UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,272

PELOTON INTERACTIVE, INC.

PLANO, TEXAS

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 Assistance (ATAA) petition dated April 20, 2022, and
filed on April 21, 2022, by a State Workforce Office, on behalf of
former workers of Peloton Interactive, Inc., Plano, Texas. In
accordance with 20 C.F.R. 618.110 a group of workers is defined as,
""¦including teleworkers and staffed workers." The worker group is
engaged in the supply of services such as IT, Legal, Customer Service
and other services in support of the firm's domestic production of
stationary bicycles and treadmills.

The petition alleges that the company is restructuring to become
more competitive against its competitors and that some of the
company's products are manufactured outside the U.S, which could
have a negative impact on Peloton workers.

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

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the group of workers was not affected by
a shift in production to a foreign country.

With respect to Section 222(a)(2)(A)(iii), the investigation
revealed that increased imports of articles like or directly
competitive with the articles produced by the firm did not
contribute importantly to such workers' separation or threat of
separation or to any decline in sales or production at the workers'
firm.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that Peloton Interactive, Inc., Plano, Texas
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 Peloton Interactive, Inc., Plano, Texas
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
is 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 Peloton Interactive, Inc., Plano,
Texas, are denied eligibility to apply for adjustment assistance
under Section 223 of the Trade Act of 1974, and are also denied
eligibility to apply for Alternative Trade Adjustment Assistance
under Section 246 of the Trade Act of 1974.

Signed in Washington, D.C., this 30th day of June, 2022.


/s/ Jessica R. Webster
_______________________
JESSICA R. WEBSTER

Certifying Officer, Office of

Trade Adjustment Assistance