Petitioner Type: Union
Impact Date:
Filed Date: 08/05/2014
Most Recent Update: 03/30/2016
Determination Date: 09/03/2014
Expiration Date:
Employment and Training Administration
TA-W-85,464
EXELIS INCORPORATED
NIGHT VISION & COMMUNICATION SOLUTIONS (NVCS) DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM
TAD PGS, OLSTEN STAFFING, PROFESSIONAL NETWORK SERVICES AND
GLOBAL COMPUTER ASSOCIATES
ROANOKE, 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 August 05, 2014,
resulted in a negative determination, issued on September 3, 2014,
that was based on the Department’s findings that the subject firm did
not shift production of night vision devices to a foreign country;
that imports of night vision devices, or like or directly competitive
articles, did not increase during the relevant period; and that the
subject firm is neither a Supplier nor a Downstream Producer. The
determination is applicable to workers and former workers of Exelis
Incorporated, Night Vision & Communication Solutions (NVCS) Division,
Roanoke Virginia (Exelis-NVCS). Workers of Exelis-NVCS are engaged in
activities related to the production of night vision devices. The
Exelis-NVCS worker group includes on-site leased workers from on-site
leased workers of TAD PGS, Olsten Staffing, Professional Network
Services, and Global Computer Associates.
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)(ii) of the Act, the
investigation revealed that, during the relevant period, neither
the subject firm nor the subject firm’s major declining customers
increased imports of articles like or directly competitive with the
night vision devices produced by Exelis-NVCS.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the subject firm did not shift production
of night vision devices, or a like or directly competitive article,
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 Exelis-NCVS is neither a Supplier nor 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 Criterion (1) has not
been met since the workers’ firm has not been publicly 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
all workers of Exelis Incorporated, Night Vision & Communication
Solutions (NVCS) Division, including on-site leased workers of TAD
PGS, Olsten Staffing, Professional Network Services, and Global
Computer Associates, Roanoke, 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 30th 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-85,464
EXELIS INCORPORATED
NIGHT VISION & COMMUNICATION SOLUTIONS (NVCS) DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM
TAD PGS, OLSTEN STAFFING, PROFESSIONAL NETWORK SERVICES AND
GLOBAL COMPUTER ASSOCIATES
ROANOKE, 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 August 5, 2014 by International Union of Electronic,
Electrical Salaried, Machine and Furniture Workers-
Communication Workers of America (IUE-CWA), Local 82162, on
behalf of workers of Exelis Incorporated, Night Vision &
Communication Solutions (NVCS) Division, Roanoke, Virginia
(Exelis Incorporated). The workers' firm is engaged activities
related to the production of night vision devices. The worker
group includes on-site leased workers of TAD PGS, Olsten
Staffing, Professional Network Services, and Global Computer
Associates.
The petition states "Production has been shifted to foreign
countries. This comes as a direct result of Exelis being outbid
on contracts by foreign-based companies."
During the course of the investigation, information was
collected from the workers' firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that the subject firm produces night
vision devices predominantly for the United States military.
Worker separations are attributable to a reduction in defense
spending and loss of government contracts.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the subject firm did not shift
production of night vision devices, or like or directly
competitive articles, to a foreign country, that is a part of a
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.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Exelis Incorporated 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 Exelis Incorporated, 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 Exelis
Incorporated, 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 Exelis
Incorporated, Night Vision & Communication Solutions (NVCS)
Division, including on-site leased workers of TAD PGS, Olsten
Staffing, Professional Network Services, and Global Computer
Associates, Roanoke, 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 3rd day of September 2014.
/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance