DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,179

SETTERSTIX, INC.

A WHOLLY OWNED SUBSIDIARY OF SETTER INTERNATIONAL GMBH

CATTARAUGUS, NEW YORK

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
(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 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 Assistance (ATAA) petition dated January 25, 2022 and
filed on January 26, 2022 by a State Workforce Office on behalf
of former workers of Setterstix, Inc., a wholly owned subsidiary
of Setter International GMBH, Cattaraugus, New York (hereafter
referred to as the "group of workers"). In accordance with 20
C.F.R. 618.110 group of workers is defined as, ""¦including
teleworkers and staffed workers." The group of workers is engaged
in activities related to the production of paper lollipop sticks.

The petition alleges that worker separations, or threats
thereof, are "related to a shift in production to a new facility
in Fountain Inn, South Carolina."

During the course of the investigation, information was
collected from the petition and the workers' firm.

With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed no subject firm sales or production decline
during the relevant period (the 1-year period prior to the
petition date).

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of paper lollipop sticks, or a like or directly
competitive article, to a foreign country. Rather, production
shifted to a domestic facility.

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 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 petitioning
group of workers is 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 Setterstix, Inc.,
a wholly owned subsidiary of Setter International GMBH,
Cattaraugus, New York, are denied eligibility to apply for adjust-
ment 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 10th day of February, 2022

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

Certifying Officer, Office of

Trade Adjustment Assistance