Petitioner Type: State
Impact Date:
Filed Date: 10/23/2014
Most Recent Update: 03/31/2016
Determination Date: 12/10/2014
Expiration Date:
Employment and Training Administration
TA-W-85,613
MIDAIR USA INC.
A SUBSIDIARY OF MIDAIR SA
INCLUDING ON-SITE LEASED WORKERS FROM INKA TECH AND AVIATION
RECRUITMENT SERVICES
ROME, NEW YORK
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 23, 2014,
resulted in a negative determination, issued on December 10, 2014,
that was based on the Department’s findings that the subject firm
did not produce an article. The determination was applicable to
workers and former workers of Midair USA Inc., a subsidiary of
Midair SA, including on-site leased workers from Inka Tech, Rome,
New York. The workers’ firm is engaged in activities related to the
supply of aircraft maintenance and repair services.
The petition states that “economic differences between the US
Dollar and the Russian Ruble . . . The inequity of the monetary
system is making it difficult for the customer . . . to maintain
the obligations of paying properly and on time.” The customer
identified in the petition is a Russian airline company.
After the initial determination was issued, the State of New
York requested that the worker group be amended to include on-site
leased workers from Aviation Recruitment Services. Consequently,
the Department clarifies that the subject worker group consists of
workers and former workers of Midair USA Inc., a subsidiary of
Midair SA, including on-site leased workers from Inka Tech and
Aviation Recruitment Services, Rome, New York (Midair USA).
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) of the Act, the
investigation revealed that increased imports of services like or
directly competitive with aircraft maintenance and repair services
did not contribute importantly to worker separations Midair USA.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Midair USA did not shift the supply of
aircraft maintenance and repair services, or like or directly
competitive services, to a foreign country or acquire such
services from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Midair USA is not a Supplier or
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 the
workers’ firm has not been publically 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 Midair USA
Inc., a subsidiary of Midair SA, including on-site leased workers
from Inka Tech and Aviation Recruitment Services, Rome, New York,
to apply for adjustment assistance, in accordance with Section 223
of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 31st 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-85,613
MIDAIR USA INC.
A SUBSIDIARY OF MIDAIR SA
ROME, NEW YORK
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 October 23, 2014 by a State Workforce Agency on behalf of
workers of Midair USA Inc., a subsidiary of Midair SA, Rome, New
York (Midair USA). The workers' firm is engaged in activities
related to the supply of aircraft maintenance and repair services.
The petition states "the cause of the layoff was due to the
issues between the U.S. and Russia . . . the economic differences
between the US Dollar and the Russian Ruble is causing the problem.
The inequity of the monetary system is making it difficult for the
. . . to maintain the obligations of paying properly and on time.
This has affected the staffing . . . ."
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that Midair USA 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 obtained information
that revealed that the workers' firm did not produce an article;
rather, Midair USA supplied services related to the supply of
aircraft maintenance and repair 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 Midair USA Inc., a
subsidiary of Midair SA, Rome, New York, 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 10th day of December, 2014
/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance