Weirton Steel Corporation, Weirton, WV; Negative Determination on Remand, 52066-52070 [E8-20688]
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52066
Federal Register / Vol. 73, No. 174 / Monday, September 8, 2008 / Notices
All meetings are held at the Foreign
Claims Settlement Commission, 600 E
Street, NW., Washington, DC. Requests
for information, or advance notices of
intention to observe an open meeting,
may be directed to: Administrative
Officer, Foreign Claims Settlement
Commission, 600 E Street, NW., Room
6002, Washington, DC 20579.
Telephone: (202) 616–6988.
Mauricio J. Tamargo,
Chairman.
[FR Doc. E8–20879 Filed 9–4–08; 4:15 pm]
BILLING CODE 4410–01–P
automotive ignition wire assemblies to
Mexico.
The amended notice applicable to
TA–W–63,448 is hereby issued as
follows:
All workers of Prestolite Wire LLC,
including on-site leased workers from Talent
Tree, Tifton, Georgia, who became totally or
partially separated from employment on or
after July 14, 2008, through June 10, 2010, are
eligible to apply for adjustment assistance
under Section 223 of the Trade Act of 1974,
and are also eligible to apply for alternative
trade adjustment assistance under Section
246 of the Trade Act of 1974.
Signed at Washington, DC, this 28th day of
August 2008.
Elliott S. Kushner,
Certifying Officer, Division of Trade
Adjustment Assistance.
[FR Doc. E8–20690 Filed 9–5–08; 8:45 am]
DEPARTMENT OF LABOR
Employment and Training
Administration
BILLING CODE 4510–FN–P
[TA–W–63,448]
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Prestolite Wire LLC, Including On-Site
Leased Workers From Talent Tree,
Tifton, GA; Amended Certification
Regarding Eligibility To Apply for
Worker Adjustment Assistance and
Alternative Trade Adjustment
Assistance
In accordance with Section 223 of the
Trade Act of 1974 (19 U.S.C. 2273), and
Section 246 of the Trade Act of 1974 (26
U.S.C. 2813), as amended, the
Department of Labor issued a
Certification of Eligibility to Apply for
Worker Adjustment Assistance and
Alternative Trade Adjustment
Assistance on June 10, 2008, applicable
to workers of Prestolite Wire LLC,
including on-site leased workers of
Talent Tree, Tifton, Georgia. The notice
was published in the Federal Register
on June 27, 2008 (73 FR 36575).
At the request of the State agency, the
Department reviewed the certification
for workers of the subject firm. The
workers were engaged in the production
of automotive ignition wire assemblies.
Findings show that there was a
previous certification, TA–W–59,531,
issued on July 13, 2006, for the workers
of Prestolite Wire LLC, Tifton, Georgia.
That certification expired on July 13,
2008. To avoid an overlap in worker
group coverage for the workers of the
Tifton, Georgia location, the
certification is being amended to change
the impact date from May 29, 2007 to
July 14, 2008.
Accordingly, the Department is
amending the certification to properly
reflect this matter.
The intent of the Department’s
certification is to include all workers of
Prestolite Wire LLC who were adversely
affected by a shift in production of
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DEPARTMENT OF LABOR
Employment and Training
Administration
[TA–W–54,455]
Weirton Steel Corporation, Weirton,
WV; Negative Determination on
Remand
On April 30, 2008, the U.S. Court of
International Trade (USCIT) remanded
United Steel, Paper and Forestry,
Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers
International Union, Local 2911 v.
United States Secretary of Labor, Court
No. 04–00492, to the U.S. Department of
Labor (Department) for further
investigation.
On March 9, 2004, an official of
Weirton Steel Corporation (subject firm)
filed a petition for Trade Adjustment
Assistance (TAA) and Alternative Trade
Adjustment Assistance (ATAA) on
behalf of workers of Weirton Steel
Corporation, Weirton, West Virginia
(subject facility). AR 2. Workers at the
subject facility produce hot-rolled, coldrolled, tin-plate and hot-dipped, and
electrolytic galvanized steel. AR 2, 48.
The workers are not separately
identifiable by specific product. AR 48.
On April 23, 2002, workers at Weirton
Steel Corporation, Weirton, West
Virginia were certified eligible to apply
for TAA (TA–W–39,657; certification
was issued on April 23, 2002 and
expired on April 23, 2004). SAR 18.
The initial investigation revealed that
the subject firm neither imported steel
products nor shifted steel production to
a foreign country in the one year prior
to the petition date (March 9, 2003
through March 9, 2004). AR 102. The
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initial investigation also revealed that
although subject firm production
declined in 2003 from 2002 levels and
declined during January through
February 2004 compared with the
corresponding period in 2003, subject
firm sales increased in 2003 compared
with 2002, and increased in January
through February 2004 compared with
the corresponding period in 2003. AR
102.
The Department surveyed fifteen of
the subject firm’s major declining
customers regarding their purchases of
the principal product types of steel sold
by the subject firm in 2002, 2003,
January through March 2003, and
January through March 2004. The
majority of respondents reported either
no imports or declining imports. The
survey also revealed that for those
customers that did increase import
purchases, the imports were
substantially less than one percent of
the subject firm’s sales or production.
AR 102.
Aggregate data of the major steel
products manufactured by the subject
facility during the relevant period (hotrolled carbon sheet, cold-rolled carbon
sheet, hot-dipped galvanized sheet and
strip, galvanized electrolytic carbon
sheet and strip, and tin mill products)
indicated that imports of these products
declined, both absolutely and relative to
shipments, in 2003 compared with
2002, and continued to decline in the
first quarter of 2004 compared with the
corresponding period of 2003. AR 102.
The Department’s negative
determination regarding the subject
workers’ eligibility to apply for worker
adjustment assistance was issued on
May 14, 2004. AR 103. The
Department’s Notice of determination
was published in the Federal Register
on June 2, 2004 (69 FR 31135). AR 104.
By letter dated June 18, 2004, the
Independent Steelworkers Union (ISU),
via their counsel, requested
administrative reconsideration of the
Department’s negative determination
applicable to the subject workers. AR
119. The ISU requested that the
investigation period be extended in
order to include information regarding
subject firm sales declines and import
impact that were the basis for an
expired TAA certification (TA–W–
39,657; certified on April 23, 2002). AR
119–194.
The Notice of Negative Determination
Regarding Application for
Reconsideration (issued on July 23,
2004) stated that information on events
that occurred before the relevant period
cannot be the basis for TAA certification
in the immediate case. AR 195. The
Department’s Notice of determination
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was published in the Federal Register
on August 4, 2004 (69 FR 47184). AR
198.
By letter dated September 14, 2004,
the Independent Steelworkers Union
(ISU) requested that the expired
certification for TA–W–39,657 be
amended to include workers separated
from the subject facility after the end of
the original certification period (April
23, 2004). SAR 12.
The request for amendment stated
that, on May 18, 2004, ‘‘substantially all
of the production assets of Weirton Steel
Corporation were acquired out of
bankruptcy by International Steel
Group, Inc. (ISG)’’ and ‘‘Weirton ceased
to exist as a producer of steel and
several hundred additional employees
were permanently separated from the
company.’’ SAR 13. The letter asserts
that the intent of the request is to
provide TAA eligibility to those workers
who stayed with the subject firm after
the expiration of the certification in
order to effectuate the sale of assets,
which took place on May 18, 2004. SAR
12. In support of the request, the ISU
cited two cases in which the
Department extended the certification
date (O/Z–Gedney Co., Division of EGS
Electrical Group, Terrytown,
Connecticut; TA–W–38,569 and
Wiegand Appliance Division, Emerson
Electric Company, Vernon, Alabama;
TA–W–39,436). SAR 14.
On September 24, 2004, the
Department issued a letter in which the
Plaintiff was notified that its request
had been denied. The letter explained
that the Department extends the
certification period, before it expires, in
those cases where workers were
retained beyond the certification period
in order to assist with the closure of the
facility after production had ceased. The
Department’s letter stated:
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You referred to two trade petition
certifications where the expiration dates were
extended, specifically, O/Z Gedney
Company, Division of EGS Electrical Group,
Terryville, Connecticut (TA–W–38,569) and
Wiegand Appliance Division, Emerson
Electric Company, Vernon, Alabama (TA–W–
39,436). In each of these cases, workers were
retained to assist with the plant closure after
production had ceased. That is not the case
for workers at Weirton Steel. Production of
steel products at the Weirton, West Virginia
plant continued during the period relevant to
the investigation.
SAR 16–17.
By letter to the USCIT, dated October
1, 2004, the United Steel, Paper and
Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service
Workers International Union, Local
2911 (Plaintiff) sought judicial review of
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the July 23, 2004 determination denying
reconsideration in this matter.
The complaint stated that the
Plaintiff’s challenges are ‘‘(1) the final
determination in the investigation
regarding certification of eligibility of
former employees of Weirton Steel
Corporation, Weirton, West Virginia, to
apply for worker adjustment assistance,
Case No. TA–W–54,455, and (2) the
final negative determination in response
to a request for an amendment of the
certification in Case No. TA–W–39,657
to extend the expiration date of that
certification from April 23, 2004 to May
18, 2004, so as to guarantee eligibility
for all former employees of Weirton
Steel who were adversely affected by
increased imports.’’
Plaintiff’s first claim is that ‘‘the
Department’s use of a one-year
‘representative base period’ in this case
ignored the reality that in certain
industries, such as steel, there was the
possibility or even the likelihood of a
lag time of more than one or two years
between import surges and workers
separations.’’
Plaintiff’s second claim is that the
Department has much discretion as to
how it gathers and analyzes information
in determining whether increased
imports contributed importantly to
worker separations, and that regulations
should not be construed as a ‘‘bar to a
more expansive inquiry where there are
compelling reasons for a broader
examination.’’
Plaintiff’s third claim is that the
Department is not precluded by the
statute or the regulation from
considering ‘‘only imports during the
two years prior to the date of the
petition, or during any particular period
of time.’’
Plaintiff’s fourth claim is that while
amendments are absent in both the
statute and the regulation, the
Department has not supported its
decision (to not extend the certification
period to May 18, 2004) with substantial
evidence and has failed to reconcile the
decision with other cases where
requests for amendments to extend the
period of certification were granted.
The Department filed its
administrative record with the USCIT
supporting its decision. On November
17, 2006, the USCIT issued its opinion
which sustained the Department’s
negative determination applicable to
TA–W–54,455. The USCIT also stated
that it possessed jurisdiction to review
the Department’s decision not to grant
the request to extend the certification of
TA–W–39,657 and that it was reserving
judgment pending the Department’s
submission of additional documentation
related to the amendment request. The
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court remanded the case to the
Department ‘‘with instructions to
assemble and submit to the court the
administrative record regarding
plaintiff’s amendment claim.’’ Slip. Op.
at 31. On January 27, 2007, the
Department filed a supplemental
administrative record with the USCIT in
accordance with that order.
In its April 30, 2008 remand order,
the Court considered the Department’s
decision, in addition to the
Department’s supplemental
administrative record, which refused to
extend the prior determination and
remanded the matter to the Department
for it to provide a fuller explanation of
its refusal to extend the certification.
The USCIT, in its order, directed the
Department to: (1) Clarify the basis of
and to fully explain any decision it
reaches; (2) establish the facts upon
which it makes its determination and
state precisely why it is, or is not,
significant that the Weirton plant did
not close; (3) clearly explain why, if at
all, the Weirton workers who lost their
jobs after April 23, 2004, should be
treated differently than those who lost
their jobs prior to that date; (4) set forth
its current and past policy regarding
amendments to the expiration date of
certifications; (5) explain how the case
at hand is different, if at all, from
previous cases where it extended
worker certifications; (6) set forth all
steps, if any, taken to change its policy
with respect to extensions, including
any measures taken to notify the public,
and the dates on which all such steps
were undertaken; (7) set forth the
criteria upon which it makes any
determination to extend or not to extend
the subject certification; and (8) explain
why its determination is in accord with
the remedial nature of the TAA statute.
In order to better explain the
Department’s determination, the
Department has addressed the USCIT’s
concerns in a different order than above
and has included facts relevant to TA–
W–39,657 as well as the history of the
administration of the Trade program.
Relevant Facts of TA–W–39,657
On April 23, 2002, the Department
issued a certification applicable to
workers and former workers of Weirton
Steel Corporation, Weirton, West
Virginia (TA–W–39,657) who produced
hot and cold rolled coated carbon steel.
The certification was based on the
finding that, during the relative period,
sales, production, and employment at
the subject firm decreased while ‘‘U.S.
aggregate imports of cold-rolled carbon
steel sheet increased both absolutely
and relative to domestic shipments’’
during the relative period. SAR 18–19.
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In May 2003, Weirton filed for
bankruptcy. AR 122, SAR 13. During
this bankruptcy proceeding, Weirton
agreed to sell to ISG (a competitor) its
assets, including steel production
equipment at the Weirton, West Virginia
location. SAR 13. During the transition
period between the bankruptcy filing
and the sale of its assets to ISG, over
three hundred workers employed by
Weirton, AR 2, 46, 50, 96, continued to
produce steel at the Weirton, West
Virginia facility. AR 49–50, SAR 13–14.
After the sale took place, on May 18,
2004, ISG took over production at the
Weirton, West Virginia facility and
Weirton separated the workers
remaining at the West Virginia facility.
SAR 13–14.
