TAA Decision 96309
Note: Determinations for this case number, this case number with an alphabetic suffix, and any appeals or amendments appear below.
UNITED STATES DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-96,309
HOWMET CASTINGS AND SERVICES
A WHOLLY OWNED SUBSIDIARY OF HOWMET AEROSPACE
LAPORTE, INDIANA
Negative Determination Regarding Eligibility
To Apply for Trade Adjustment Assistance for Workers
In accordance with Section 223 of the Trade Act of 1974, as amended ("Act"), 19 U.S.C.
§ 2273, the Department of Labor ("Department") herein presents the results of an investigation
regarding certification of eligibility to apply for Trade Adjustment Assistance ("TAA") for
workers.
The investigation was initiated in response to a TAA petition dated September 25, 2020
and filed on September 25, 2020 by State Workforce Office, on behalf of workers and former
workers of Howmet Castings and Services, a wholly owned subsidiary of Howmet Aerospace,
LaPorte, Indiana (hereafter referred to as the "worker group"). In accordance with 20 C.F.R.
618.110 a worker group is defined as, ""¦inclusive of teleworkers and staffed workers."
The worker group is engaged in activities related to the production of turbine engine
components for the aerospace industry and are not separately identifiable.
The petition alleged that worker separations, or threats thereof, were due to foreign trade
because the subject firm was "unable to maintain competitiveness within market and loss of
contracts to other suppliers in aerospace fastener and casting industry."
During the course of the investigation, the Department collected information from the
petitioner(s), the workers' firm, and other relevant sources.
Workers of a firm may be eligible for TAA if they satisfy the criteria of subsection (a),
(b) or (e) of Section 222 of the Trade Act, 19 U.S.C. § 2272(a), (b) and (e).
For the Department to issue a certification for workers under Section 222(a) of the Trade
Act, 19 U.S.C. § 2272(a), the following criteria must be met:
Employment Criterion
(1) A significant number or proportion of the workers in such workers' firm have
become totally or partially separated, or are threatened to become totally or partially
separated.
The Department determines that the employment criterion has been met.
Decreased Sales or Production Criterion
(2)(A)(i) The sales or production, or both, of such firm have decreased absolutely.
The Department determines that the decreased sales or production criterion has been met.
Increased Imports Criterion
(2)(A)(ii)(I) Imports of articles or services like or directly competitive with articles
produced or services supplied by such firm have increased;
(II)(aa) imports of articles like or directly competitive with articles into which one
or more component parts produced by such firm are directly incorporated have
increased;
(bb) imports of articles like or directly competitive with articles which are
produced directly using services supplied by such firm, have increased; AND
(III) imports of articles directly incorporating one or more component parts
produced outside the United States that are like or directly competitive with
imports of articles incorporating one or more component parts produced by such
firm have increased.
20 C.F.R. 618.110 defines increased imports to mean "that imports have increased either
absolutely or relative to domestic production compared to a representative base period. The
representative base period will be 1 year consisting of the 4 quarters immediately preceding the
date that is 12 months prior to the date of the petition."
The Department determines that the increased imports criterion has been met. A survey of
the major declining customer(s) of the workers' firm did reveal an increase in turbine engine
components for the aerospace industry during the relevant period.
Sec. 222(c) of the Trade Act and 20 C.F.R. 618.110 defines contributed importantly as
"a cause that is important but not necessarily more important than any other cause." In
determining contributed importantly, according to 20 C.F.R. 618.225(a)(2)(iv) "(A) Analysis of
the impact of increased imports on worker separations and declines in sales or production at the
workers' firm must generally consist of determining: (1) Whether there are one or more events,
or factors, that lessen or sever the causal nexus between the increase in imports and worker
separations or threat of separation, and the decline in sales and production at the workers' firm;
(2) What percentage of the workers' firm sales or production declines was attributable to the
firm's increased imports;
(3) What percentage of the workers' firm customer(s) sales or production declines was
attributable to the firm's increased imports; and (4) Whether there are other events or factors
that mitigate or amplify the impact of increased imports on the workers' firm. (B) The impact
may be determined using a quantitative or qualitative analysis."
The Department determines that the contributed importantly criterion was not met. A
survey of the major declining customer(s) of the workers' firm revealed that the increase in
imports were de-minus and therefore did not contribute importantly to the workers' separations
and/or the decline in sales and/or production at the workers' firm.
Shift/Acquisition Criterion
(2)(B)(i)(I) there has been a shift by the workers' firm to a foreign country in the
production of articles or the supply of services like or directly competitive with
articles which are produced or services which are supplied by such firm; or
(II) such workers' firm has acquired from a foreign country articles or services that
are like or directly competitive with articles which are produced or services
which are supplied by such firm;
According to 20 C.F.R. 618.225(b)(2)(ii)(B), "Analysis of shift activity must generally
consist of a (1) Comparison of shift data on the petition date to shift data on the date that is 1
year prior to the petition date; (2) Review of shift activity during the 1-year period prior to the
petition date; and (3) Review of evidence provided by the workers' firm regarding shift activity
scheduled to occur after the petition date."
