Petitioner Type: Workers
Impact Date:
Filed Date: 02/04/2022
Most Recent Update: 04/21/2022
Determination Date: 04/21/2022
Expiration Date:
UNITED STATES DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-98,187
THE ENSTROM HELICOPTER CORPORATION
MENOMINEE, MICHIGAN
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 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 such workers' firm, oran appropriate subdivision of the firm, have become totallyor partially separated, or are threatened to become totallyor partially separated
(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 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 Assistance (ATAA) petition dated February 3, 2022 and
filed on February 4, 2022 by a Company Official, on behalf of
former workers of The Enstrom Helicopter Corporation, Menominee,
Michigan. In accordance with 20 CFR 618.110 a worker group is
defined as, ""¦including teleworkers and staffed workers."
The group of workers is engaged in activities related to the
production of light turbine and piston helicopters.
The petition alleges that worker separations, or threats
thereof, were due to "Enstrom manufacturers light helicopters. The
2 largest competitors are Airbus (located in France and Germany),
and Bell Helicopter (headquartered in Texas, but commercial
aircraft are manufactured in Canada). Based on competition from
these foreign manufacturers, Enstrom was unable to secure sales
for new aircraft. Enstrom was wholly owned by a Chinese
conglomerate, and instead of investing the company to make it
competitive, or selling it to someone who would, they elected to
file Chapter 7."
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)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of light turbine or piston helicopters or articles
like or directly competitive to a foreign country.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports of articles like or directly
competitive with the articles produced by the workers' firm have
not increase. The Enstrom Helicopter Corporation, Menominee,
Michigan did not increase imports of light turbine or piston
helicopters or like or directly competitive articles. Imports
were not reported by the workers' firm.
Furthermore, surveys were conducted of The Enstrom
Helicopter Corporation, Menominee, Michigan major declining
customer(s) regarding their purchases of light turbine and/or
piston helicopters and articles like or directly competitive.
The survey revealed no imports of light turbine or piston
helicopters or articles like or directly competitive.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that The Enstrom Helicopter Corporation,
Menominee, Michigan 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that The Enstrom Helicopter Corporation,
Menominee, Michigan 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 Alternative Trade Adjustment Assistance
("ATAA"), the group of workers must be certified eligible to apply
for Trade Adjustment Assistance ("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 The Enstrom
Helicopter Corporation, Menominee, Michigan engaged in activities
related to the production of light turbine and piston helicopters
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 21st day of April, 2022
/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance