Denied
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TAW-98016  /  Web Industries, Inc. CAD Cut Division (Middlesex, VT)

Petitioner Type: State
Impact Date:
Filed Date: 07/26/2021
Most Recent Update: 01/13/2022
Determination Date: 01/13/2022
Expiration Date:

UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,016

WEB INDUSTRIES INC.

CAD CUT DIVISION

INCLUDING WORKERS WHOSE WAGES WERE REPORTED UNDER

WEB INDUSTRIES INC.

MIDDLESEX, VERMONT

Negative Determinations Regarding Eligibility

To Apply for Worker Adjustment Assistance

And Alternative 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 (ATAA) petition dated July 26, 2021 and filed on July
26, 2021 by a State Workforce Agency, on behalf former workers
of Web Industries Inc., CAD Cut Division, Middlesex, Vermont
(hereafter referred to as the "group of workers"). The worker
group includes workers whose wages were reported under Web
Industries Inc. In accordance with 20 C.F.R. 618.110 a group of
workers is defined as, ""¦including teleworkers and staffed
workers."

The group of workers is engaged in activities related to the
production of composite ply kits for the aerospace industry and
are not separately identifiable by articles produced.

The petition alleges that worker separations are due a
shift in production to other affiliated facilities.

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

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 composite ply kits produced by
the workers' firm have not increased during the relevant
period. Neither the workers' firm nor its major declining
customer(s) increased imports of composite ply kits, or like or
directly competitive articles, during the relevant period.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of composite ply kits, or a like or directly
competitive article, to a foreign country. Rather, production
shifted to another domestic location.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that the workers' firm 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 (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 ATAA, the group of workers must be
certified eligible to apply for TAA. Because the group of
workers are 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 Web Industries
Inc., CAD Cut Division, including workers whose wages were
reported under Web Industries Inc., Middlesex, Vermont, are
denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, as amended, and are also
denied eligibility to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974, amended.

Signed in Washington, D.C. this 13th day of January, 2022


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

Certifying Officer, Office of

Trade Adjustment Assistance