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Applicable Authorities
Under Section 222(a) of the Trade Act
of 1974, as amended, a worker group is
adversely-affected by increased imports
if (1) 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
sales and/or production of such firm or
subdivision have decreased absolutely;
and (3) increased imports of articles like
or directly competitive with articles
produced by such firm or subdivision
have contributed importantly to such
workers’ separation or threat of
separation and to the decline in sales or
production of such firm or subdivision.
This is codified in 29 CFR 90.16.
Under section 223(d) of the Trade Act,
the Secretary is authorized to terminate
a certification ‘‘[w]henever the Secretary
determines * * * that total or partial
separations from such firm or
subdivision are no longer attributable to
the conditions specified in section 222.’’
This is codified in 29 CFR 90.17.
Under Section 231 of the Trade Act,
payment of a Trade Readjustment
Allowance (TRA) shall be made to an
adversely affected worker covered by a
certification under conditions including
that the worker’s separation occurred on
or after the beginning date of the
certification and ‘‘before the expiration
of the two-year period beginning on the
date on which the determination * * *
was made’’ or an earlier date if the
Department terminates the certification
prior to the end of that period. This is
codified in 20 CFR 617.11.
The TAA Certification Period
Historically, the Department issued
certifications that did not expire until
two years after the issuance of the
certification; however, if the facts of a
case indicated that worker separations
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would conclude on a date earlier than
two years from the date of the
certification (such as in a plant closure),
the Department would issue a
certification that contained a
termination date that corresponded to
the latest date that, based on the
information provided by the company,
the Department determined that
workers’ separations could be
attributable to the basis for the
certification.
Applying the statutory guidance in
section 223(d) of the Trade Act, where
the facts of a case indicate that the
worker separations will conclude earlier
than the 2-year expiration of the
certification, the Department has
terminated certifications, which
resulted in certifications with a shorter
eligibility period than the ‘‘2-year
expiration date.’’
Section 231 of the Trade Act provides
that payment of a Trade Readjustment
Allowance (TRA), which is the largest
benefit available under the Trade Act,
shall be made to an adversely affected
worker covered by a certification if the
worker’s separation occurred on or after
the beginning date of the certification
and ‘‘before the expiration of the twoyear period beginning on the date on
which the determination * * * was
made’’ or an earlier date if the
Department terminates the certification
prior to the end of that period. Utilizing
the 2-year expiration date in
certifications is consistent with this
section of the Trade Act.
As the TAA program evolved, the
Department addressed the issue of
termination of the certification period in
Unemployment Insurance Program
Letter 28–80 (April 9, 1980). This
guidance to state agencies that
determine individual eligibility for TAA
benefits states that a certification which
is amended to add new groups of
workers, which could have been
included in the original certification,
should not extend the two-year period
of the certification.
Currently, the Department continues
to issue certifications that do not expire
until two years after the date of the
determination and does not monitor
certified worker groups to ascertain
whether the worker separations are
attributable to the basis for certification.
The Department’s Current Policy
Regarding Amendments to the
Expiration Date of Certifications
As stated in all amendment
determinations, the intent of the
Department is for the certification to
cover all workers of the subject firm or
appropriate subdivision who were
adversely affected by increased imports
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of the article produced by the firm or a
shift in production of the article, based
on the investigation of the petition.
Neither the statute nor the regulation
addresses whether the Department may
amend certifications or how to process
requests for amendments, although
section 223(d) of the Trade Act and 29
CFR 90.17 authorize the Department to
terminate certifications if, after an
investigation, the Department believes
that worker separations are ‘‘no longer
attributable to the conditions specified
in section 222 of the Trade Act and 29
CFR 90.16(b).’’ However, in
implementing its authority to certify all
adversely affected workers, the
Department has and continues to amend
the expiration date of certifications
when the facts of the case show that the
later worker separations are attributable
to the basis for certification (the
increased imports or shift of production
to a foreign country).
Because terminating a certification
denies a previously-eligible worker
group’s access to an entitlement
program, the Department believes that
using a standard for amending a
certification to include a previouslyexcluded worker group that is identical
to the approved standard for terminating
a certification adequately safeguards the
interests of the worker group and is in
line with the remedial nature of the
Trade Act. Therefore, requests to
amendment certification to extend the
expiration period are granted in cases
where the Department determines that
the worker separations are
‘‘attributable’’ to the basis for the earlier
certification.
The Department’s policy is reflected
in its determination in Thomson, Inc.,
Circleville, Ohio, TA–W–59,118. SAR
22–23. In Thomson, workers alleged
that they were part of the worker group
certified under TA–W–52,274, issued on
August 7, 2003. Thomson continued to
employ several workers at the subject
facility after August 7, 2005, the
expiration date that certification,
although production had ceased when
the plant closed on June 25, 2004. The
Department explained in the
determination that ‘‘the workers who
continued their employment with the
subject firm to * * * complete
shutdown functions are part of the
worker group covered by TA–W–
52,274.’’ The basis for the determination
was the Department’s finding of ‘‘the
causal nexus between the subject
facility’s closure and the workers’
separations.’’
The amended certification of TA–W–
52,274 (issued January 25 2007) stated
‘‘during the ensuing remand process for
TA–W–59,118, the Department
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determined that there was a causal
nexus between the subject firm’s
shutdown of operations and the
shutdown workers’ separations and that,
therefore, the separations of the workers
* * * are attributable to the conditions
specified in section 222 of the Trade
Act.’’ SAR 22–23.
The Department’s Past Policy
Regarding Amendments to the
Expiration Date of Certification
There has been no change in the
Department’s policy as to situations
such as the one presented in this case.
While the Department anticipated a
change in its policy to extend the
expiration date of a certification beyond
two years, that policy has not changed,
as shown by the Thomson certification.
The Department has not, to the best of
our knowledge, amended a certification
to extend the expiration date except in
limited circumstances when there has
been a plant closing and a small number
of workers are retained past the 2-year
expiration date to complete shutdown
activities. The intent of the Department
in these cases, as in all cases, is for the
amended certification to cover all
adversely affected workers at the subject
firm or appropriate subdivision (based
on the investigation of the petition).
The Department’s Steps To Change
Policy Regarding Certification
Extensions and To Notify the Public of
Policy Changes
The Department has not taken any
steps to notify the public of any change
in policy because there has been no
policy change. The Department had
intended to amend its certification
regulations, as reported in the
Department’s regulatory agenda, but
Congressional action has barred agency
action on such regulations. See Section
110 of Division G of Public Law 110–
161 (Consolidated Appropriations Act,
2008), which states:
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SEC. 110. None of the funds made
available in this or any other Act shall be
available to finalize or implement any
proposed regulation under the Workforce
Investment Act of 1998, Wagner-Peyser Act
of 1933, or the Trade Adjustment Assistance
Reform Act of 2002 until such time as
legislation reauthorizing the Workforce
Investment Act of 1998 and the Trade
Adjustment Assistance Reform Act of 2002 is
enacted.
