DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,194

MED-FIT SYSTEMS, INC.
VIRGINIA DIVISION
INDEPENDENCE, VIRGINIA


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 April 2, 2014,
resulted in a negative determination, issued on July 24, 2014, that
was based on the Department’s finding of no increased imports and
no shift in production to a foreign country. The determination was
applicable to workers and former workers of Med-Fit Systems, Inc.,
Virginia Division, Independence, Virginia (Med-Fit Systems). The
workers’ firm is engaged in activities related to the production of
exercise equipment. The subject worker group does not include on-
site leased workers.
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) of the Act, the
investigation revealed that increased imports of exercise equipment
did not contribute importantly to worker group separations at Med-
Fit Systems.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Med-Fit Systems did not shift
production of exercise equipment, 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 Med-Fit Systems is not a Supplier 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Med-Fit Systems does not act as a
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 because 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 Med-Fit
Systems, Inc., Virginia Division, Independence, Virginia, to
apply for adjustment assistance, in accordance with Section 223 of
the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 29th 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-85,194

MED-FIT SYSTEMS, INC.
VIRGINIA DIVISION
INDEPENDENCE, VIRGINIA


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 April 2, 2014 by workers of Med-Fit Systems Inc.,
Virginia Division, Independence, Virginia (Med-Fit Systems)
The workers' firm is engaged activities related to the
production of exercise equipment. The petition states
"Increased imports of articles and products" as a reason for
worker separations at the Independence, Virginia facility.
During the course of the investigation, information was
collected from the workers' firm.
With respect to Section 222(a)(2)(A) of the Act, the
investigation revealed that increased imports of articles like
or directly competitive with those produced by the subject
workers did not contribute importantly to workers' separations
at the Independence, Virginia facility.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the subject firm did not shift
production of exercise equipment, or like or directly
competitive articles, to a foreign country which is a party to a
Free Trade Agreement with the United States or to a country that
is named as a beneficiary under the African Growth and
Opportunity Act or the Caribbean Basin Economic Recovery Act.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Med-Fit System is not a Supplier
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 that Med-Fit System does not act as a
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).
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 at Med-Fit
Systems 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 Med-Fit Systems
Inc., Virginia Division, Independence, Virginia, 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 24th day of July 2014.

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