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TAW-80431  /  Covidien (Argyle, NY)

Petitioner Type: Company
Impact Date: 09/11/2010
Filed Date: 09/12/2011
Most Recent Update: 09/28/2011
Determination Date: 09/28/2011
Expiration Date: 12/02/2013

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,431

COVIDIEN
FORMERLY KNOWN AS TYCO HEALTHCARE GROUP L.P
MEDICAL DEVICES/VASCULAR THERAPY DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM KELLY SERVICES
ARGYLE, NEW YORK

Notice of Revised Determination
on Reconsideration

The initial investigation, initiated September 12, 2011,
resulted in a negative determination, issued on September 28, 2011,
that was based on the fact that the subject firm did not show a
significant number or proportion of the worker group was separated
January through August 2011 when compared to the same period in
2010. The determination was applicable to workers and former
workers of Covidien, formerly known as Tyco Healthcare Group L.P,
Medical Devices/Vascular Therapy Division, including on-site
leased workers from Kelly Services,, Argyle, New York (Covidien).
The notice of determination was published in the Federal Register
on October 20, 2011 (76 FR 65214). The workers’ firm is engaged in
activities related to the production of single-use medical devices
for vascular access and airway usage.
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 worker
group meets the requirements for eligibility to apply for trade
adjustment assistance.
Section 222(a)(1) has been met because a significant number
or proportion of the workers in such workers’ firm are threatened
to become totally or partially separated.
Section 222(a)(2)(B) has been met because the workers’ firm
shifted to a foreign country the production of articles like or
directly competitive with medical devices produced by the subject
workers which contributed importantly to separations at Covidien.
Conclusion
After careful review, I determine that workers of Covidien,
formerly known as Tyco Healthcare Group L.P, Medical
Devices/Vascular Therapy Division, including on-site leased
workers from Kelly Services, Argyle, New York, who are engaged in
activities related to the production of single use medical devices
for vascular access and airway usage, meet the worker group
certification criteria under Section 222(a) of the Act, 19 U.S.C. §
2272(a). In accordance with Section 223 of the Act, 19 U.S.C. §
2273, I make the following certification:
"All workers of Covidien, formerly known as Tyco Healthcare
Group L.P, Medical Devices/Vascular Therapy Division,
including on-site leased workers from Kelly Services,
Argyle, New York, who became totally or partially separated
from employment on or after September 11, 2010, through two
years from the date of this certification, and all workers in
the group threatened with total or partial separation from
employment on December 20, 2011 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.”

Signed in Washington, D.C., this 2nd day of Decmber, 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-80,431

COVIDIEN
FORMERLY KNOWN AS TYCO HEALTHCARE GROUP L.P
MEDICAL DEVICES/VASCULAR THERAPY DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM KELLY SERVICES
ARGYLE, NEW YORK

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 September 11, 2011 by a company official on behalf of
workers of Convidien, formerly known as Tyco Healthcare Group
L.P, Medical Devices/ Vascular Therapy Division, Argyle, New York
(Covidien). The workers’ firm is engaged in activities related to
the production of medical devices. The subject worker group is
engaged in manufacturing and packaging of single use medical
devices for vascular access and airway usage.
The petitioner alleged on the petition “Production of
medical devices will be shifting to Mexico and Costa Rica.”
Therefore, the shift will result in separation of workers at the
firm in June, 2012.
During the course of the investigation, information was
collected from the workers’ firm, which revealed the subject firm
did not show a significant number or proportion of the worker group
was separated in January through August 2011, when compared to the
same period in 2010.
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 such
workers’ firm, have not become totally or partially separated, nor
are they threatened to become totally or partially 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 Covidien, formerly
known as Tyco Healthcare Group L.P, Medical Devices/Vascular
Therapy Division, Argyle, New York who are engaged in activities
related to the production of medical devices 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 28th day of September, 2011


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






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