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TAW-72171A  /  Hawker Beechcraft Corporation (Salina, KS)

Petitioner Type: Union
Impact Date: 08/27/2008
Filed Date: 08/31/2009
Most Recent Update: 05/03/2010
Determination Date: 05/03/2010
Expiration Date: 05/03/2012

Other Worker Groups on This Petition
DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-72,171
HAWKER BEECHCRAFT CORPORATION
WICHITA, KANSAS

TA-W-72,171A
HAWKER BEECHCRAFT CORPORATION
SALINA, KANSAS

Determinations 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.

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 July 27, 2009 by the International Association of
Machinists and Aerospace Workers, District Lodge 70 on behalf
of workers of Hawker Beechcraft Corporation, Wichita, Kansas
(TA-W-72,171) and Hawker Beechcraft Corporation, Salina, Kansas.
The workers produce light aircraft and business jets, sold
essentially at a retail level to one time buyers of single
aircraft.
The petitioner alleges that production and services are
being shifted abroad and imports are increasing.
The investigation included the collection of data from
Hawker Beechcraft Corporation and an analysis of aggregate trade
data.
With respect to workers of Hawker Beechcraft Corporation,
Wichita, Kansas (TA-W-72,171), the investigation revealed that
these workers did not meet the criteria for certification under
Section 222(a) of the Act.
Criterion II of this section has not been met because
Hawker Beechcraft Corporation, is neither shifting production in
Wichita, Kansas to a foreign country of articles like or
directly competitive with light aircraft and business jets, nor
importing from a foreign country such articles.
In addition, United States aggregate imports of civil fixed
wing and powered aircraft declined sharply in full year 2009
compared with full year 2008.
With respect to Section 222(c) of the Act, the
investigation revealed that the workers of Hawker Beechcraft
Corporation, Wichita, Kansas did not meet the criteria 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 that employed a worker group eligible to apply
for TAA 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 met
because Hawker Beechcraft Corporation, Wichita, Kansas has not
been identified in an affirmative finding of injury by the
International Trade Commission.
With respect to workers of Hawker Beechcraft Corporation,
Salina, Kansas (72,171A), who are engaged in employment
related to the production of light aircraft and business jets,
the investigation revealed that these workers do meet the
criteria for certification.
Criterion I has been met because a significant portion of
the workers at the Salina, Kansas location are currently
threatened with separation.
Criterion II has been met because the workers' firm is
shifting production to a foreign country of articles like or
directly competitive with the articles produced by the
workers' firm at the Salina, Kansas location.
Criterion III has been met because the shift in
production at Salina, Kansas to Mexico by Hawker Beechcraft
Corporation contributed importantly to worker separations at
the Salina facility.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Hawker Beechcraft
Corporation, Salina, Kansas (TA-W-72,171A), meet the worker
group certification criteria under Section 222(a) of the Act, 19
U.S.C. § 2272(a).
I further determine that workers of Hawker Beechcraft
Corporation, Wichita, Kansas (TA-W-72,171) are denied
eligibility to apply for adjustment assistance under Section 223
of the Act, 19 U.S.C. § 2273.
In accordance with Section 223 of the Act, 19 U.S.C. §
2273, I make the following certification:
"All workers of Hawker Beechcraft Corporation, Salina,
Kansas (TA-W-72,171A), who became totally or partially
separated from employment on or after August 27, 2008,
through two years from the date of certification, and all
workers in the group threatened with total or partial
separation from employment on date of certification through
two years from the date of certification, are eligible to
apply for adjustment assistance under Chapter 2 of Title II
of the Trade Act of 1974, as amended."


And, after careful review of the facts obtained in the
investigation, I also determine that workers of Hawker
Beechcraft Corporation, Wichita, Kansas (TA-W-72,171) 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 3rd day of May, 2010


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