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TAA Decision 81706

Note: Determinations for this case number, this case number with an alphabetic suffix, and any appeals or amendments appear below.

        DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-81,706

BAKER HUGHES INC.
COMPLETIONS DIVISION
MUNCY, PENNSYLVANIA

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

      In accordance with Section 223 of the Trade Act of 1974, 
as amended ("Act"), 19 U.S.C. § 2273, the Department of Labor 
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), (b) 
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and 
(e).  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 criteria must be met:
(1)	The first criterion (set forth in Section 222(a)(1) of 
the Act, 19 U.S.C. § 2282(a)(1)) requires that a 
significant number or proportion of the workers in the 
workers' firm must have become totally or partially 
separated or be threatened with total or partial 
separation.

(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)	(I) 	imports of articles or services like or directly 
competitive with articles or services produced 
or supplied by the workers' firm have increased, 
OR
(II)(aa) imports of articles like or directly 
competitive with articles into which the 
component part produced by the workers' firm was 
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly 
competitive with articles which are produced 
directly using the services supplied by the 
workers' firm have increased; OR
(III) imports of articles directly incorporating 
component parts not produced in the U.S. that 
are like or directly competitive with the 
article into which the component part produced 
by the workers' firm  was directly incorporated 
have increased.
(iii) the increase in imports 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.

(B) Shift in Production or Supply Path:
(i)(I)	there has been a shift by the workers' firm to a 
foreign country in the production of articles or 
supply of services like or directly competitive with 
those produced/supplied by the workers' firm; OR
   (II)	there has been an acquisition from a foreign 
country by the workers' firm of articles/services 
that are like or directly competitive with those 
produced/supplied by the workers' firm; and
(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.

      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 
or service 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."
      Workers of a firm may also be considered eligible if they 
are publicly identified by name by the International Trade 
Commission as a member of a domestic industry in an 
investigation resulting in a category of determination that is 
listed in Section 222(e) of the Act, 19 U.S.C. § 2272(e).
      The group eligibility requirements for workers of a firm 
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), can be 
satisfied if the following criteria are met:
(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 
1673d(b)(1)(A));

(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 (1) is published in 
the Federal Register; and  

	(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)(1), the 1-year 
			period preceding the 1-year period described in 
			paragraph (2).
      
      The investigation was initiated in response to a petition 
filed on June 13, 2012 on behalf of workers of Baker Hughes 
Inc., Completions Division, Muncy, Pennsylvania.  The workers' 
firm is engaged in activities related to the supply of 
warehousing services for tubular goods (pipe) for oil and gas 
exploration.
      The petitioners claimed that the subject location was 
shut down due to not being profitable when compared to foreign 
locations. 
      During the course of the investigation, information was 
collected from the workers' firm. 
      With respect to Section 222(a)(2)(A)(ii) of the Act, the 
investigation revealed that the subject firm did not import 
services like or directly competitive with the services 
supplied by the workers in 2010, 2011, or during January 
through May 2012.  
      With respect to Section 222(a)(2)(B) of the Act, the 
investigation revealed that the firm did not shift the supply 
of services like or directly competitive with warehousing 
services to a foreign country or acquire like or directly 
competitive services from a foreign country.  
      With respect to Section 222(b)(2) of the Act, the 
investigation revealed that Baker Hughes Inc., Completions 
Division, Muncy, Pennsylvania is not 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).
      Finally, the group eligibility requirements under Section 
222(e) of the Act, have not been satisfied because 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. 
Conclusion
	After careful review of the facts obtained in the 
investigation, I determine that the requirements of Section 
222 of the Act, 19 U.S.C. § 2272, have not been met and, 
therefore, deny the petition for group eligibility of Baker 
Hughes Inc., Completions Division, Muncy, Pennsylvania who are 
engaged in activities related to the supply of warehousing 
services to apply for adjustment assistance, in accordance 
with Section 223 of the Act, 19 U.S.C. § 2273. 
Signed in Washington, D.C. this 6th day of September, 2012

	
						/s/Michael W. Jaffe
                                    ______________________________
                                    MICHAEL W. JAFFE
                                    Certifying Officer, Office of 
                                    Trade Adjustment Assistance

      

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