Denied
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TAW-98299  /  DS Services of America, Inc., dba Primo Water North America (Culver, OR)

Petitioner Type: State
Impact Date:
Filed Date: 05/17/2022
Most Recent Update: 06/27/2022
Determination Date: 06/27/2022
Expiration Date:

UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,299

DS SERVICES OF AMERICA, INC.

DBA PRIMO WATER NORTH AMERICA

A WHOLLY OWNED SUBSIDIARY OF PRIMO WATER CORPORATION

CULVER, OREGON

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 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 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 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 May 16, 2022 and filed
on May 17, 2022 by a State Workforce Office, on behalf of former
workers of DS Services of America, Inc., dba Primo Water North
America, a wholly owned subsidiary of Primo Water Corporation,
Culver, Oregon (hereafter referred to as "DS Services of America
"“ Culver, Oregon"). In accordance with 20 CFR 618.110 a worker
group is defined as, ""¦including teleworkers and staffed workers."

DS Services of America, Culver, Oregon is engaged in
activities related to the production and distribution of single-
use low volume bottled water.

The petition alleges that worker separations, or threats
thereof, at DS Services of America - Culver, Oregon is due to the
acquisition of the company by a Canadian company.

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

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of single-use low volume bottled water, or a like or
directly competitive article, to a foreign country. Rather, the
production and distribution of single-use low volume bottled water
shifted domestically and then was subsequently discontinued by the
workers' firm.

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 increased. Likewise, customer imports of articles like or
directly competitive have not increased. Imports were not
reported during the period relevant to the investigation (June
2020 through May 2022).

With respect to Section 222(b)(2) of the Act, the
investigation revealed that DS Services of America - Culver,
Oregon 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 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 worker group must be certified eligible to apply for
Trade Adjustment Assistance (TAA). Because the worker group is
denied eligibility to apply for TAA, the worker group cannot be
certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the
investigation, I determine that all workers of DS Services of
America, Inc., dba Primo Water North America, a wholly owned
subsidiary of Primo Water Corporation, Culver, Oregon, engaged in
activities related to the production of single-use low volume
bottled water 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 27th day of June, 2022


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

Certifying Officer, Office of

Trade Adjustment Assistance