UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-96,863

JETECH, INC.
BATTLE CREEK, MICHIGAN

Negative Determination Regarding Eligibility
To Apply for Trade Adjustment Assistance for Workers

In accordance with Section 223 of the Trade Act of 1974, as amended ("Act"), 19 U.S.C.
§ 2273, the Department of Labor ("Department") herein presents the results of an
investigation regarding certification of eligibility to apply for Trade Adjustment
Assistance ("TAA") for workers.

The investigation was initiated in response to a TAA petition dated April 19, 2021 and
filed on April 20, 2021 by a State Workforce Office, on behalf of workers and former
workers of Jetech, Inc., Battle Creek, Michigan (hereafter referred to as a "group of
workers"). In accordance with 20 C.F.R. 618 a group of workers is defined as,
""¦inclusive of teleworkers and staffed workers."

The worker group is engaged in activities related to the production of high pressure
water jetting pumps, equipment, systems, and accessories and are not separately
identifiable by product.

The petition alleged that worker separations, or threats thereof, were due to the workers'
firm potentially being connected to U.S. International Trade Commission determinations
in other industries.

During the course of the investigation, the Department collected information from the
petitioner(s), the workers' firm, and other relevant sources.

Workers of a firm may be eligible for TAA if they satisfy the criteria of subsection (a), (b)
or (e) of Section 222 of the Trade Act, 19 U.S.C. § 2272(a), (b) and (e).

For the Department to issue a certification for workers under Section 222(a) of the
Trade Act, 19 U.S.C. § 2272(a), the following criteria must be met:

Employment Criterion

(1) A significant number or proportion of the workers in such workers' firm have become
totally or partially separated, or are threatened to become totally or partially separated.
The Department determines that the employment criterion has been met.

Decreased Sales or Production Criterion
(2)(A)(i) The sales or production, or both, of such firm have decreased absolutely.

The sales and production criterion has not been evaluated.

Increased Imports Criterion

Increased Imports Criterion

(2)(A)(ii)(I) Imports of articles or services like or directly competitive with articles
produced or services supplied by such firm have increased;
(II)(aa) imports of articles like or directly competitive with articles into which one or more
component parts produced by such firm are directly incorporated have
increased;
(bb) imports of articles like or directly competitive with articles which are produced
directly using services supplied by such firm, have increased; AND

(III) imports of articles directly incorporating one or more component parts produced
outside the United States that are like or directly competitive with imports of articles
incorporating one or more component parts produced by such firm have increased.
20 C.F.R. 618.110 defines increased imports to mean "that imports have increased
either absolutely or relative to domestic production compared to a representative base
period. The representative base period will be 1 year consisting of the 4 quarters
immediately preceding the date that is 12 months prior to the date of the petition."

The Department determines that the increased imports criterion has not been met. The
workers' firm reported that it did not increase imports of pressure water-jetting pumps,
equipment, systems, and accessories or like or directly competitive articles during the
relevant period under investigation.

Sec. 222(c) of the Trade Act and 20 C.F.R. 618.110 defines contributed importantly as
"a cause that is important but not necessarily more important than any other cause." In
determining contributed importantly, according to 20 C.F.R. 618.225(a)(2)(iv) "(A)
Analysis of the impact of increased imports on worker separations and declines in sales
or production at the workers' firm must generally consist of determining: (1) Whether
there are one or more events, or factors, that lessen or sever the causal nexus between
the increase in imports and worker separations or threat of separation, and the decline
in sales and production at the workers' firm; (2) What percentage of the workers' firm
sales or production declines was attributable to the firm's increased imports; (3) What
percentage of the workers' firm customer(s) sales or production declines was
attributable to the firm's increased imports; and (4) Whether there are other events or
factors that mitigate or amplify the impact of increased imports on the workers' firm. (B)
The impact may be determined using a quantitative or qualitative analysis."

The Department did not make a determination on whether the contributed importantly
criterion was met because the increased imports criterion was not met.

Shift/Acquisition Criterion
(2)(B)(i)(I) there has been a shift by the workers' firm to a foreign country in the
production of articles or the supply of services like or directly competitive with articles
which are produced or services which are supplied by such firm; or (II) such workers'
firm has acquired from a foreign country articles or services that are like or directly
competitive with articles which are produced or services which are supplied by such
firm;

According to 20 C.F.R. 618.225(b)(2)(ii)(B), "Analysis of shift activity must generally
consist of a (1) Comparison of shift data on the petition date to shift data on the date
that is 1 year prior to the petition date; (2) Review of shift activity during the 1-year
period prior to the petition date; and (3) Review of evidence provided by the workers'
firm regarding shift activity scheduled to occur after the petition date."

According to 20 C.F.R. 618.225(b)(2)(iii)(A), "Analysis of impact of shift activity on
worker separations must generally consist of determining: (1) Whether there are one or
more events or factors that sever or lessen the causal nexus between the shift activity
and worker separations or threat of separation; (2) What percentage of the workers'
firm sales or production declines was attributable to the firm's shift activity; (3) Whether
operations at the workers' firm domestic facility or facilities decreased at the same or at
a greater rate than operations at the foreign facility or facilities; and (4) Whether there
are other events or factors that mitigate or amplify the impact of shift activity on the
workers' firm."

