Denied
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TAW-80077  /  Federal Broach And Machine Company, LLC (Tempe, AZ)

Petitioner Type: Company
Impact Date:
Filed Date: 03/30/2011
Most Recent Update: 05/10/2011
Determination Date: 05/10/2011
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,077

FEDERAL BROACH AND MACHINE COMPANY, LLC
TURNER BROACH DIVISION
TEMPE, ARIZONA

Notice of Negative Determination
on Reconsideration

The initial investigation, initiated March 30, 2011, resulted
in a negative determination, issued on May 10, 2011, that was based
on the finding that the subject firm did not employ a worker group
during the relevant time period. The determination was applicable
to workers and former workers of Federal Broach and Machine
Company, LLC, Turner Broach Division, Tempe, Arizona. The notice
of negative determination was published in the Federal Register on
May 27, 2011 (76 FR 30977). Federal Broach and Machine Company,
LLC, Turner Broach Division, Tempe, Arizona (subject firm)
supplied broach tool sharpening and management services.
As required by the Trade Adjustment Assistance (TAA) Extension
Act of 2011 (the TAAEA), the investigation into this petition was
reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of title
II of the Trade Act of 1974, as amended by the TAAEA, to the facts
of this petition.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the subject
firm did not employ a worker group during the relevant time period.
With respect to Section 222(a) and Section 222(b) of the Act,
the investigation revealed that Criterion (1) has not been met
because the firm did not employ a worker group during the relevant
time period. Applicable regulation, 29 FR 90.2, states that “Group
means three or more workers in a firm or appropriate subdivision
thereof.” The subject firm did not meet this threshold level.
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been met because Criterion (1) has not
been met since the workers’ firm has not been publically identified
by name by the International Trade Commission as a member of a
domestic industry in an investigation resulting in an affirmative
finding of serious injury, market disruption, or material injury,
or threat thereof.
Conclusion
After careful review, I determine that the requirements of
Section 222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Federal
Broach and Machine Company, LLC, Turner Broach Division, Tempe,
Arizona, to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C., this 18th day of November, 2011

/s/ Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,077

FEDERAL BROACH AND MACHINE COMPANY, LLC
TURNER BROACH DIVISION
TEMPE, ARIZONA

Negative Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance
And Alternative Trade 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) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). 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
criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such 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 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers’ separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) there has been a shift in production by such workers’
firm or subdivision to a foreign country of articles like
or directly competitive with articles which are produced
by such firm or subdivision; and
(ii)(I) the country to which the workers’ firm has
shifted production of the articles is a party to a free
trade agreement with the United States;
(II)the country to which the workers’ firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), 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 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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms “Supplier” and “Downstream Producer.”
The investigation was initiated in response to a petition
filed on March 30, 2011 by a company official on behalf of workers
of Federal Broach and Machine Company LLC, Turner Broach
Division, Tempe, Arizona. The workers’ firm is engaged activities
related to the production of cutting tools and machine tools.
The petitioner alleges that the sole customer of the firm
shifted production of turbine disks to a foreign country. As a
consequence, related broach tool sharpening services and broach
tool management services provided by the firm were no longer
required. Federal Broach and Machine Company, LLC, Turner Broach
Division, Tempe, Arizona closed as a result and all workers were
separated.
During the course of the investigation, information was
collected from the workers’ firm.
With respect to Section 222(a) and Section 222(b) of the Act,
the investigation revealed that Criterion (1) has not been met
because a significant number or proportion of the workers in the
workers’ firm or an appropriate subdivision of the firm have not
become totally or partially separated, or threatened to become
totally or partially separated. A significant number or proportion
means that at least three workers must be totally or partially
separated, or threatened with separation. The investigation
established that only two workers have been separated.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
trade adjustment assistance. Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.











Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Federal Broach and
Machine Company LLC, Turner Broach Division, Tempe, Arizona, who
are engaged in activities related to production of cutting tools
and machine tools, are denied eligibility to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, as amended,
and are also denied eligibility to apply for alternative trade
adjustment assistance under Section 246 of the Trade Act of 1974,
amended.
Signed in Washington, D.C. this 10th day of May, 2011



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





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