UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,077

MELISSA & DOUG, LLC

HEADQUARTERS

COLLECTIONS/SALES SUPPORT UNIT

WILTON, CONNECTICUT

Negative Determinations Regarding Eligibility

To Apply for Worker Adjustment Assistance

And Alternative Trade Adjustment Assistance

TRADE ADJUSTMENT ASSISTANCE

In accordance with Section 223 of the Trade Act of 1974, as
amended ("the Act"), 19 U.S.C. § 2273, the Department of Labor ("the
Department") 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 Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment (ATAA) petition dated October 5, 2021 and filed on October
6, 2021, by a State Workforce Office, on behalf of former workers of
Melissa & Doug LLC, Headquarters, Collections/Sales Support Unit,
Wilton, Connecticut (hereafter referred to as the "group of
workers"). In accordance with 20 C.F.R. 618.110 a group of workers
is defined as, ""¦including teleworkers and staffed workers." The
workers' firm is engaged in activities related to the production of
children's toys. Workers within the Collections/Sales Support Unit
are engaged in activities related to the supply of collections and
sales support services.

The petition alleges that worker separations, or threats
thereof, at Melissa & Doug LLC, Headquarters, Collections/Sales
Support Unit, Wilton, Connecticut, were due to the shift of credit,
collections, and sales support services to Mexico.

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

With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that the workers' firm has not experienced
either a sales or production decline during the relevant period.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of children toys, or a like or directly competitive
article, to a foreign country.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that the workers' firm 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), and does not act as a Downstream Producer to a
firm (or subdivision, whichever is applicable) 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), based on an increase in
imports from, or a shift in production to, Canada or Mexico.

ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE

In order for the Department to issue a certification of
eligibility to apply for ATAA, the group of workers must be certified
eligible to apply for TAA. Because the group of workers are denied
eligibility to apply for TAA, the group of workers cannot be
certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the investigation,
I determine that all workers of Melissa & Doug LLC, Collections/Sales
Support Unit, Wilton, Connecticut, 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 14th day of January, 2022


/s/ Del-Min Amy Chen
_______________________
DEL-MIN AMY CHEN

Certifying Officer, Office of

Trade Adjustment Assistance