As a result of this prohibition, the
Department has been unable to notify
the public of any proposal regarding
procedures on group eligibility
terminations, including procedures on
amendments to certifications, and no
regulatory change has taken place. The
Department shall, however, notify the
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public of any regulatory proposal and
seek public comments on the draft
regulations once permissible.
Criteria for Extending Worker Group
Certification Period
Requests for an amendment to extend
the period of a certification are rare.
However, in response to each request for
such an amendment to a certification,
the Department reviews the facts of the
case and determines whether or not it
has been demonstrated that the worker
separations that occurred after the
expiration date of the certification has
expired are also ‘‘attributable’’ to the
basis for that certification. As stated in
Thomson, the Department must
determine that workers separated after
the certification expired are
appropriately part of the worker group
covered by the certification. As such,
the earlier and later separated workers
must have identical characteristics
(same location, same article, and same
basis for certification) aside from dates
of separation. It must also be shown that
the predominant important cause of the
later worker separations is identical to
the conditions that were the basis for
the certification of the earlier separated
workers.
If the certification was based on
increased imports, the petitioning
worker group must show that the
increased imports (same article, same
time periods, etc.) contributed
importantly to their separations; if the
certification was based on a shift of
production, the petitioning worker
group must show that the same shift of
production (same article, same country,
etc.) was the basis for their separations.
The Significance of the Lack of Closure
of the Weirton Plant
When considering whether or not to
grant the request to extend the
certification period of TA–W–39,657,
the Department must determine whether
worker separations after April 23, 2004
are attributable to the increased imports
that were the basis of the certification of
TA–W–39,657. If it is demonstrated that
the contributing cause of the worker
separations at issue is not the increased
imports that were the basis of the
certification, amending the certification
is not appropriate.
Further, should the Department find
that the same conditions that were the
basis for certification in TA–W–39,657
persisted beyond April 23, 2004, and
that worker separations after April 23,
2004 are attributable to the basis for
certification, the Department may
extend the certification period.
However, if there was a change in
circumstance that prevents a causal
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52069
nexus between the workers’ separation
and the basis for certification, then the
Department cannot find that the
workers’ separation is attributable to the
basis for certification.
If a production facility closes, the
workers at that facility would eventually
be separated from that facility, and the
Department would determine that there
was a causal nexus between the
workers’ separations and the plant
closure. The significance of a plant
closure was most recently demonstrated
in Thomson, where the plant closed and
the Department amended the
certification to include the shutdown
workers’ separations. However, because
the Weirton facility did not close, there
is no such causal nexus between the
separations and the events that were the
basis for the certification of TA–W–
39,657.
The investigation of TA–W–54,455
disclosed that the Weirton facility
continued production beyond the
certification date of TA–W–39,657. AR
2, 46, 50, 96, SAR 13–14. Accordingly,
the facility ceased to suffer from the
same economic conditions that were the
basis for the certification, and the later
worker separations are not attributable
to the increased imports that were the
basis for the TA–W–39,657 certification.
In addition, the evidence found in
support of the denial of the certification
request in the instant case showed that
sales of the subject firm increased in the
relevant period, and that there were
declining imports or little or no increase
in imports during the relevant period.
AR 102. This negative determination
was published in the Federal Register
on June 2, 2004 (69 FR 31135). AR 104.
A review of the record amply
demonstrates that extension of the
certification of TA–W–39,657 to cover
the workers would be contrary to the
Department’s policy and practice.
Different Treatment of Separations
After April 23, 2004 Than Separations
That Occurred On or Prior to April 23,
2004
Workers separated after April 23,
2004 are treated differently from those
separated on or prior to April 23, 2004,
because the workers separated before
April 23, 2004 belong to a separately
identifiable worker group.
In the case at hand, the Department
issued a routine certification that
expired two years from the date of
issuance because there was no
information in the record to indicate
that a shorter certification was
appropriate. And, because the
Department did not conduct a
termination investigation, the
certification period was not shortened.
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Therefore, the issue is not whether the
worker separations on or before April
23, 2004 are attributable to the increased
imports that were the basis for
certification; the issue is whether or not
the worker separations after April 23,
2004 are attributable to the increased
imports that were the basis for
certification.
The Department must determine
whether the events that caused the
separations after April 23, 2004 are
identical to those that were the basis for
the certification. While the certification
of workers separated on or before April
23, 2004 was based on increased
imports, SAR 18–19, worker separations
after April 23, 2004 resulted from ISG’s
decision not to continue to employ the
Weirton production workers when it
purchased the operating Weirton plant
as part of the May 18, 2004 sale. SAR
13–14. Accordingly, the Department
determines that workers separated on
May 18, 2004, belong in a worker group
that is separately identifiable from the
worker group covered by the
certification in TA–W–39,657, and that
the Department’s determination denying
amendment of the TA–W–39,657 to
include both worker groups is
appropriate under the circumstances.
Weirton Different From Previous Cases
Where the Department Extended
Worker Certifications
Plaintiffs allege that the action taken
by the Department in the case at hand
is inconsistent with the actions taken in
O/Z–Gedney Co., Division of EGS
Electrical Group, Terrytown,
Connecticut, TA–W–38,569 (O/Z–
Gedney) and Wiegand Appliance
Division, Emerson Electric Company,
Vernon, Alabama, TA–W–39,436
(Wiegand).
In O/Z–Gedney, the certified workers
were engaged in the production of
electrical fittings until the facility
closed. The amended certification stated
that the intent of the Department’s
certification is to include all workers of
the subject firm who were adversely
affected by increased imports. The
Department amended the certification
because there was a causal nexus
between the workers’ separation and the
plant closure that was the result of
increased imports. The single worker
retained at the subject firm beyond the
March 27, 2003 expiration date was
engaged in activities related to the closedown process until her termination on
March 26, 2004. SAR 20.
In Wiegand, the certified workers
were engaged in activities related to the
production of electric heating elements
until the company closed. The amended
certification stated that the intent of the
VerDate Aug<31>2005
17:59 Sep 05, 2008
Jkt 214001
Department’s certification is to include
all workers of the subject firm who were
adversely affected by increased imports.
The Department amended the
certification because there was a causal
nexus between the worker’s separation
and the plant closure that was the result
of increased imports. The workers
separated after the July 16, 2003
expiration date were retained to conduct
activities related to the closure of the
facility. These workers completed the
tracking of outstanding customer orders
until their termination on July 21, 2003.
SAR 21.
In Thomson, the amended
certification issued by the Department
stated that the intent of the certification
is to include all workers of the subject
firm who were adversely affected by
increased imports. The Department
stated that there was a causal nexus
between the worker’s separation and the
plant closure. The few workers
Thomson continued to employ after the
expiration of the certification were
retained by the subject firm pursuant to
State regulation to engage in
decommissioning activities. SAR 24.
As illustrated in the cases discussed
above, the Department’s amendments
were based on findings that increased
imports adversely affected the workers
separated after the expiration of the
certification. The subject firm retained
employees past the certification
expiration date solely to close down the
facility from which the certified workers
had been separated based on increased
imports of the articles produced at that
facility. The Department’s treatment of
such workers has been consistent and
the decision here also is consistent with
that practice. The Weirton workers
separated after the plant’s acquisition by
ISG were not engaged in the closedown
of that facility, but were actually
involved in production and
maintenance of the plant.
The Remand Determination Is in
Accord With the Remedial Nature of
the TAA Statute
In the remand order, the USCIT
directs the Department to explain why
its determination is in accord with the
remedial nature of the Trade Act. The
Department respectfully disagrees with
the premise of the USCIT’s question.
While it is true that the Trade Act is
remedial in nature, the statute does not
authorize the granting of certification,
unlimited by time, in every situation
involving a sympathetic fact pattern.
Certifications have to end at some
time. Our current procedures provide
that certifications generally last for two
years and are, normally, not terminated
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
short of that. A generous application of
the law is not required.
Conclusion
After reconsideration on remand, I
affirm the decision not to amend the
certification of TA–W–39,657 to include
workers separated from Weirton Steel
Corporation, Weirton, West Virginia
after April 23, 2004.
Signed at Washington, DC, this 28th day of
August 2008.
Elliott S. Kushner,
Certifying Officer, Division of Trade
Adjustment Assistance.
[FR Doc. E8–20688 Filed 9–5–08; 8:45 am]
BILLING CODE 4510–FN–P
DEPARTMENT OF LABOR
Employment and Training
Administration
[TA–W–63,197]
Dan River, Inc.; Danville Operations;
Danville, VA; Notice of Revised
Determination on Reconsideration
On July 11, 2008, the Department
issued an Affirmative Determination
Regarding Application on
Reconsideration applicable to workers
and former workers of the subject firm.
The notice was published in the Federal
Register on July 21, 2008 (73 FR 42368).
In the request for reconsideration, the
petitioner provided new information
regarding production at the subject
facility. The petitioner stated that
workers of the subject facility produced
various package labels and packaging
materials.
The Department contacted a company
official to address this allegation. Based
on information provided by the
company official, the Department
determined that workers of the subject
firm were engaged in the production of
package labels and packaging material
in 2007 and January through April 2008.
The investigation also revealed that
the subject firm has shifted production
of package labels and packaging
material to China, Pakistan and India
impacting workers at the Danville plant.
The investigation also revealed that the
firm increased imports of package labels
and packaging material during the
relevant period.
In accordance with Section 246 the
Trade Act of 1974 (26 U.S.C. 2813), as
amended, the Department herein
presents the results of its investigation
regarding certification of eligibility to
apply for Alternative Trade Adjustment
Assistance (ATAA) for older workers.
In order for the Department to issue
a certification of eligibility to apply for
E:\FR\FM\08SEN1.SGM
08SEN1
Agencies
[Federal Register Volume 73, Number 174 (Monday, September 8, 2008)]
[Notices]
[Pages 52066-52070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20688]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Employment and Training Administration
[TA-W-54,455]
Weirton Steel Corporation, Weirton, WV; Negative Determination on
Remand
On April 30, 2008, the U.S. Court of International Trade (USCIT)
remanded United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers International Union,
Local 2911 v. United States Secretary of Labor, Court No. 04-00492, to
the U.S. Department of Labor (Department) for further investigation.
On March 9, 2004, an official of Weirton Steel Corporation (subject
firm) filed a petition for Trade Adjustment Assistance (TAA) and
Alternative Trade Adjustment Assistance (ATAA) on behalf of workers of
Weirton Steel Corporation, Weirton, West Virginia (subject facility).
AR 2. Workers at the subject facility produce hot-rolled, cold-rolled,
tin-plate and hot-dipped, and electrolytic galvanized steel. AR 2, 48.
The workers are not separately identifiable by specific product. AR 48.
On April 23, 2002, workers at Weirton Steel Corporation, Weirton,
West Virginia were certified eligible to apply for TAA (TA-W-39,657;
certification was issued on April 23, 2002 and expired on April 23,
2004). SAR 18.
The initial investigation revealed that the subject firm neither
imported steel products nor shifted steel production to a foreign
country in the one year prior to the petition date (March 9, 2003
through March 9, 2004). AR 102. The initial investigation also revealed
that although subject firm production declined in 2003 from 2002 levels
and declined during January through February 2004 compared with the
corresponding period in 2003, subject firm sales increased in 2003
compared with 2002, and increased in January through February 2004
compared with the corresponding period in 2003. AR 102.
The Department surveyed fifteen of the subject firm's major
declining customers regarding their purchases of the principal product
types of steel sold by the subject firm in 2002, 2003, January through
March 2003, and January through March 2004. The majority of respondents
reported either no imports or declining imports. The survey also
revealed that for those customers that did increase import purchases,
the imports were substantially less than one percent of the subject
firm's sales or production. AR 102.
Aggregate data of the major steel products manufactured by the
subject facility during the relevant period (hot-rolled carbon sheet,
cold-rolled carbon sheet, hot-dipped galvanized sheet and strip,
galvanized electrolytic carbon sheet and strip, and tin mill products)
indicated that imports of these products declined, both absolutely and
relative to shipments, in 2003 compared with 2002, and continued to
decline in the first quarter of 2004 compared with the corresponding
period of 2003. AR 102.
The Department's negative determination regarding the subject
workers' eligibility to apply for worker adjustment assistance was
issued on May 14, 2004. AR 103. The Department's Notice of
determination was published in the Federal Register on June 2, 2004 (69
FR 31135). AR 104.
By letter dated June 18, 2004, the Independent Steelworkers Union
(ISU), via their counsel, requested administrative reconsideration of
the Department's negative determination applicable to the subject
workers. AR 119. The ISU requested that the investigation period be
extended in order to include information regarding subject firm sales
declines and import impact that were the basis for an expired TAA
certification (TA-W-39,657; certified on April 23, 2002). AR 119-194.
The Notice of Negative Determination Regarding Application for
Reconsideration (issued on July 23, 2004) stated that information on
events that occurred before the relevant period cannot be the basis for
TAA certification in the immediate case. AR 195. The Department's
Notice of determination
[[Page 52067]]
was published in the Federal Register on August 4, 2004 (69 FR 47184).
AR 198.
By letter dated September 14, 2004, the Independent Steelworkers
Union (ISU) requested that the expired certification for TA-W-39,657 be
amended to include workers separated from the subject facility after
the end of the original certification period (April 23, 2004). SAR 12.
The request for amendment stated that, on May 18, 2004,
``substantially all of the production assets of Weirton Steel
Corporation were acquired out of bankruptcy by International Steel
Group, Inc. (ISG)'' and ``Weirton ceased to exist as a producer of
steel and several hundred additional employees were permanently
separated from the company.'' SAR 13. The letter asserts that the
intent of the request is to provide TAA eligibility to those workers
who stayed with the subject firm after the expiration of the
certification in order to effectuate the sale of assets, which took
place on May 18, 2004. SAR 12. In support of the request, the ISU cited
two cases in which the Department extended the certification date (O/Z-
Gedney Co., Division of EGS Electrical Group, Terrytown, Connecticut;
TA-W-38,569 and Wiegand Appliance Division, Emerson Electric Company,
Vernon, Alabama; TA-W-39,436). SAR 14.
On September 24, 2004, the Department issued a letter in which the
Plaintiff was notified that its request had been denied. The letter
explained that the Department extends the certification period, before
it expires, in those cases where workers were retained beyond the
certification period in order to assist with the closure of the
facility after production had ceased. The Department's letter stated:
You referred to two trade petition certifications where the
expiration dates were extended, specifically, O/Z Gedney Company,
Division of EGS Electrical Group, Terryville, Connecticut (TA-W-
38,569) and Wiegand Appliance Division, Emerson Electric Company,
Vernon, Alabama (TA-W-39,436). In each of these cases, workers were
retained to assist with the plant closure after production had
ceased. That is not the case for workers at Weirton Steel.
Production of steel products at the Weirton, West Virginia plant
continued during the period relevant to the investigation.
SAR 16-17.
By letter to the USCIT, dated October 1, 2004, the United Steel,
Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial
and Service Workers International Union, Local 2911 (Plaintiff) sought
judicial review of the July 23, 2004 determination denying
reconsideration in this matter.
The complaint stated that the Plaintiff's challenges are ``(1) the
final determination in the investigation regarding certification of
eligibility of former employees of Weirton Steel Corporation, Weirton,
West Virginia, to apply for worker adjustment assistance, Case No. TA-
W-54,455, and (2) the final negative determination in response to a
request for an amendment of the certification in Case No. TA-W-39,657
to extend the expiration date of that certification from April 23, 2004
to May 18, 2004, so as to guarantee eligibility for all former
employees of Weirton Steel who were adversely affected by increased
imports.''
Plaintiff's first claim is that ``the Department's use of a one-
year `representative base period' in this case ignored the reality that
in certain industries, such as steel, there was the possibility or even
the likelihood of a lag time of more than one or two years between
import surges and workers separations.''
Plaintiff's second claim is that the Department has much discretion
as to how it gathers and analyzes information in determining whether
increased imports contributed importantly to worker separations, and
that regulations should not be construed as a ``bar to a more expansive
inquiry where there are compelling reasons for a broader examination.''
Plaintiff's third claim is that the Department is not precluded by
the statute or the regulation from considering ``only imports during
the two years prior to the date of the petition, or during any
particular period of time.''
Plaintiff's fourth claim is that while amendments are absent in
both the statute and the regulation, the Department has not supported
its decision (to not extend the certification period to May 18, 2004)
with substantial evidence and has failed to reconcile the decision with
other cases where requests for amendments to extend the period of
certification were granted.
The Department filed its administrative record with the USCIT
supporting its decision. On November 17, 2006, the USCIT issued its
opinion which sustained the Department's negative determination
applicable to TA-W-54,455. The USCIT also stated that it possessed
jurisdiction to review the Department's decision not to grant the
request to extend the certification of TA-W-39,657 and that it was
reserving judgment pending the Department's submission of additional
documentation related to the amendment request. The court remanded the
case to the Department ``with instructions to assemble and submit to
the court the administrative record regarding plaintiff's amendment
claim.'' Slip. Op. at 31. On January 27, 2007, the Department filed a
supplemental administrative record with the USCIT in accordance with
that order.
In its April 30, 2008 remand order, the Court considered the
Department's decision, in addition to the Department's supplemental
administrative record, which refused to extend the prior determination
and remanded the matter to the Department for it to provide a fuller
explanation of its refusal to extend the certification. The USCIT, in
its order, directed the Department to: (1) Clarify the basis of and to
fully explain any decision it reaches; (2) establish the facts upon
which it makes its determination and state precisely why it is, or is
not, significant that the Weirton plant did not close; (3) clearly
explain why, if at all, the Weirton workers who lost their jobs after
April 23, 2004, should be treated differently than those who lost their
jobs prior to that date; (4) set forth its current and past policy
regarding amendments to the expiration date of certifications; (5)
explain how the case at hand is different, if at all, from previous
cases where it extended worker certifications; (6) set forth all steps,
if any, taken to change its policy with respect to extensions,
including any measures taken to notify the public, and the dates on
which all such steps were undertaken; (7) set forth the criteria upon
which it makes any determination to extend or not to extend the subject
certification; and (8) explain why its determination is in accord with
the remedial nature of the TAA statute.
In order to better explain the Department's determination, the
Department has addressed the USCIT's concerns in a different order than
above and has included facts relevant to TA-W-39,657 as well as the
history of the administration of the Trade program.
Relevant Facts of TA-W-39,657
On April 23, 2002, the Department issued a certification applicable
to workers and former workers of Weirton Steel Corporation, Weirton,
West Virginia (TA-W-39,657) who produced hot and cold rolled coated
carbon steel. The certification was based on the finding that, during
the relative period, sales, production, and employment at the subject
firm decreased while ``U.S. aggregate imports of cold-rolled carbon
steel sheet increased both absolutely and relative to domestic
shipments'' during the relative period. SAR 18-19.
[[Page 52068]]
In May 2003, Weirton filed for bankruptcy. AR 122, SAR 13. During
this bankruptcy proceeding, Weirton agreed to sell to ISG (a
competitor) its assets, including steel production equipment at the
Weirton, West Virginia location. SAR 13. During the transition period
between the bankruptcy filing and the sale of its assets to ISG, over
three hundred workers employed by Weirton, AR 2, 46, 50, 96, continued
to produce steel at the Weirton, West Virginia facility. AR 49-50, SAR
13-14. After the sale took place, on May 18, 2004, ISG took over
production at the Weirton, West Virginia facility and Weirton separated
the workers remaining at the West Virginia facility. SAR 13-14.
Applicable Authorities
Under Section 222(a) of the Trade Act of 1974, as amended, a worker
group is adversely-affected by increased imports if (1) 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 sales and/or production of such firm or subdivision have
decreased absolutely; and (3) increased imports of articles like or
directly competitive with articles produced by such firm or subdivision
have contributed importantly to such workers' separation or threat of
separation and to the decline in sales or production of such firm or
subdivision. This is codified in 29 CFR 90.16.
Under section 223(d) of the Trade Act, the Secretary is authorized
to terminate a certification ``[w]henever the Secretary determines * *
* that total or partial separations from such firm or subdivision are
no longer attributable to the conditions specified in section 222.''
This is codified in 29 CFR 90.17.
Under Section 231 of the Trade Act, payment of a Trade Readjustment
Allowance (TRA) shall be made to an adversely affected worker covered
by a certification under conditions including that the worker's
separation occurred on or after the beginning date of the certification
and ``before the expiration of the two-year period beginning on the
date on which the determination * * * was made'' or an earlier date if
the Department terminates the certification prior to the end of that
period. This is codified in 20 CFR 617.11.
The TAA Certification Period
Historically, the Department issued certifications that did not
expire until two years after the issuance of the certification;
however, if the facts of a case indicated that worker separations would
conclude on a date earlier than two years from the date of the
certification (such as in a plant closure), the Department would issue
a certification that contained a termination date that corresponded to
the latest date that, based on the information provided by the company,
the Department determined that workers' separations could be
attributable to the basis for the certification.
Applying the statutory guidance in section 223(d) of the Trade Act,
where the facts of a case indicate that the worker separations will
conclude earlier than the 2-year expiration of the certification, the
Department has terminated certifications, which resulted in
certifications with a shorter eligibility period than the ``2-year
expiration date.''
Section 231 of the Trade Act provides that payment of a Trade
Readjustment Allowance (TRA), which is the largest benefit available
under the Trade Act, shall be made to an adversely affected worker
covered by a certification if the worker's separation occurred on or
after the beginning date of the certification and ``before the
expiration of the two-year period beginning on the date on which the
determination * * * was made'' or an earlier date if the Department
terminates the certification prior to the end of that period. Utilizing
the 2-year expiration date in certifications is consistent with this
section of the Trade Act.
As the TAA program evolved, the Department addressed the issue of
termination of the certification period in Unemployment Insurance
Program Letter 28-80 (April 9, 1980). This guidance to state agencies
that determine individual eligibility for TAA benefits states that a
certification which is amended to add new groups of workers, which
could have been included in the original certification, should not
extend the two-year period of the certification.
Currently, the Department continues to issue certifications that do
not expire until two years after the date of the determination and does
not monitor certified worker groups to ascertain whether the worker
separations are attributable to the basis for certification.
The Department's Current Policy Regarding Amendments to the Expiration
Date of Certifications
As stated in all amendment determinations, the intent of the
Department is for the certification to cover all workers of the subject
firm or appropriate subdivision who were adversely affected by
increased imports of the article produced by the firm or a shift in
production of the article, based on the investigation of the petition.
Neither the statute nor the regulation addresses whether the
Department may amend certifications or how to process requests for
amendments, although section 223(d) of the Trade Act and 29 CFR 90.17
authorize the Department to terminate certifications if, after an
investigation, the Department believes that worker separations are ``no
longer attributable to the conditions specified in section 222 of the
Trade Act and 29 CFR 90.16(b).'' However, in implementing its authority
to certify all adversely affected workers, the Department has and
continues to amend the expiration date of certifications when the facts
of the case show that the later worker separations are attributable to
the basis for certification (the increased imports or shift of
production to a foreign country).
Because terminating a certification denies a previously-eligible
worker group's access to an entitlement program, the Department
believes that using a standard for amending a certification to include
a previously-excluded worker group that is identical to the approved
standard for terminating a certification adequately safeguards the
interests of the worker group and is in line with the remedial nature
of the Trade Act. Therefore, requests to amendment certification to
extend the expiration period are granted in cases where the Department
determines that the worker separations are ``attributable'' to the
basis for the earlier certification.
The Department's policy is reflected in its determination in
Thomson, Inc., Circleville, Ohio, TA-W-59,118. SAR 22-23. In Thomson,
workers alleged that they were part of the worker group certified under
TA-W-52,274, issued on August 7, 2003. Thomson continued to employ
several workers at the subject facility after August 7, 2005, the
expiration date that certification, although production had ceased when
the plant closed on June 25, 2004. The Department explained in the
determination that ``the workers who continued their employment with
the subject firm to * * * complete shutdown functions are part of the
worker group covered by TA-W-52,274.'' The basis for the determination
was the Department's finding of ``the causal nexus between the subject
facility's closure and the workers' separations.''
The amended certification of TA-W-52,274 (issued January 25 2007)
stated ``during the ensuing remand process for TA-W-59,118, the
Department
[[Page 52069]]
determined that there was a causal nexus between the subject firm's
shutdown of operations and the shutdown workers' separations and that,
therefore, the separations of the workers * * * are attributable to the
conditions specified in section 222 of the Trade Act.'' SAR 22-23.
The Department's Past Policy Regarding Amendments to the Expiration
Date of Certification
There has been no change in the Department's policy as to
situations such as the one presented in this case. While the Department
anticipated a change in its policy to extend the expiration date of a
certification beyond two years, that policy has not changed, as shown
by the Thomson certification. The Department has not, to the best of
our knowledge, amended a certification to extend the expiration date
except in limited circumstances when there has been a plant closing and
a small number of workers are retained past the 2-year expiration date
to complete shutdown activities. The intent of the Department in these
cases, as in all cases, is for the amended certification to cover all
adversely affected workers at the subject firm or appropriate
subdivision (based on the investigation of the petition).
The Department's Steps To Change Policy Regarding Certification
Extensions and To Notify the Public of Policy Changes
The Department has not taken any steps to notify the public of any
change in policy because there has been no policy change. The
Department had intended to amend its certification regulations, as
reported in the Department's regulatory agenda, but Congressional
action has barred agency action on such regulations. See Section 110 of
Division G of Public Law 110-161 (Consolidated Appropriations Act,
2008), which states:
SEC. 110. None of the funds made available in this or any other
Act shall be available to finalize or implement any proposed
regulation under the Workforce Investment Act of 1998, Wagner-Peyser
Act of 1933, or the Trade Adjustment Assistance Reform Act of 2002
until such time as legislation reauthorizing the Workforce
Investment Act of 1998 and the Trade Adjustment Assistance Reform
Act of 2002 is enacted.
As a result of this prohibition, the Department has been unable to
notify the public of any proposal regarding procedures on group
eligibility terminations, including procedures on amendments to
certifications, and no regulatory change has taken place. The
Department shall, however, notify the public of any regulatory proposal
and seek public comments on the draft regulations once permissible.
Criteria for Extending Worker Group Certification Period
Requests for an amendment to extend the period of a certification
are rare. However, in response to each request for such an amendment to
a certification, the Department reviews the facts of the case and
determines whether or not it has been demonstrated that the worker
separations that occurred after the expiration date of the
certification has expired are also ``attributable'' to the basis for
that certification. As stated in Thomson, the Department must determine
that workers separated after the certification expired are
appropriately part of the worker group covered by the certification. As
such, the earlier and later separated workers must have identical
characteristics (same location, same article, and same basis for
certification) aside from dates of separation. It must also be shown
that the predominant important cause of the later worker separations is
identical to the conditions that were the basis for the certification
of the earlier separated workers.
If the certification was based on increased imports, the
petitioning worker group must show that the increased imports (same
article, same time periods, etc.) contributed importantly to their
separations; if the certification was based on a shift of production,
the petitioning worker group must show that the same shift of
production (same article, same country, etc.) was the basis for their
separations.
The Significance of the Lack of Closure of the Weirton Plant
When considering whether or not to grant the request to extend the
certification period of TA-W-39,657, the Department must determine
whether worker separations after April 23, 2004 are attributable to the
increased imports that were the basis of the certification of TA-W-
39,657. If it is demonstrated that the contributing cause of the worker
separations at issue is not the increased imports that were the basis
of the certification, amending the certification is not appropriate.
Further, should the Department find that the same conditions that
were the basis for certification in TA-W-39,657 persisted beyond April
23, 2004, and that worker separations after April 23, 2004 are
attributable to the basis for certification, the Department may extend
the certification period. However, if there was a change in
circumstance that prevents a causal nexus between the workers'
separation and the basis for certification, then the Department cannot
find that the workers' separation is attributable to the basis for
certification.
If a production facility closes, the workers at that facility would
eventually be separated from that facility, and the Department would
determine that there was a causal nexus between the workers'
separations and the plant closure. The significance of a plant closure
was most recently demonstrated in Thomson, where the plant closed and
the Department amended the certification to include the shutdown
workers' separations. However, because the Weirton facility did not
close, there is no such causal nexus between the separations and the
events that were the basis for the certification of TA-W-39,657.
The investigation of TA-W-54,455 disclosed that the Weirton
facility continued production beyond the certification date of TA-W-
39,657. AR 2, 46, 50, 96, SAR 13-14. Accordingly, the facility ceased
to suffer from the same economic conditions that were the basis for the
certification, and the later worker separations are not attributable to
the increased imports that were the basis for the TA-W-39,657
certification. In addition, the evidence found in support of the denial
of the certification request in the instant case showed that sales of
the subject firm increased in the relevant period, and that there were
declining imports or little or no increase in imports during the
relevant period. AR 102. This negative determination was published in
the Federal Register on June 2, 2004 (69 FR 31135). AR 104. A review of
the record amply demonstrates that extension of the certification of
TA-W-39,657 to cover the workers would be contrary to the Department's
policy and practice.
Different Treatment of Separations After April 23, 2004 Than
Separations That Occurred On or Prior to April 23, 2004
Workers separated after April 23, 2004 are treated differently from
those separated on or prior to April 23, 2004, because the workers
separated before April 23, 2004 belong to a separately identifiable
worker group.
In the case at hand, the Department issued a routine certification
that expired two years from the date of issuance because there was no
information in the record to indicate that a shorter certification was
appropriate. And, because the Department did not conduct a termination
investigation, the certification period was not shortened.
[[Page 52070]]
Therefore, the issue is not whether the worker separations on or before
April 23, 2004 are attributable to the increased imports that were the
basis for certification; the issue is whether or not the worker
separations after April 23, 2004 are attributable to the increased
imports that were the basis for certification.
The Department must determine whether the events that caused the
separations after April 23, 2004 are identical to those that were the
basis for the certification. While the certification of workers
separated on or before April 23, 2004 was based on increased imports,
SAR 18-19, worker separations after April 23, 2004 resulted from ISG's
decision not to continue to employ the Weirton production workers when
it purchased the operating Weirton plant as part of the May 18, 2004
sale. SAR 13-14. Accordingly, the Department determines that workers
separated on May 18, 2004, belong in a worker group that is separately
identifiable from the worker group covered by the certification in TA-
W-39,657, and that the Department's determination denying amendment of
the TA-W-39,657 to include both worker groups is appropriate under the
circumstances.
Weirton Different From Previous Cases Where the Department Extended
Worker Certifications
Plaintiffs allege that the action taken by the Department in the
case at hand is inconsistent with the actions taken in O/Z-Gedney Co.,
Division of EGS Electrical Group, Terrytown, Connecticut, TA-W-38,569
(O/Z-Gedney) and Wiegand Appliance Division, Emerson Electric Company,
Vernon, Alabama, TA-W-39,436 (Wiegand).
In O/Z-Gedney, the certified workers were engaged in the production
of electrical fittings until the facility closed. The amended
certification stated that the intent of the Department's certification
is to include all workers of the subject firm who were adversely
affected by increased imports. The Department amended the certification
because there was a causal nexus between the workers' separation and
the plant closure that was the result of increased imports. The single
worker retained at the subject firm beyond the March 27, 2003
expiration date was engaged in activities related to the close-down
process until her termination on March 26, 2004. SAR 20.
In Wiegand, the certified workers were engaged in activities
related to the production of electric heating elements until the
company closed. The amended certification stated that the intent of the
Department's certification is to include all workers of the subject
firm who were adversely affected by increased imports. The Department
amended the certification because there was a causal nexus between the
worker's separation and the plant closure that was the result of
increased imports. The workers separated after the July 16, 2003
expiration date were retained to conduct activities related to the
closure of the facility. These workers completed the tracking of
outstanding customer orders until their termination on July 21, 2003.
SAR 21.
In Thomson, the amended certification issued by the Department
stated that the intent of the certification is to include all workers
of the subject firm who were adversely affected by increased imports.
The Department stated that there was a causal nexus between the
worker's separation and the plant closure. The few workers Thomson
continued to employ after the expiration of the certification were
retained by the subject firm pursuant to State regulation to engage in
decommissioning activities. SAR 24.
As illustrated in the cases discussed above, the Department's
amendments were based on findings that increased imports adversely
affected the workers separated after the expiration of the
certification. The subject firm retained employees past the
certification expiration date solely to close down the facility from
which the certified workers had been separated based on increased
imports of the articles produced at that facility. The Department's
treatment of such workers has been consistent and the decision here
also is consistent with that practice. The Weirton workers separated
after the plant's acquisition by ISG were not engaged in the closedown
of that facility, but were actually involved in production and
maintenance of the plant.
The Remand Determination Is in Accord With the Remedial Nature of the
TAA Statute
In the remand order, the USCIT directs the Department to explain
why its determination is in accord with the remedial nature of the
Trade Act. The Department respectfully disagrees with the premise of
the USCIT's question. While it is true that the Trade Act is remedial
in nature, the statute does not authorize the granting of
certification, unlimited by time, in every situation involving a
sympathetic fact pattern.
Certifications have to end at some time. Our current procedures
provide that certifications generally last for two years and are,
normally, not terminated short of that. A generous application of the
law is not required.
Conclusion
After reconsideration on remand, I affirm the decision not to amend
the certification of TA-W-39,657 to include workers separated from
Weirton Steel Corporation, Weirton, West Virginia after April 23, 2004.
Signed at Washington, DC, this 28th day of August 2008.
Elliott S. Kushner,
Certifying Officer, Division of Trade Adjustment Assistance.
[FR Doc. E8-20688 Filed 9-5-08; 8:45 am]
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