articles). The survey revealed no imports of the afore-
mentioned articles during the relevant period. Furthermore,
aggregate U.S. imports for consumption of aftermarket parts
and supplies for HVAC and refrigeration markets (and like or
directly competitive articles) were declining during the
relevant period.
With respect to Section 222(c) of the Act, the
investigation revealed that workers of NAPC who are engaged in
employment related to aftermarket parts and supplies for HVAC
and refrigeration markets do not meet the criteria for
secondary worker certification.
Criterion 2 has not been met.
NAPC is not a Supplier or Downstream Producer to a firm
that employed a group of workers who received a certification of
eligibility under the Tract Act.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because NAPC has not been publicly identified by name by the
International Trade Commission as a member of a domestic
industry in an investigation resulting in an affirmative
determination.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Lennox Industries,
Inc., North American Parts Center, Urbandale, Iowa, who
produce aftermarket parts and supplies for HVAC and
refrigeration markets are denied eligibility to apply for
adjustment assistance under Section 223 of the Act, 19 U.S.C. §
2273.
Signed in Washington, D.C., this 27th day of October, 2009.

/s/ Del Min Amy Chen

______________________________
DEL MIN AMY CHEN
Certifying Officer, Division of
Trade Adjustment Assistance