Denied
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TAW-72560  /  Chrysler Group, LLC (Toledo, OH)

Petitioner Type: Union
Impact Date:
Filed Date: 10/13/2009
Most Recent Update: 02/16/2010
Determination Date: 02/16/2010
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-72,560

CHRYSLER GROUP LLC
FORMERLY KNOWN AS CHRYSLER LLC
TOLEDO ASSEMBLY COMPLEX
TOLEDO, OHIO

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 October 13, 2009 by the International Union, United
Automobile, Aerospace, and Agricultural Implement Workers of
America (UAW), Local 12, on behalf of workers of Chrysler Group
LLC, formerly known as Chrysler LLC, Toledo Assembly Complex,
Toledo, Ohio. The Toledo Assembly Complex consists of two
assembly plants: the Toledo North Assembly Plant and the
Toledo Supplier Park. The workers assemble the Dodge Nitro,
Jeep Liberty and Jeep Wrangler sport utility vehicles. Workers
are not separately identifiable by vehicle.
The petitioners allege that increased customer imports of
like products have resulted in decreased sales and worker
separations.
The investigation included collection of data from the
subject firm and an analysis of the United States market for
entry level sport utility vehicles.
With respect to Section 222(a) of the Act, the
investigation revealed that the workers of the Toledo Assembly
Complex did not meet the criteria for certification.
Criterion II has not been met because there was no increase
in imports or shift/acquisition by the subject firm of articles
like or directly competitive with the sport utility vehicles
assembled at the Toledo Assembly Complex.
The Department of Labor conducted an analysis of the United
States market share of vehicles like or directly competitive
with the vehicles produced at the Toledo Assembly Complex. The
Dodge Nitro, Jeep Liberty and Jeep Wrangler are entry level
sport utility vehicles. The investigation determined that
imports of such vehicles declined both absolutely and relative
to domestic sales of the subject vehicles. Together, the Nitro,
Liberty and Wrangler increased their share of the U.S. market
during the period under investigation, October 2008 to September
2009 compared with October 2007 to September 2008. The vehicles
also increased their market share in January through September
2009 compared with the same period in 2008, and from 2009 to
2010.
With respect to Section 222(c) of the Act, the
investigation revealed that the workers of the Toledo Assembly
Center did not meet the criteria for certification as
secondarily affected workers.
Criterion (2) 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 Chrysler Group LLC,
formerly known as Chrysler LLC, Toledo Assembly Complex,
Toledo, Ohio who assemble sport utility vehicles 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 16th day of February, 2010


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