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TAW-85339  /  Freescale Semiconductor, Inc. (Austin, TX)

Petitioner Type: Workers
Impact Date: 05/28/2013
Filed Date: 05/29/2014
Most Recent Update: 10/16/2015
Determination Date: 10/16/2015
Expiration Date: 10/16/2017

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,339

FREESCALE SEMICONDUCTOR, INC.
AUTO MCU PE/TE C90 BUSINESS UNIT
AUSTIN, TEXAS


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 May 29, 2014, resulted
in a negative determination, issued on July 10, 2014, that was
based on the findings that worker and former workers of Freescale
Semiconductor Inc., Auto MCU PE/TE C90 Business Unit, Austin,
Texas (subject worker group), did not meet the worker group
eligibility of the Trade Act of 1974, as amended. The subject
workers are engaged in the production of semiconductors.

Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that
Freescale Semiconductor Inc. (subject firm) shifted to a
foreign country the supply of articles like or directly
competitive with the semiconductors produced by the subject
worker group which contributed importantly to the workers’
separations.

Section 222(a)(1) has been met because a significant
number or proportion of the workers in Freescale Semiconductor
Inc., Auto MCU PE/TE C90 Business Unit, Austin, Texas, have
become totally or partially separated, 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 articles like or directly
competitive to the articles produced by the subject workers which
contributed importantly to worker group separations at Freescale
Semiconductor Inc., Auto MCU PE/TE C90 Business Unit, Austin,
Texas.

Conclusion

After careful review, I determine that workers of
Freescale Semiconductor Inc., Auto MCU PE/TE C90 Business
Unit, Austin, Texas, who are engaged in activities related
to the production of semiconductors, 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 Freescale Semiconductor Inc., Auto
MCU PE/TE C90 Business Unit, Austin, Texas who became totally
or partially separated from employment on or after May 28,
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 16th day of October, 2015

/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-85,339

FREESCALE SEMICONDUCTOR, INC.
AUTO MCU PE/TE C90 BUSINESS UNIT
AUSTIN, TEXAS

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 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 Trade
Adjustment Assistance (TAA) petition filed on May 29, 2014 on
behalf of workers of Freescale Semiconductor Inc., Auto MCU PE/TE
C90 Business Unit, Austin, Texas ("Freescale" or subject worker
group). Freescale is engaged in activities related to the
production of semiconductors products for the automotive
industry.
The petition states "The products, jobs and work
responsibilities were transferred to the Freescale facilities in
Malaysia and China to reduce costs and improve revenue, gross
margin and profit."
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that Freescale did not shift the
production of semiconductors products, or like or directly
competitive articles, 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, following the shift of production, there are no
actual or likely increased imports of articles like or directly
competitive with those produced by the workers' firm.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Freescale is not 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).
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 Freescale
Semiconductor Inc., Auto MCU PE/TE C90 Business Unit, Austin,
Texas, 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 10th day of July, 2014


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