DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-96,017

FXI, INC.

A SUBSIDIARY OF FXI HOLDINGS, INC.

INCLUDING ON-SITE LEASED WORKERS FROM ADECCO AND PEOPLELINK

CORRY, PENNSYLVANIA

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. § 2272(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; AND

(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), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on June 29, 2020 by a State Workforce Office on behalf of
workers of FXI, Inc., a subsidiary of FXI Holdings, Inc., Corry,
Pennsylvania ("FXI, Inc."). The workers' firm is engaged in
activities related to the production of foam components for home
furnishings. The subject worker group includes on-site leased
workers from Adecco and Peoplelink.

The petitioner alleged, "TA-W-95,638-FXI, INC. China ITC -
FXI Corry manufactured shredded pillows for this facility and
worked stopped in Feb of 20. Ship compressed foam used in the
supply chain for mattresses, automotive and medical to FXIs
other plants & customers as raw materials. They manufacture
Mattress Toppers and compressed rolls as part of the supply
chain affected by the ITC. Biggest customer of Corry FXI - SSB
Serta Simmons has shifted some of their work to China covered
by TAW 95,277-SSB MAN CO."

During the course of the investigation, information was
collected from the workers' firm, the petitioner, and the major
declining customer(s) of the workers' firm.

With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that FXI, Inc. did not increase imports
of foam components for home furnishings or articles like or
directly competitive. The workers' firm did not report imports
of the aforementioned articles in 2018, 2019, or during the
period of January through May 2020. A survey was conducted of
the major declining customer(s) of the workers' firm regarding
purchases of the aforementioned articles and articles like or
directly competitive. The survey did not reveal an increase of
imports of the aforementioned articles or articles like or
directly competitive during the aforementioned periods.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the production
of foam components or like or directly competitive articles to
a foreign country or acquire foam components or like or directly
competitive articles from a foreign country.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that FXI, Inc. is not a Supplier 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). The investigations under petition numbers TA-W-95,638 and
TA-W-95,277, alleged by the petitioner, did not incorporate foam
components produced by the workers' firm.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that FXI, Inc. 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). The workers' firm did not act as
a finisher for firms whose workers were certified under petition
numbers TA-W-95,638 and TA-W-95,277, as alleged by the petitioner.

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 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 FXI, Inc., a subsidiary of

FXI Holdings, Inc., including on-site leased workers from Adecco
and Peoplelink, Corry, Pennsylvania engaged in activities related
to the production of foam components for home furnishings to
apply for adjustment assistance, in accordance with Section 223 of
the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 27th day of February, 2021.


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

Certifying Officer, Office of

Trade Adjustment Assistance