DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-51,525

WEST BRANCH INDUSTRIES
WEST BRANCH, MICHIGAN

TA-W-51,525A

TAWAS TOOL COMPANY
EAST TAWAS, MICHIGAN

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (19 USC 2273), the Department of Labor herein presents
the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance. The group
eligibility requirements for directly-impacted (primary) workers
under Section 222(a) the Trade Act of 1974, as amended, can be
satisfied in either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. 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;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. 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; or


II. Section (a)(2)(B) both of the following must be satisfied:

A. 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;
B. 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

C. One of the following must be satisfied:
1. 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;
2. 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
3. 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.

The investigation was initiated on April 17, 2003,, in
response to a petition filed on behalf of workers at West Branch
Industries, West Branch, Michigan, and Tawas Tool Company, East
Tawas, Michigan, subsidiaries of Star Cutter Company, Farmington
Hills, Michigan. The workers produce cutting tools and parts.
The investigation revealed that criteria I.C and II.B are
not met.
The subject facilities did not import significant amounts
of cutting tools or parts, nor has it shifted production of
those articles to an offshore location.
The Department of Labor conducted a survey of the subject
firm's major declining customers regarding their purchases of
cutting tools and parts during 2001, 2002, and January through
April 2003 over the corresponding 2002 period. The survey
revealed that major customers did not increase their purchases
of imported cutting tools and parts, while decreasing their
purchases from the subject firm during the relevant time period.
Aggregate United States imports of gear cutting machines
declined from 2000 through 2002 in both absolute terms and also
as a ratio of domestic production.
The predominant cause of these layoffs appears to have been
a domestic consolidation of manufacturing activities of the
subject firm.
Conclusion
After careful review, I determine that all workers of West
Branch Industries, West Branch, Michigan, and Tawas Tool
Company, East Tawas, Michigan, are denied eligibility to apply
for adjustment assistance under Section 223 of the Trade Act of
1974.
Signed in Washington, D.C. this 12th day of June 2003.

/s/ Elliott S. Kushner

______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance