Denied
« back to search results

TAW-98220  /  Decatur Plastic Products, Inc., Alabama Molding Division (Gadsden, AL)

Petitioner Type: State
Impact Date:
Filed Date: 03/11/2022
Most Recent Update: 05/10/2022
Determination Date: 05/10/2022
Expiration Date:

UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,220

DECATUR PLASTIC PRODUCTS, INC.

ALABAMA MOLDING DIVISION

GADSDEN, ALABAMA

TA-W-98,220A

DECATUR PLASTIC PRODUCTS, INC.

ALABAMA FLOCKING DIVISION

GADSDEN, ALABAMA

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
("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 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 Assistance (ATAA) petition dated March 10, 2022, and
filed on March 11, 2022, by a State Workforce Office on behalf of
former workers of Decatur Plastic Products, Inc., Alabama Molding
division, Gadsden, Alabama (TA-W-98,220), and Decatur Plastic
Products, Inc., Alabama Flocking division, Gadsden, Alabama (TA-
W-98,220A) (hereafter referred to as the "group of workers"). In
accordance with 20 CFR 618.110 a worker group is defined as,
""¦including teleworkers and staffed workers."

The group of workers report to two divisions of the firm located
in Gadsden, Alabama. Workers of the Alabama Molding division (TA-W-
98,220) are engaged in activities related to the production of
injection molded plastic components, and workers of the Alabama
Flocking division (TA-W-98,220A) produce flocked plastic
components.

The petitioner alleges that worker separations, or threats
thereof, were "Due to the significant change in overall automotive
market conditions, the company is consolidating its molding
production to Indiana."

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

TA-W-98,220

With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that Decatur Plastic Products, Inc.'s
Alabama Molding division did not experience a decline in
sales/production during the period of investigation. In fact,
sales/production increased when comparing March 2020 through
February 2021 to March 2021 through February 2022. These dates
consist of the representative base period and the one-year period
preceding the representative base period. The firm reported a total
decline in sales/production, however; it occurred outside of the
period under review.

TA-W-98,220A

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 articles produced by Decatur Plastic
Products, Inc.'s Alabama Flocking division have not increased.
Neither firm or customer imports of flocked plastic components
or like or directly competitive articles were reported for the
period of March 2020 through February 2022.

TA-W-98,220 and TA-W-98,220A

Section 222(a)(2)(B) of the Act has not been met because the
investigation revealed that Decatur Plastic Products, Inc. did not
shift the production of injection molded plastic components
produced by the Alabama Molding division, or flocked plastic
components produced by the Alabama Flocking division, or like
or directly competitive articles to a foreign country.

Section 222(b)(2) of the Act has been met because the
investigation revealed that Decatur Plastic Products, Inc.'s
Alabama Molding and Alabama Flocking divisions are Suppliers to
firms 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 articles
that were the bases for such certifications.

Section 222(b)(3)(A) of the Act has not been met because the
investigation revealed that the component parts that Decatur

Plastic Products, Inc.'s Alabama Molding and Alabama Flocking
divisions supplied to firms 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) did not comprise of at least 20
percent of the sales/production of the workers' firm, individually
or collectively.

Section 222(b)(3)(B) of the Act has not been met because the
investigation revealed that the loss of business by Decatur Plastic
Products, Inc.'s Alabama Molding and Alabama Flocking divisions
with firms 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) did not contribute importantly to the workers'
separation or threat of separation.

Section 222(b)(2) of the Act has not been met because the
investigation revealed that Decatur Plastic Products, Inc.'s
Alabama Molding and Alabama Flocking divisions do not act as
Downstream Producers 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 Alternative Trade Adjustment Assistance
("ATAA"), the group of workers must be certified eligible to apply
for Trade Adjustment Assistance ("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 Decatur Plastic
Products, Inc., Alabama Molding division, Gadsden, Alabama (TA-W-
98,220), and Decatur Plastic Products, Inc., Alabama Flocking
division, Gadsden, Alabama (TA-W-98,220A), engaged in activities
related to the production of injection molded plastic components
and flocked plastic components, 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 10th day of May, 2022


/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK

Certifying Officer, Office of

Trade Adjustment Assistance