Denied
« back to search results

TAW-85925  /  Bimbo Bakeries USA, Inc. (Fullerton, CA)

Petitioner Type: State
Impact Date:
Filed Date: 04/06/2015
Most Recent Update: 12/04/2015
Determination Date: 06/17/2015
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,925

BIMBO BAKERIES USA, INC.
A WHOLLY OWNED SUBSIDIARY OF BBU, INC.
FULLERTON, CALIFORNIA

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 April 6, 2015, resulted
in a negative determination, issued on June 17, 2015, that was
based on predominate cause of layoffs unrelated to imports or
shifts in production. The determination was applicable to workers
and former workers of Bimbo Bakeries USA, Inc., a wholly owned
subsidiary of BBU, Inc., Fullerton, California.
The workers’ firm is engaged in activities related to the
production of baked goods. Specifically, the petitioned worker
group was territorial sales managers located in a non-producing
location of the subject firm.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that increased
imports of baked goods did not contribute to the workers
separations at the subject firm, and the firm has not shifted
production to a foreign country or acquired production from a
foreign country.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that criterion III has not been met
because the firm has experienced a court-ordered divesture of
assets in California and had to separate an excess of Territorial
Sales Managers and distribution workers. Furthermore, the
investigation revealed that Territorial Sales Managers and
distribution workers are not directly tied to any production
facility at the firm.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the production
of baked goods or a like or directly competitive article to a
foreign country or acquire baked goods 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 Bimbo Bakeries USA, Inc. is not a
Supplier or 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 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 Bimbo
Bakeries USA, Inc., a wholly owned subsidiary of BBU, Inc.,
Fullerton, California, who were engaged in employment related to
production of baked goods, specifically work related to territorial
sales managers, to apply for adjustment assistance, in accordance
with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 4th day of December, 2015


/s/Jacquelyn R. Mendelsohn
______________________________
JACQUELYN R. MENDELSOHN
Certifying Officer, Office of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,925

BIMBO BAKERIES USA, INC.
A WHOLLY OWNED SUBSIDIARY OF BBU, INC.
FULLERTON, 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 April 6, 2015 by a State Workforce Office on behalf of
workers of Bimbo Bakeries USA, Inc., a wholly owned subsidiary
of BBU, Inc., Fullerton, California ("worker group"). The
workers' firm is engaged in activities related to the production
of baked goods. Specifically, the workers are territorial
sales managers and distribution workers for Bimbo Bakeries
USA, Inc.
The petitioner alleges that, "Production was shifted to
Tijuana, Mexico thereby impacting sales and distribution in
the United States."
During the course of the investigation, information was
collected from the workers' firm and the petitioner.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that a shift in production abroad did not
contribute importantly to the separations at Bimbo Bakeries-
Fullerton. Rather, the company experienced a court-ordered
divesture of assets in California and had to separate an excess
of Territorial Sales Managers and distribution workers.
With respect to Section 222(a)(2)(A)(iii), the
investigation revealed that imports did not contribute
importantly to the worker separations. The firm has
experienced a court-ordered divesture of assets in California
and had to separate an excess of Territorial Sales Managers
and distribution workers. Furthermore, the investigation
revealed that Territorial Sales Managers and distribution
workers are not directly tied to any production facility at
the firm.
The investigation revealed that the workers' firm is not a
Supplier or 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).
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 Bimbo Bakeries
USA, Inc., a wholly owned subsidiary of BBU, Inc., Fullerton,
California engaged in activities related to the production of
baked goods, 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 17th day of June 2015.


/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance