Denied
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TAW-85222  /  Air System Components, Inc. (Ponca City, OK)

Petitioner Type: Union
Impact Date:
Filed Date: 04/11/2014
Most Recent Update: 03/03/2016
Determination Date: 05/20/2014
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,222

AIR SYSTEM COMPONENTS, INC.
BUILDING PRODUCTS DIVISION
PONCA CITY, OKLAHOMA

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 April 11, 2014, resulted
in a negative determination, issued on May 20, 2014. The
determination was applicable to workers and former workers of Air
System Components, Inc., Building Products Division, Ponca City,
Oklahoma. The workers’ firm is engaged in activities related to the
production of heating, ventilation, and air conditioning (HVAC)
system components.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the
requirements for certification have not been met.
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,” as defined in 20 CFR 90.2, have not become totally
or partially separated, nor are they threatened to become totally
or partially separated.
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either 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 Air System
Components, Inc., Building Products Division, Ponca City,
Oklahoma, who were engaged in employment related to the production
of heating, ventilation, and air conditioning (HVAC) system
components to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 3rd day of March, 2016


/s/Jessica R. Webster
______________________________
JESSICA R. WEBSTER
Certifying Officer, Office of
Trade Adjustment Assistance






DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,222

AIR SYSTEM COMPONENTS, INC.
BUILDING PRODUCTS DIVISION
PONCA CITY, OKLAHOMA

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 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 11, 2014 by the Sheet Metal Workers'
International Association (SMWIA), Local 464, on behalf of
workers of Air System Components, Inc., Building Products
Division, Ponca City, Oklahoma. The workers' firm is engaged in
activities related to the production of Heating, Ventilation,
and Air Conditioning (HVAC) system components.
The petitioner alleged that the worker separations are
the result of the lack of production needs at the facility due
to a shift in production to a foreign country. 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 less than five percent of the workers in such
workers' firm, have 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 (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 Air System
Components, Inc., Building Products Division, Ponca City,
Oklahoma, engaged in activities related to the production of
Heating, Ventilation, and Air Conditioning (HVAC) system
components 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 20th day of May, 2014.

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