DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-74,878

GKN AEROSPACE CHEM-TRONICS, INC.
A DIVISION OF GKN AMERICA CORPORATION
KENT, WASHINGTON

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.

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 November 16, 2010 by an official from the
International Association of Machinists and Aerospace Workers
(IAMAW) on behalf of workers of GKN Aerospace Chem-Tronics,
Inc., a division of GKN America Corporation, Kent, Washington.
The workers produce titanium welded structures and aft boom and
side of body joint assemblies for incorporation into the F-22
fighter.
The petitioner alleges that the firm lost business with a
TAA-certified firm, and that increased imports of directly
competitive articles contributed importantly to worker
separations at the firm. Specifically, the petitioner alleges
that the F-35 Joint Strike Fighter will replace the F-22; that
the F-35 will include components produced in a foreign country;
and that the global supply chain for the F-35 is among the
primary reasons for cancellation of the F-22 program and
therefore contributed importantly to the worker separations at
GKN Aerospace Chem-Tronics, Inc. The investigation included
analysis of data provided by GKN Aerospace Chem-Tronics, Inc.
and by the Washington State Labor Council, AFL-CIO, as well as a
review of publicly available analysis of the F-22 and F-35
programs.
With respect to Section 222(a) of the Act, the
investigation revealed that Criterion II has not been met
because imports of articles like or directly competitive with
the articles produced by GKN Aerospace Chem-Tronics, Inc. have
not increased. The investigation confirmed that the F-35 is
in the testing and development stage, with production and
associated imports not scheduled to begin for several years.
Section 222(a) of the Act does not allow for certification
based on likely increased imports in the future. In addition,
Criterion II has not been met because there has not been a
shift in production to a foreign country by GKN Aerospace
Chem-Tronics, Inc.
With respect to Section 222(c) of the Act, the
investigation revealed that Criterion (2) has not been met.
The investigation established that GKN Aerospace Chem-Tronics,
Inc. produced and supplied titanium welded structures and aft
boom and side of body joint assemblies to a firm that employed
a worker group that is covered by a TAA certification.
However, the article that was the basis for that certification
issued under Section 222(a) of the Act was passenger aircraft
rather than the F-22, as would be required for certification
of this worker group.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because GKN Aerospace Chem-Tronics, Inc. has not been
identified in an affirmative finding of injury by the
International Trade Commission.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of GKN Aerospace Chem-
Tronics, Inc., a division of GKN America Corporation, Kent,
Washington, 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 21st day of April, 2011


/s/Michael W. Jaffe_______
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance