DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-51,638

KEYSTONE POWDERED METAL COMPANY
ST. MARYS, PENNSYLVANIA

Negative Determination Regarding Eligibility to Apply for
Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974 (19 USC
2273), as amended, the Department of Labor herein presents the
results of an investigation regarding certification of eligibility
to apply for worker adjustment assistance as an adversely affected
secondary group.
An investigation was conducted in order to determine whether
the petitioning group of workers qualify as adversely affected
secondary workers as suppliers of component parts to a firm or
subdivision primarily affected by increased imports or a shift of
production abroad.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance,
the following group eligibility requirements under Section 222(b)
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 (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) that
employed a group of workers who received a certification
of eligibility to apply for trade adjustment assistance
benefits 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 for the firm (or subdivision) 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
(or subdivision) described in paragraph (2) contributed
importantly to the workers' separation or threat of
separation.

The investigation was initiated on April 30, 2003 in response
to a petition filed by the International Union of Electronic,
Electrical, Salaried Machine and Furniture Workers, Local 502 on
behalf of workers of Keystone Powdered Metal Company, St. Marys,
Pennsylvania. The workers produce bearings for small engines and
appliances, and automotive parts.
The investigation revealed that criterion (2) has not been
met.
The petitioner alleges that job losses were due to their
firm losing business as a supplier to a firm that shifted
production abroad or was affected by increased imports. The
investigation revealed, however, that was not the case. The
investigation revealed that none of the customers' worker groups
identified by the petitioner were certified eligible to apply for
trade adjustment assistance.
Furthermore, sales of bearings at Keystone Powdered Metal
Company, St. Marys, Pennsylvania, increased from 2001 to 2002,
and increased again from the first quarter to 2002 to the first
quarter of 2003.




Conclusion
After careful review, I determine that all workers covered
by this petition of Keystone Powdered Metal Company, St. Marys,
Pennsylvania do not qualify as adversely affected secondary
workers and are denied eligibility to apply for adjustment
assistance under section 223(b) of the Trade Act of 1974.
Signed at Washington, D.C., this 9th day of June, 2003.

/s/ Linda G. Poole

__
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance