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TAW-85386  /  Covidien LP (Mansfield, MA)

Petitioner Type: Company
Impact Date: 06/19/2013
Filed Date: 06/19/2014
Most Recent Update: 09/18/2015
Determination Date: 09/18/2015
Expiration Date: 09/18/2017

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,386

COVIDIEN LP
INFORMATION SERVICES DIVISION
MANSFIELD, 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 June 19, 2014, resulted
in a negative determination, issued on July 17, 2014 that was
based on the findings that Covidien LP, Information Services
Division, Mansfield, Massachusetts (Covidien) does not produce
an article within the meaning of Section 222(a) or Section
222(b) of the Act. The determination was applicable to workers
and former workers of Covidien.

Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the
firm shifted to a foreign country the supply of services like
or directly competitive with the services supplied by the
workers which 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 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 services like or directly competitive
with the information system services supplied by the workers
which contributed importantly to worker group separations at
Covidien.

Conclusion

After careful review, I determine that workers of Covidien LP,
Information Services Division, Mansfield, Massachusetts, who
are engaged in activities related to the supply of information
system 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 Covidien LP, Information Services Division,
Mansfield, Massachusetts who became totally or partially
separated from employment on or after June 19, 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 18th day of September, 2015

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




DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-85,386

COVIDIEN LP
INFORMATION SYSTEMS DIVISION
MANSFIELD, 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 June 19, 2014 by a company official on behalf of workers
of Covidien LP, Information Systems Division, Mansfield,
Massachusetts. The workers' firm is engaged in activities related
to the supply of information systems services.
The petitioners claimed that services were outsourced to
India.
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that Covidien LP, Information
Systems Division, Mansfield, 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
Information systems 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 Covidien LP,
Information Systems Division, Mansfield, Massachusetts engaged in
activities related to the supply of information systems 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 17th day of July 2014.

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