U.S. DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-71,174

GENERAL ELECTRIC COMPANY
TRANSPORTATION DIVISION
ERIE, PENNSYLVANIA

Notice of Affirmative Determination
Regarding Application for Reconsideration

By application dated October 28, 2009, the petitioners
requested administrative reconsideration of the negative
determination regarding workers’ eligibility to apply for Trade
Adjustment Assistance (TAA) applicable to workers and former
workers of the subject firm. The determination was issued on
October 8, 2009. The Notice of Determination will soon be
published in the Federal Register.
The initial investigation resulted in a negative
determination based on the finding that imports of locomotives,
locomotive parts, marine and stationary engines, and various
propulsion systems did not contribute importantly to worker
separations at the subject firm. The investigation revealed that
the subject firm did not shift production of locomotives,
locomotive parts, marine and stationary engines, and various
propulsion systems to foreign countries during the period under
investigation.
In the request for reconsideration, the petitioner alleged
that General Electric reduced employment levels at the subject
facility as a direct result of shifts in production to Brazil,
China and Kazakhstan.
The Department has carefully reviewed the request for
reconsideration and the existing record and has determined that
the Department will conduct further investigation to determine if
the workers meet the eligibility requirements of the Trade Act of
1974.
Conclusion
After careful review of the application, I conclude that the
claim is of sufficient weight to justify reconsideration of the
U.S. Department of Labor's prior decision. The application is,
therefore, granted.
Signed at Washington, D.C., this 16th day of November 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-71,174

GENERAL ELECTRIC COMPANY
TRANSPORTATION DIVISION
ERIE, PENNSYLVANIA

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 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 of Labor 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.

The investigation was initiated in response to a petition
filed on June 12, 2009 on behalf of workers of General Electric
Company, Transportation Division, Erie, Pennsylvania. The
workers produce locomotives, locomotive parts, marine and
stationary engines, and various propulsion systems. The majority
of production activity at the Erie, Pennsylvania facility is
dedicated to the assembly of finished locomotives. These
locomotives are used by customers of the subject firm for the
provision of passenger and freight rail transportation services.

The petitioners allege that shifts of production abroad have
resulted in worker separations.
The investigation included collection of data from the subject
firm and a survey of the subject firm’s largest declining
customers.
With respect to Section 222(a) of the Act, the investigation
revealed that the workers of General Electric, Transportation
Division did not meet the criteria for certification.
Criterion II of this Section has not been met because there
was no shift abroad or acquisition from abroad by the subject firm
of articles like or directly competitive with the locomotives
produced in Erie, Pennsylvania.
The investigation revealed that employment and sales did not
decrease from 2007 to 2008.
The subject firm did not import articles like or directly
competitive with the locomotives produced in Erie. However, in the
year-to-date 2009 period it did import some components incorporated
into the finished locomotives. These imported parts did not
replace production at the subject firm, however, and the imports
declined both absolutely and as a proportion of sales.
In addition, a survey of the major declining customers of the
subject firm revealed that customers did not import articles like
or directly competitive with locomotives during the relevant
period.
Furthermore, United States aggregate imports for consumption
of Deisel-electric locomotives decreased over 90 percent in January
through July 2009 compared with the same period in 2008.
With respect to the petitioner allegation regarding a shift of
production abroad, the investigation revealed that any plan to
shift some production abroad has not been realized at this time.
With respect to Section 222(c) of the Act, the investigation
revealed that the workers of General Electric Company,
Transportation Division, Erie, Pennsylvania did not meet the
criterion for certification as secondarily affected workers.
Criterion (2) of this Section has not been met because the
workers did not produce an article or supply a service that was
used by a firm with TAA-certified workers in the production of an
article.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because the workers’ firm has not been identified in an affirmative
finding of injury by the ITC.


Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of General Electric
Company, Transportation Division, Erie, Pennsylvania who produce
locomotives, locomotive parts, marine and stationary engines, and
various propulsion systems 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 8th day of October 2009.


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





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