[Federal Register: April 7, 2003 (Volume 68, Number 66)]
[Notices]
[Page 16844]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ap03-111]
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DEPARTMENT OF LABOR
Employment and Training Administration
[TA-W-41,889]
United Container Machinery, Glen Arm, MD; Notice of Negative
Determination Regarding Application for Reconsideration
By application January 1, 2003, a petitioner requested
administrative reconsideration of the Department's negative
determination regarding eligibility to apply for Trade Adjustment
Assistance (TAA), applicable to workers and former workers of the
subject firm. The denial notice was signed on November 29, 2002, and
published in the Federal Register on December 23, 2002 (67 FR 78257).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted under
the following circumstances:
(1) If it appears on the basis of facts not previously considered
that the determination complained of was erroneous;
(2) If it appears that the determination complained of was based on
a mistake in the determination of facts not previously considered; or
(3) If in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified reconsideration of the
decision.
The petition for the workers of United Container Machinery, Glen
Arm, Maryland was denied because the ``contributed importantly'' group
eligibility requirement of section 222(3) of the Trade Act of 1974, as
amended, was not met. The ``contributed importantly'' test is generally
demonstrated through a survey of customers of the workers' firm. The
survey revealed that none of the respondents increased their purchases
of imported machinery for corrugated boxes.
The petitioner states that the subject firm workers were previously
certified for trade adjustment assistance in 1998, and thus appears to
allege that they should be considered eligible currently.
The Department considers import impact in terms of the relevant
period of the current investigation; therefore import impact as
established in a previous investigation that is outside the relevant
period is irrelevant.
The petitioner also states that the company did not file a new
petition on behalf of subject firm workers when the previous
certification expired.
This fact has no bearing on eligibility of subject firm workers for
trade adjustment assistance.
The petitioner asserts that an affiliate of the subject firm
imports competitive products from Hungary.
In response to this allegation, a company official clarified that
United Container Machinery did merge with another company in the late
summer of 2002, and that the merger did include the acquisition of a
Hungarian facility. He also verified that the foreign firm has imported
a small percentage of their production to the United States for some
time; however, imports of products produced from this facility have not
increased since the merger, and so have not contributed to layoffs at
the subject firm.
The petitioner asserts that a foreign competitor sells competitive
products to at least two customers of the subject firm.
When contacted about this allegation, the company official stated
that the two companies mentioned comprised a very small percentage of
the subject firm's sales declines. In fact, according to the company
official, the layoffs were not brought about by sales and production
declines, but rather by a shift in production to two affiliated
domestic facilities.
The petitioner also stated that United Container Machinery acted as
a selling agent of competitive machinery and that this role ``in the
long run affected some of our prospective sales.''
The company official that commented on this stated that the subject
firm had taken part in a partnership with several foreign firms to sell
competitive corrugated box machinery, receiving a commission for their
services. However, the imports resulting from the partnership between
the subject firm and the foreign firms constituted a very small amount
relative to production at the Glen Arm facility. The company official
further clarified that imports declined for the twelve months ending
August of 2002, when the partnership ceased.
Conclusion
After review of the application and investigative findings, I
conclude that there has been no error or misinterpretation of the law
or of the facts which would justify reconsideration of the Department
of Labor's prior decision. Accordingly, the application is denied.
Signed in Washington, DC this 25th day of March 2003.
Edward A. Tomchick,
Director, Division of Trade Adjustment Assistance.
[FR Doc. 03-8349 Filed 4-4-03; 8:45 am]
BILLING CODE 4510-30-P