Denied
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TAW-95696  /  Nike In House Manufacturing, Inc. dba Nike Air Manufacturing Innovation (Beaverton, OR)

Petitioner Type: State
Impact Date:
Filed Date: 02/18/2020
Most Recent Update: 01/28/2021
Determination Date: 01/28/2021
Expiration Date:












DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-95,696
NIKE IN HOUSE MANUFACTURING, INC. DBA NIKE
AIR MANUFACTURING INNOVATION
TAILWIND FACILITY
A SUBSIDIARY OF NIKE, INC.
INCLUDING ON-SITE LEASED WORKERS FROM MANPOWER, INC.
BEAVERTON, OREGON
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
three criteria must be met:

(1)The first criterion (set forth in Section 222(a)(1) of theAct, 19 U.S.C. § 2272(a)(1)) requires that a significantnumber or proportion of the workers in the workers' firm musthave become totally or partially separated or be threatenedwith total or partial separation.

(2)The second criterion (set forth in Section 222(a)(2) of theAct, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of twoways:

(A)Increased Imports Path:

(i)sales or production, or both, at the workers' firm musthave 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; AND

(iii)the increase in imports described in clause (ii)
contributed importantly to such workers' separation orthreat of separation and to the decline in the salesor 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 foreigncountry by the workers' firm of articles/services thatare like or directly competitive with thoseproduced/supplied by the workers' firm; and

(ii)the shift described in clause (i)(I) or the acquisitionof articles or services described in clause (i)(II)
contributed importantly to such workers' separation orthreat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer." 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 theworkers' firm or an appropriate subdivision of the firmhave become totally or partially separated, or arethreatened to become totally or partially separated;

(2)the workers' firm is a Supplier or Downstream Producerto a firm that employed a group of workers who receiveda certification of eligibility under Section 222(a) ofthe Act, 19 U.S.C. § 2272(a), and such supply orproduction is related to the article or service that wasthe basis for such certification; and

(3)either

(A)the workers' firm is a supplier and the componentparts it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production orsales of the workers' firm;
or

(B)a loss of business by the workers' firm with thefirm described in paragraph (2) contributed importantlyto the workers' separation or threat of separation.

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 theInternational Trade Commission as a member of a domesticindustry in an investigation resulting in--

(A)an affirmative determination of serious injury orthreat thereof under section 202(b)(1);

(B)an affirmative determination of market disruptionor threat thereof under section 421(b)(1); or

(C)an affirmative final determination of materialinjury 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 beginningon the date on which--

(A)a summary of the report submitted to the Presidentby the International Trade Commission under section202(f)(1) with respect to the affirmativedetermination described in paragraph (1)(A) ispublished in the Federal Register under section202(f)(3); or

(B)notice of an affirmative determination described insubparagraph (1) is published in the FederalRegister; 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), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on February 18, 2020, by a State Workforce Office on behalf
of workers of Nike In House Manufacturing, Inc. dba Nike Air
Manufacturing Innovation, Tailwind facility, a subsidiary of
NIKE, Inc., including on-site leased workers from Manpower,
Inc., Beaverton, Oregon. The workers' firm is engaged in
activities related to the production of air bags utilized in
the soles of certain NIKE footwear products and styles.
Specifically, the air bags are used in Vapormax, VZ Pods, 720,
and other specific Air Max footwear models.
During the course of the investigation, information was
collected from the petitioner and workers' firm.

The petition was submitted as an amendment request for an
existing certification under TA-W-93,450. The petitioner
alleged, "Nike Inc. is certified for TAA on Petition # 93450
which runs through 6/28/2020. We are requesting an amendment to
the current petition to include Manpower employees working at
the Nike AIR Manufacturing Innovation site. Manpower workers and
Manpower company officials have stated up to 200 workers have
been laid off in 2 waves "“ October 2019 and January 2020." The
petitioner was notified that the workers' reporting location
identified in the amendment request did not correspond with the
workers' address under TA-W-93,450, or any other active
certifications for the workers' firm. In response to this
discrepancy, the petitioner advised the investigator that TA-W-
95,696 should be regarded as a "new" petition. Clarification for
the affected worker group was provided by the petitioner in a
subsequent email.

With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that the workers' firm has not experienced
a decline in the sales or production of air bags utilized in the
soles of Vapormax, VZ Pods, 720, and other specific Air Max
footwear models. In fact, the firm's sales and production
increased from 2018 to 2019.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift the
production of air bags utilized in the soles of Vapormax, VZ Pods,
720, and other specific Air Max footwear models, to a foreign
country or acquire these products from a foreign country.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that the workers' firm is not a Supplier
or 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 either because Criterion
(1)has not been met since the workers' firm has not been publiclyidentified 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 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 Nike In House Manufacturing,
Inc. dba Nike Air Manufacturing Innovation, Tailwind facility,
a subsidiary of NIKE, Inc., including on-site leased workers
from Manpower, Inc., Beaverton, Oregon, engaged in
activities related to the production of air bags utilized in
the soles of Vapormax, VZ Pods, 720, and other specific Air Max
footwear models, to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 28th day of January, 2021.


/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK

Certifying Officer, Office of

Trade Adjustment Assistance