According to 20 C.F.R. 618.225(b)(2)(iii)(A), "Analysis of impact of shift activity on
worker separations must generally consist of determining: (1) Whether there are one or more
events or factors that sever or lessen the causal nexus between the shift activity and worker
separations or threat of separation; (2) What percentage of the workers' firm sales or production
declines was attributable to the firm's shift activity; (3) Whether operations at the workers' firm
domestic facility or facilities decreased at the same or at a greater rate than operations at the
foreign facility or facilities; and (4) Whether there are other events or factors that mitigate or
amplify the impact of shift activity on the workers' firm."
According to 20 C.F.R. 618.225(c)(2)(ii), "Analysis of acquisition data must generally
consist of a (A) Comparison of acquisition data on the petition date to acquisition data on the
date that is 1 year prior to the petition date; (B) Review of acquisition data during the 1-year
period prior to the petition date; and (C) Review of evidence provided by the workers' firm
regarding acquisition activity scheduled to occur after the petition date."
According to 20 C.F.R. 618.225(c)(3)(i), "Analysis of impact of acquisition data on
worker separations must generally consist of determining: (A) Whether there are one or more
events or factors that lessen or sever the causal nexus between the acquisition activity and worker
separations
or threat of separation; (B) What percentage of the workers' firm sales or production declines
was attributable to the firm's acquisition activity; (C) Whether operations at the workers' firm
domestic facility or facilities decreased at the same or at a greater rate than contractor or licensee
operations in the foreign country; and (D) Whether there are other events or factors that mitigate
or amplify the impact of acquisition activity on the workers' firm."
The Department determines that the shift/acquisition criterion has not been met.
Contributed Importantly Criterion
(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.
Sec. 222(c) of the Trade Act and 20 C.F.R. 618 defines contributed importantly as "a cause
that is important but not necessarily more important than any other cause."
The Department did not make a determination on whether the contributed importantly
criterion was met because the shift/acquisition criterion was not met.
For the Department to issue a certification for workers under Section 222(b) of the Trade
Act, 19 U.S.C. § 2272(b), the following criteria must be met:
Employment Criterion
(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.
The Department determines that the employment criterion has been met.
Supplier/Downstream Producer Criterion
(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 subsection (a), and
such supply or production is related to the article or service that was the basis for such
certification (as defined in subsection (c) (3)and (4)); and
Section 222(c)(4) of the Trade Act, 19 U.S.C. § 2272(c), defines the term "Supplier" to
mean "a firm that produces and supplies directly to another firm component parts for articles,
or services, used in the production of articles or in the supply of services, as the case may be,
that were the basis for a certification of eligibility under subsection (a) of a group of workers
employed by such other firm." Section 222(c)(3) of the Trade Act, 19 U.S.C. § 2272(c), defines
the term "Downstream Producer" to mean "a firm that performs additional, value-added
production processes or services directly for another firm for articles or services with respect to
which a group of workers in such other firm has been certified under subsection (a)." For
purposes of this "Downstream Producer" definition, the Trade Act provides that, ""¦value-
added production processes or services include final assembly, finishing, testing, packaging, or
maintenance or transportation services."
The Department determines that the supplier/downstream producer criterion has not been
met. The workers' firm is not a Supplier or Downstream Producer to a firm whose workers
covered under an active certification of eligibility to apply for TAA during the relevant period.
20% or Contributed Importantly Criterion
(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 determined
under paragraph (I).
20 C.F.R. 618.225(d)(5) states that "the component part supplied represented at least 20
percent of the supplier's production or sales during the 1-year period prior to the petition date,
or loss of business with the firm, during the 1-year period prior to the petition date, contributed
importantly to separations or threat of separation at the workers' firm." Sec. 222(c) of the Trade
Act and 20 C.F.R. 618.110 defines contributed importantly as, "a cause that is important but not
necessarily more important than any other cause."
The Department did not make a determination on whether the 20% or contributed
importantly criterion was met because the supplier/downstream producer criterion was not met.
For the Department to issue a certification for workers under Section 222(e) of the Act,
19 U.S.C. § 2272(e), the following criteria must be met:
Member of Domestic Industry Criterion
(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));
The Department determines that the member of a domestic industry criterion has not been
met. The workers' firm was not named in an ITC determination applicable to the Trade Act.
Timely Petition Filing Criterion
(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 (B) or (C) of
paragraph (1) is published in the Federal Register; and
The Department did not make a determination on whether the timely petition filing
criterion was met because the member of domestic industry criterion was not met.
Employment Criterion
(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), the 1-year period preceding the 1-year period
described in paragraph (2).
Conclusion
After careful review of the facts obtained in the investigation, I determine that the
requirements of Section 222 of the Trade Act, 19 U.S.C. § 2272, have not been met and, therefore,
deny the petition for group eligibility of Howmet Castings and Services, a wholly owned
subsidiary of Howmet Aerospace, LaPorte, Indiana, who are engaged in the production of
turbine engine components for the aerospace industry to apply for Trade Adjustment Assistance
for workers, in accordance with Section 223 of the Trade Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 31st day of March, 2021.
/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance