Petitioner Type: Workers
Impact Date:
Filed Date: 05/20/2003
Most Recent Update: 06/30/2003
Determination Date: 06/30/2003
Expiration Date:
Employment and Training Administration
TA-W-51,823
OEM WORLDWIDE LLC
SPEARFISH, SOUTH DAKOTA
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.
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 May 20, 2003, in response
to a petition filed on behalf of workers of OEM Worldwide LLC,
Spearfish, South Dakota. The subject firm is a subsidiary of
Everett Smith Group. The workers produced circuit board assemblies.
The investigation revealed that criteria I.C. and II.B. have
not been met.
The subject firm was acquired by Everett Smith Group in
September 2002.
The Department conducted a survey of major declining customers
of the subject firm regarding their purchases of circuit board
assemblies in September 2002 through February 2003. The survey
revealed that none of the respondents imported in the relevant
period.
There has been no 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.
Petitioners also filed as adversely affected secondary workers
as suppliers 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 revealed that criterion (2) has not been
met.
Petitioners allege 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.
Workers of K R Gear, Eden Prairie, Minnesota to whom the
subject firm supplied circuit board assemblies were not certified
as eligible to apply for adjustment assistance.
Conclusion
After careful review, I determine that all workers of OEM
Worldwide LLC, Spearfish, South Dakota are denied eligibility to
apply for adjustment assistance under Section 223 of the Trade Act
of 1974.
Signed in Washington, D.C. this 30th day of June 2003
/s/Elliott S. Kushner
______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance