DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,116

REEBOK INTERNATIONAL LTD.
ADIDAS GROUP NORTH AMERICAN ACCOUNTS PAYABLE
CANTON, MASSACHUSETTS

Notice of Revised 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 March 5, 2014, resulted
in a negative determination, issued on March 18, 2014, that was based on
the finding that the firm did not produce an article in the United States.
The determination was applicable to workers and former workers of Reebok
International LTD., Adidas Group North American Accounts Payable, Canton,
Massachusetts (Reebok International LTD). The subject worker group is
engaged in activities related to the supply of transactional accounts
payable services.

Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that a shift in
services to a foreign country contributed importantly to worker
separations.

Section 222(a)(1) has been met because a significant number or
proportion of the workers in such workers’ firm have become totally or
partially separate, or are threatened to become totally or partially
separated.

Section 222(a)(2)(B) has been met because the workers’ firm has
shifted to a foreign country the supply of a service like or directly
competitive with the transactional accounts payable services supplied
by the workers which contributed importantly to worker group separations
at Reebok International LTD.

Conclusion

After careful review, I determine that workers of Reebok
International LTD., Adidas Group North American Accounts Payable, Canton,
Massachusetts, who are engaged in activities related to supply of
transactional accounts payable services, 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 Reebok International LTD., Adidas Group North
American Accounts Payable, Canton, Massachusetts, who became totally or
partially separated from employment on or after March 3, 2013, through
two years from the date of certification, and all workers in the group
threatened with total or partial separation from employment on the date
of certification 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 6th day of August, 2015


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




DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-85,116

REEBOK INTERNATIONAL LTD.
ADIDAS GROUP NORTH AMERICAN ACCOUNTS PAYABLE DIVISION
CANTON, MASSACHUSETTS

Negative Determination 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 March 5, 2014 by the state workforce office on behalf of
workers of Reebok International Ltd., Adidas Group North America
Accounts Payable Division, Canton, Massachusetts. The workers'
firm is engaged in activities related to the supply of accounts
payable services.
The petitioner claimed the shift to a foreign country of
accounts payable services contributed to worker separations.
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that Reebok International Ltd.,
Adidas Group North America Accounts Payable Division, Canton,
Massachusetts, does not produce an article within the meaning of
Section 222(a) or Section 222(b) of the Act. In order to be
considered eligible to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, the worker group seeking
certification (or on whose behalf certification is being sought)
must work for a "firm" or appropriate subdivision that produces an
article. The definition of a firm includes an individual
proprietorship, partnership, joint venture, association,
corporation (including a development corporation), business trust,
cooperative, trustee in bankruptcy, and receiver under decree of
any court.
During the investigation, the Department of Labor obtained
information that revealed that the workers' firm did not produce an
article; rather, the workers' firm supplied services related to
accounts payable services.
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 Reebok
International Ltd., Adidas Group North America Accounts Payable
Division, Canton, Massachusetts engaged in activities related to
the supply of accounts payable services are denied eligibility to
apply for adjustment assistance under Section 223 of the Trade Act
of 1974, and are also denied eligibility to apply for alternative
trade adjustment assistance under Section 246 of the Trade Act of
1974.
Signed in Washington, D.C., this 18th day of March, 2014.


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