Petitioner Type: State
Impact Date:
Filed Date: 10/10/2014
Most Recent Update: 03/17/2016
Determination Date: 11/12/2014
Expiration Date:
Employment and Training Administration
TA-W-85,585
AGCO
BELOIT, KANSAS
TA-W-85,585A
AGCO
HESSTON, KS
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 October 10, 2014,
resulted in a negative determination, issued on November 12, 2014,
that was based on the Department’s finding of no shift production
of tillage tools, or like or directly competitive articles, to a
foreign country; no increased imports of tillage tools, or like or
directly competitive articles, during the relevant period; and that
the subject firm is neither a Supplier to, nor a Downstream
Producer for, 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). The determination was applicable to workers and
former workers of AGCO, Beloit, Kansas. The initial
investigation and, consequently, the initial determination, did
not include the Hesston, Kansas location.
The workers’ at the Beloit, Kansas location (TA-W-85,585) are
engaged in activities related to the production tillage tools such
as soil conditioners, land finishers, chisels, field cultivators,
disc harrows, and seed drills (hereafter referred to as “tillage
tools”). The worker group does not include on-site leased workers.
The workers’ at the Hesston, Kansas location (TA-W-85,585A)
are engaged in activities related to the production harvesting and
planting equipment such as combines, round balers, square balers,
large square balers, windrowers and planters (hereafter referred to
as “harvesting and planting equipment”). The worker group does not
include on-site leased workers.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the
requirements for certification have not been met by the worker
group at either the Beloit, Kansas or Hesston, Kansas locations.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that there were no increased imports by
AGCO of tillage tools or harvesting and planting equipment, or
like or directly competitive articles, during the relevant
period.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that AGCO did not shift the production of
tillage tools or harvesting and planting equipment, or like or
directly competitive articles, to a foreign country or acquire
tillage tools or harvesting and planting equipment, or like or
directly competitive articles, from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that AGCO 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 AGCO does not act as a 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).
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 AGCO, Beloit,
Kansas (TA-W-85,585) and AGCO, Hesston, Kansas (TA-W-85,585A) to
apply for adjustment assistance, in accordance with Section 223 of
the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 17th 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-85,585
AGCO
BELOIT, KANSAS
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 10, 2014 by a State Workforce Office on behalf of
workers of AGCO, Beloit, Kansas (AGCO). The workers' firm is
engaged in activities related to the production of tillage tools
such as soil conditioners, land finishers, chisels, field
cultivators, disc harrows, and seed drills (hereafter referred
to as "tillage tools"). The worker group does not include on-
site leased workers.
The petition states "AGCO has manufacturing and assembly in
Canada there is also assembly of products in Mexico. AGCO
Manufacturing is also performed in several non-trade agreement
countries including China, Malaysia, and Brazil."
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that AGCO did not shift production of
tillage tools, or like or directly competitive articles, to a
foreign country.
With respect to Section 222(a)(2)(A)(ii), the investigation
revealed that there were no increased imports of tillage tools,
or like or directly competitive articles, during the relevant
period.
With respect to Section 222(b)(2) of the Act, AGCO is
neither a Supplier to, nor a Downstream Producer for, 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. 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 AGCO, Beloit,
Kansas, 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 12th day of November, 2014
/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance