DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,382

BALDOR ELECTRIC COMPANY
DRIVES CENTER
A SUBSIDIARY OF ABB GROUP
FORT SMITH, ARKANSAS


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 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 June 19, 2014 on behalf of workers of Baldor Electric
Company, Drives Center, a subsidiary of ABB Group, Fort Smith,
Arkansas (Baldor-Drive Center). The workers' firm is engaged in
activities related to the production of electric motors drives.
Workers within Baldor-Drives Center are separately identifiable
by article produced. The petition states "Baldor Electric has a
home office in Switzerland . . . jobs are being affected by
foreign trade."
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 a significant number or proportion of the workers in
Baldor-Drives Center have not become totally or partially
separated, nor are they threatened to become totally or
partially separated, as defined in 29 CFR 90.
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. Since the workers of Baldor-Drives
Center 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 Baldor Electric
Company, Drives Center, a subsidiary of ABB Group, Fort Smith,
Arkansas, who are engaged in activities related to the
production of electric motors drives, 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 8th day of August 2014.

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