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TAA Decision 97043

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-97,043 
LOVE'S BAKERY, INC. 

HONOLULU, HAWAII 
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 June 28, 2021 and filed 
on June 29, 2021 by a State Workforce Office, on behalf of workers and former workers of Love's 
Bakery, Inc., Honolulu, Hawaii (hereafter referred to as a "group of workers"). In accordance with 
20 C.F.R. 618 a group of workers is defined as, ""¦inclusive of teleworkers and staffed workers." 

The worker group is engaged in activities related to the production of baked goods and are 
not separately identifiable by product. 

The petition alleged that worker separations, or threats thereof, were due to imports. 

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 not been met. The 
investigation revealed that the workers' firm did not increase imports. 

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 did not make a determination on whether the contributed importantly 
criterion was met because the increased imports criterion was not met. 

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. The 
investigation revealed that the workers' firm did not shift production to another country or acquired 
production from a foreign country. 

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. 

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 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. 

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). 
The Department did not make a determination on whether the employment criterion was 
met because no finding regarding the timely petition filing criterion was made. 
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 Love's Bakery, Inc., Honolulu, Hawaii, who are engaged 
in activities related to the production of baked goods 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 13th day of September, 2021 

/s/ Del-Min Amy Chen
_______________________
DEL-MIN AMY CHEN 

Certifying Officer, Office of

Trade Adjustment Assistance 


      

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