According to 20 C.F.R. 618.225(c)(2)(ii), "Analysis of acquisition data must generally
consist of a (A) Comparison of acquisition data on the petition date to acquisition data
on the date that is 1 year prior to the petition date; (B) Review of acquisition data during
the 1-year period prior to the petition date; and (C) Review of evidence provided by the
workers' firm regarding acquisition activity scheduled to occur after the petition date."

According to 20 C.F.R. 618.225(c)(3)(i), "Analysis of impact of acquisition data on
worker separations must generally consist of determining: (A) Whether there are one or
more events or factors that lessen or sever the causal nexus between the acquisition
activity and worker separations or threat of separation; (B) What percentage of the
workers' firm sales or production declines was attributable to the firm's acquisition
activity; (C) Whether operations at the workers' firm domestic facility or facilities
decreased at the same or at a greater rate than contractor or licensee operations in the
foreign country; and (D) Whether there are other events or factors that mitigate or
amplify the impact of acquisition activity on the workers' firm."

The Department determines that the shift/acquisition criterion has not been met. The
investigation revealed that the firm did not shift the production of high pressure water-
jetting pumps, equipment, systems, and accessories or like or directly competitive
articles to a foreign country or acquire high pressure water-jetting pumps, equipment,
systems, and accessories or like or directly competitive articles from a foreign country.

Contributed Importantly Criterion

(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.
Sec. 222(c) of the Trade Act and 20 C.F.R. 618 defines contributed importantly as "a
cause that is important but not necessarily more important than any other cause."

The Department did not make a determination on whether the contributed importantly
criterion was met because the shift/acquisition criterion was not met.

For the Department to issue a certification for workers under Section 222(b) of the
Trade Act, 19 U.S.C. § 2272(b), the following criteria must be met:

Employment Criterion

(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.
The Department determines that the employment criterion has been met.

Supplier/Downstream Producer Criterion

(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 subsection (a), and such
supply or production is related to the article or service that was the basis for such
certification (as defined in subsection (c) (3)and (4)); and Section 222(c)(4) of the Trade
Act, 19 U.S.C. § 2272(c), defines the term "Supplier" to mean "a firm that produces and
supplies directly to another firm component parts for articles, or services, used in the
production of articles or in the supply of services, as the case may be, that were the
basis for a certification of eligibility under subsection (a) of a group of workers employed
by such other firm." Section 222(c)(3) of the Trade Act, 19 U.S.C. § 2272(c), defines the
term "Downstream Producer" to mean "a firm that performs additional, value-added
production processes or services directly for another firm for articles or services with
respect to which a group of workers in such other firm has been certified under
subsection (a)." For purposes of this "Downstream Producer" definition, the Trade Act
provides that, ""¦value-added production processes or services include final assembly,
finishing, testing, packaging, or maintenance or transportation services."
The Department determines that the supplier/downstream producer criterion has not
been met.

20% or Contributed Importantly Criterion

(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 determined under paragraph (I).
20 C.F.R. 618.225(d)(5) states that "the component part supplied represented at least
20 percent of the supplier's production or sales during the 1-year period prior to the
petition date, or loss of business with the firm, during the 1-year period prior to the
petition date, contributed importantly to separations or threat of separation at the
workers' firm." Sec. 222(c) of the Trade Act and 20 C.F.R. 618.110 defines contributed
importantly as, "a cause that is important but not necessarily more important than any
other cause."

The Department did not make a determination on whether the 20% or contributed
importantly criterion was met because the supplier/downstream producer criterion was
not met.

For the Department to issue a certification for workers under Section 222(e) of the Act,
19 U.S.C. § 2272(e), the following criteria must be met:

Member of Domestic Industry Criterion

(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

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));

The Department determines that the member of a domestic industry criterion has not
been met. 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.

Timely Petition Filing Criterion

(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 (B) or (C) of
paragraph (1) is published in the Federal Register; and
The Department did not make a determination on whether the timely petition filing
criterion was met because the member of domestic industry criterion was not met.

Employment Criterion

(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 Department did not make a determination on whether the employment criterion was
met because no finding regarding the timely petition filing criterion was made,

Conclusion

After careful review of the facts obtained in the investigation, I determine that the
requirements of Section 222 of the Trade Act, 19 U.S.C. § 2272, have not been met
and, therefore, deny the petition for group eligibility of Jetech, Inc., Battle Creek,
Michigan, who are engaged in activities related to the production of high pressure
water-jetting pumps, equipment, systems, and accessories to apply for Trade
Adjustment Assistance for workers, in accordance with Section 223 of the Trade Act, 19
U.S.C. § 2273.

Signed in Washington, D.C. this 9th day of June, 2022


JESSICA R. WEBSTER
Certifying Officer, Office of
Trade Adjustment Assistance