Denied
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TAW-86041  /  L.A. Darling Company (Piggott, AR)

Petitioner Type: Workers
Impact Date:
Filed Date: 05/29/2015
Most Recent Update: 03/13/2016
Determination Date: 03/13/2016
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration
TA-W-86,041

L.A. DARLING COMPANY
WOOD DIVISION
A SUBSIDIARY OF THE MARMON GROUP
BERKSHIRE HATHAWAY
INCLUDING ON-SITE LEASED WORKERS FROM
PEOPLE RESOURCE AND HOMETOWN EMPLOYMENT
PIGGOTT, ARKANSAS

Negative Determination Regarding Eligibility
To Apply for Worker 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), (b) or
(e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and (e).
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
criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm must
have become totally or partially separated or be threatened
with total or partial separation.
(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) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the component
part produced by the workers' firm was directly
incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article into
which the component part produced by the workers'
firm was directly incorporated have increased.
(iii) the increase in imports 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.
(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or supply
of services like or directly competitive with those
produced/supplied by the workers' firm; OR
(II) there has been an acquisition from a foreign country
by the workers' firm of articles/services that are like
or directly competitive with those produced/supplied by
the workers' firm; and
(ii) the shift described in clause (i)(I) or the acquisition
of articles or services described in clause (i)(II)
contributed importantly to such workers' separation or
threat of separation.

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 or service 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."
Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission as a member of a domestic industry in an investigation
resulting in a category of determination that is listed in
Section 222(e) of the Act, 19 U.S.C. § 2272(e).
The group eligibility requirements for workers of a firm under
Section 222(e) of the Act, 19 U.S.C. § 2272(e), can be satisfied if
the following criteria are met:
(1) the workers' firm is publicly identified by name by the
International Trade Commission as a member of a domestic
industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section 705(b)(1)(A)
or 735(b)(1)(A) of the Tariff Act of 1930 (19
U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A));
(2) the petition is filed during the 1-year period beginning
on the date on which--
(A) a summary of the report submitted to the President
by the International Trade Commission under section
202(f)(1) with respect to the affirmative
determination described in paragraph (1)(A) is
published in the Federal Register under section
202(f)(3); or
(B) notice of an affirmative determination described in
subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b)(1), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on May 29, 2015 on behalf of workers of L.A. Darling Company,
Wood Division, a subsidiary of the Marmon Group, Berkshire
Hathaway, including on-site leased workers from People Resource
and Hometown Employment, Piggott, Arkansas (L.A. Darling-
Piggott). The workers' firm is engaged in activities related to the
production of retail wood cabinets.
The petition states "that production has been impacted due to
import of articles and services like or directly competitive with
LA Darling's wooden store fixtures and has resulted in the closing
of the Piggott Arkansas facility" and referenced earlier
certifications TA-W-52,286 and TA-W-81,146. The more recent of the
afore-mentioned certifications expired on January 12, 2014.
During the course of the investigation, information was
collected from the workers' firm, its major declining customers,
and publically-available sources.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that, during the twelve month period prior
to the petition date, neither the subject firm nor its major
declining customers increased imports of articles like or directly
competitive with the retail wooden cabinets produced by L.A.
Darling-Piggott.
With respect to Section 222(a)(2)(B), the investigation
revealed that L.A. Darling-Piggott did not shift production of
retail wooden cabinets, or like or directly competitive articles,
to a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that L.A. Darling-Piggott 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).
Finally, the group eligibility requirements under Section
222(e) of the Act have not been satisfied because 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.
Rather, information obtained by the Department during the
investigation revealed that worker separations at L.A. Darling-
Piggott are attributable to retail marketing changes, including a
decline in demand of store fixtures and increased use of
electronic/on-line marketing tools.
Conclusion
After careful review of the facts obtained in the
investigation, 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 L.A. Darling Company, Wood
Division, a subsidiary of the Marmon Group, Berkshire Hathaway,
including on-site leased workers from People Resource and
Hometown Employment, Piggott, Arkansas, to apply for adjustment
assistance, in accordance with Section 223 of the Act, 19 U.S.C. §
2273.
Signed in Washington, D.C. this 13th day of March 2016.

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