Petitioner Type: Workers
Impact Date:
Filed Date: 10/08/2014
Most Recent Update: 03/10/2016
Determination Date: 11/14/2014
Expiration Date:
Employment and Training Administration
TA-W-85,579
KEYSTONE WEAVING MILLS, INC.
INCLUDING ON-SITE LEASED WORKERS FROM UNITEMP
LEBANON, PENNSYLVANIA
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 October 8, 2014, resulted
in a negative determination, issued on November 14, 2014. The
determination was applicable to workers and former workers of
Keystone Weaving Mills, including on-site leased workers from
Unitemp, Lebanon, Pennsylvania (“Keystone” or “subject firm”).
The workers are engaged in activities related to production of
fabric for the home furnishing and apparel industry.
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)(2)(A)(ii) of the Act, the
investigation revealed that imports of articles like or directly
competitive with fabric by Keystone, have not increased.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the production
of fabric or a like or directly competitive article to a foreign
country or acquire fabric or a like or directly competitive
article from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Keystone Weaving Mills, including on-
site leased workers from Unitemp, Lebanon, Pennsylvania, 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 Keystone Weaving Mills, including on-
site leased workers from Unitemp, Lebanon, Pennsylvania, 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).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either 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 Keystone
Weaving Mills, including on-site leased workers from Unitemp,
Lebanon, Pennsylvania, to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 10th 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-85,579
KEYSTONE WEAVING MILLS, INC.
INCLUDING ON-SITE LEASED WORKERS FROM UNITEMP
LEBANON, PENNSYLVANIA
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 October 8, 2014 on behalf of the workers of Keystone
Weaving Mills, including on-site leased workers from Unitemp,
Lebanon, Pennsylvania (Keystone or "subject firm"). The worker
group is engaged in activities related to the activities related
to the production of fabric for the home furnishing and apparel
industry. The subject workers were eligible to apply for benefits
under TA-W-34,668. The petition states "textile manufacturing has
shifted to China and India reducing the market here in the USA."
During the course of the investigation, information was
collected from the workers' firm.
With respect to Section 222(a)(2)(A) and Section 222(a)(2)(B)
of the Act, the investigation revealed that the worker separations
are not attributable to increased imports of articles or a shift in
production of articles to a foreign country. Rather, the
investigation confirmed that the worker separations are
attributable to a domestic shift of production.
With respect to Section 222(b) of the Act, the investigation
revealed that Keystone 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 Keystone Weaving
Mills, including on-site leased workers from Unitemp, Lebanon,
Pennsylvania, 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 14th day of November, 2014
/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance