Denied
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TAW-85036  /  Kelsey-Hayes Company (Sterling Heights, MI)

Petitioner Type: State
Impact Date:
Filed Date: 01/28/2014
Most Recent Update: 03/30/2016
Determination Date: 03/07/2014
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,036

KELSEY-HAYES COMPANY
D/B/A TRW AUTOMOTIVE
INCLUDING ON-SITE LEASED WORKERS FROM
ADECCO EMPLOYMENT SERVICES, KELLY SERVICES, INC. AND
AMERICAN SOCIETY OF EMPLOYERS
STERLING HEIGHTS, MICHIGAN

Notice of Negative Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the
Trade Preferences Extension Act of 2015, Public Law No. 114-27,
section 405(a)(1)(A), 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 TAARA 2015, to the
facts of this petition (statutory reconsideration).
The initial investigation, initiated on January 28, 2014,
resulted in a negative determination, issued on March 7, 2014, that
was based on the Department’s findings that the subject firm did
not shift the assembly of suspension and shock modules, or like
or directly competitive articles, to a foreign country, and that,
during the relevant period, imports of suspension and shock
modules, or like or directly competitive articles, did not
increase; and that the subject firm is neither a Supplier nor a
Downstream Producer. The determination is applicable to workers
and former workers of Kelsey-Hayes Company, d/b/a TRW Automotive,
including on-site leased workers from Adecco Employment Services,
Kelly Services, Inc., and American Society of Employers, Sterling
Heights, Michigan (Kelsey-Hayes Company). Workers of Kelsey-Hayes
Company are engaged in activities related to the production of
suspension and shock modules for vehicles.
Based on information reviewed during the reconsideration
investigation, the Department determines that the requirements for
certification have not been met.
With respect to Section 222(a)(2)(A)(ii), the investigation
revealed no increased imports by Kelsey-Hayes Company or its
major declining customer(s) of assembled suspension and shock
modules, or like or directly competitive articles, during the
relevant period as compared to the representative base period,
per 29 CFR 90.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Kelsey-Hayes Company did not shift the
production of suspension or shock modules, or like or directly
competitive articles, to a foreign country or acquire such
production from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Kelsey-Hayes Company is not a
Supplier or Downstream Producer to a firm (or subdivision,
whichever is applicable) 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).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either because Criterion
(1) has not been met since the workers’ firm has not been publicly
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 Kelsey-Hayes
Company, d/b/a TRW Automotive, including on-site leased workers
from Adecco Employment Services, Kelly Services, Inc. and
American Society of Employers, Sterling Heights, Michigan, to
apply for adjustment assistance, in accordance with Section 223 of
the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 30th day of March, 2016

/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-85,036

KELSEY-HAYES COMPANY
D/B/A TRW AUTOMOTIVE INCLUDING ON-SITE LEASED WORKERS FROM
ADECCO EMPLOYMENT SERVICES, KELLY SERVICES, INC. AND
AMERICAN SOCIETY OF EMPLOYERS
STERLING HEIGHTS, MICHIGAN

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 three
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 January 28, 2014 by a state workforce office on behalf of
workers of Kelsey-Hayes Company, d/b/a TRW Automotive, including
on-site leased workers from Adecco Employment Services, Kelly
Services, Inc., and American Society of Employers, Sterling
Heights, Michigan (hereafter referred to "TRW" or "the subject
firm"). The workers' firm is engaged in activities related to the
assembly of front and rear suspension and shock modules.
The petition alleges "Outsourcing of product to other
suppliers, possibly other countries."
During the course of the investigation, information was
collected from the workers' firm and its major declining
customer.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that TRW did not shift the assembly of
suspension modules, or a like or directly competitive assembly of
front and rear suspension and shock modules, to a foreign country
which is a party to free trade agreement with the United States
or a beneficiary country under the African Growth and Opportunity
Act, or the Caribbean Basin Economic Recovery Act. The
investigation also revealed that there were no imports of assembled
suspension or shock modules, or like or directly competitive
articles, nor is there likely to be an increase in imports.
With respect to Section 222(a)(2)(A)(ii), the investigation
revealed no imports of assembled suspension and shock modules by
the subject firm. The Department conducted a customer survey of
TRW's only declining customer which revealed no increased
imports, during the relevant period, of assemblies like or
directly competitive with the suspension and shock modules
produced by the subject firm.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that TRW is not a Supplier to, or act as a
Downstream Producer for, a firm (or subdivision, whichever is
applicable) 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), based on an increase in imports from, or a shift
in production to, Canada or Mexico.
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 (TAA). 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 Kelsey-Hayes
Company, d/b/a TRW Automotive, including on-site leased workers
from Adecco Employment Services, Kelly Services, Inc., and
American Society of Employers, Sterling Heights, Michigan, 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 7th day of March, 2014

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