DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,840

NESTLE USA
NORTH AMERICA PROCUREMENT DIVISION
A SUBSIDIRY OF NESTLE SA
INCLUDING ON-SITE LEASED WORKERS FROM ADECCO USA
GLENDALE, CALIFORNIA

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 on February 19, 2015, resulted in a negative determination, issued on May 1, 2015, that was based on the Department’s findings that the subject firm did not shift production of coffee or tea, or like or directly competitive articles, to a foreign country; that imports of articles like or directly competitive with those produced by the subject firm did not increase; and that the subject firm was neither a supplier nor a downstream producer. The determination was applicable to workers and former workers of Nestle USA, North America Procurement Division, a subsidiary of Nestle SA, Glendale, California (Nestle-Procurement).
Workers of Nestle-Procurement are engaged in activities related to the supply of procurement services for Nestle USA. The subject worker group includes on-site leased workers from Adecco USA.
Based on information reviewed during the reconsideration investigation, the Department of Labor determines that the subject firm shifted the supply of procurement services to a foreign country, which contributed importantly to the workers separations at Nestle-Procurement.
Section 222(a)(1) has been met because a significant number or proportion of the workers in Nestle-Procurement 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 the supply of a(n) service like or directly competitive with the procurement services supplied by the workers which contributed importantly to worker group separations at Nestle-Procurement.
Conclusion
After careful review, I determine that workers of Nestle USA, North America Procurement Division, a subsidiary of Nestle SA, Glendale, California, who are engaged in activities related to supply of procurement 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 Nestle USA, North America Procurement Division, a subsidiary of Nestle SA, including on-site leased workers from Adecco USA, Glendale, California, who became totally or partially separated from employment on or after February 18, 2014 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 12th day of December, 2015


/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-85,840

NESTLE USA
NORTH AMERICA PROCUREMENT DIVISION
A SUBSIDIRY OF NESTLE SA
INCLUDING ON-SITE LEASED WORKERS FROM ADECCO USA
GLENDALE, CALIFORNIA


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 February 19, 2015 by a State Workforce Office on
behalf of workers of Nestle USA, North America Procurement
Division, a subsidiary of Nestle SA, Glendale, California
(Nestle USA). The workers' firm is engaged in activities
related to the production of coffee and tea. The affected worker
groups are engaged in activities related to the supply of
procurement services.
The worker groups also included on-site leased/temporary
workers from Adecco USA.
The petitioners alleged "The purchasing dept was outsourced
to Phillippines."
During the course of the investigation, information was
collected from the workers' firm.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Nestle USA, did not shift the
production of coffee or tea, or like or directly competitive
articles, to any foreign country.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that that Criterion (2)(A)(ii) has not
been met because imports of coffee and tea produced by Nestle
USA, have not increased during the relevant period. The subject
firm did not report increased imports of coffee and tea, or like
or directly competitive articles.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Nestle USA, 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
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 Nestle USA, North
America Procurement Division, a subsidiary of Nestle SA,
including on-site leased/temporary workers from Adecco USA,
Glendale, California engaged in activities related to the
production of coffee and tea 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 1st day of May, 2015


/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance