Petitioner Type: Union
Impact Date:
Filed Date: 12/18/2003
Most Recent Update: 02/05/2004
Determination Date: 02/05/2004
Expiration Date:
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-53,834
SNAP-ON TOOLS, INC.
MT. CARMEL PLANT
MT. CARMEL, ILLINOIS
Notice of Negative Determination
Regarding Application for Reconsideration
By application of March 5, 2004, International Association
of Machinists, District Lodge 111 requested administrative
reconsideration of the Department's negative determination
regarding eligibility for workers and former workers of the
subject firm to apply for Trade Adjustment Assistance (TAA). The
denial notice was published in the Federal Register on March 12,
2004 (69 FR 11888).
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 TAA petition, filed on behalf of workers at Snap-on
Tools, Inc., Mt. Carmel Plant, Mt. Carmel, Illinois engaged in
the production of hand tools, was denied because criteria I.C and
II.B and the "contributed importantly" group eligibility
requirement of Section 222 of the Trade Act of 1974, as amended,
were not met. The “contributed importantly” test is generally
demonstrated through a survey of the workers’ firm’s customers.
The survey revealed an insignificant level of imports. The
subject firm imported a negligible amount of hand tools during
the relevant period.
The petitioner alleges that the company is currently in the
process of purchasing a facility in China for the purpose of
shifting some of the production from the subject facility.
A company official was contacted in regard to these
allegations. The official stated that there never was a shift of
hand tool production from the Mt. Carmel, Illinois facility
abroad and no plans exist to move any production from the subject
facility to China.
The petitioner further alleges that Snap-on Tools, Inc. is
considering to discontinue the E-Line Plier line and replacing it
with foreign made products, manufactured in Sweden or Germany and
mentions Blue Point product, which was affected by the foreign
trade.
The official confirmed that there are plans to produce E-
line pliers at a subsidiary located in Sweden. However, no shift
of production to Sweden has occurred yet. The official further
stated that the company does import power tools which are branded
as Blue Point, however, they are not like or directly competitive
with products manufactured at Mt. Carmel Plant. The company has
been outsourcing manufacturing of the adjustable wrenches and
pliers from overseas vendors for many years, however, this
sourcing, including Blue Point tools represents less than 2
percent of the overall volume of the Mt. Carmel Plant and did not
increase during the relevant time period.
Finally, the petitioner alleges that the subject firm lost a
considerable amount of business to its competitor, a company
which is “more price-competitive due to the use of overseas
trade.”
A review of competitors is not relevant to an investigation
concerning import impact on workers applying for trade adjustment
assistance. As noted above, “contributed importantly” test is
generally demonstrated through a survey of customers of the
workers’ firm to examine the direct impact on a specific firm.
Only an insignificant amount of imports of hand tools were
evidenced during the survey of subject firm’s customers during
the original investigation.
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 decisions. Accordingly, the
application is denied.
Signed at Washington, D.C., this 30th day April 2004.
Elliott S. Kushner
_______________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-53,834
SNAP-ON TOOLS, INC.
MT. CARMEL PLANT
MT. CARMEL, ILLINOIS
Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance and
Alternative Trade 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
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 December 18, 2003 in
response to a petition filed by the International Association of
Machinists and Aerospace Workers, District 111, on behalf of
workers at Snap-On Tools, Inc., Mt. Carmel Plant, Mt. Carmel,
Illinois. The workers produce hand tools.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) were not met.
The investigation revealed that the subject firm has imported
some hand tools for years but the level of imports is negligible
and does not represent a recent change. The subject firm did not
shift production of hand tools from the Mt. Carmel plant abroad
during the relevant period.
The Department of Labor surveyed the subject firm’s major
customers regarding their purchases of imported hand tools during
2002 and 2003. The survey revealed an insignificant level of
imports.
In addition, in accordance with Section 246 the Trade Act of
1974 (26 USC 2813), as amended, the Department of Labor 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 ATAA, the worker group must be certified
eligible to apply for trade adjustment assistance (TAA). Since the
workers are denied eligibility to apply for TAA, the workers cannot
be certified eligible for ATAA.
Conclusion
After careful review, I determine that all workers of Snap-On
Tools, Inc., Mt. Carmel facility, Mt. Carmel, Illinois are denied
eligibility to apply for adjustment assistance under Section 223 of
the Trade Act of 1974, and are also denied eligibility to apply for
alternative trade adjustment assistance under Section 246 of the
Trade Act of 1974.
Signed in Washington, D.C. this 5th day of February 2004.
/s/ Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance
Employment and Training Administration
TA-W-53,834
SNAP-ON TOOLS, INC.
MT. CARMEL PLANT
MT. CARMEL, ILLINOIS
Notice of Negative Determination
Regarding Application for Reconsideration
By application of March 5, 2004, International Association
of Machinists, District Lodge 111 requested administrative
reconsideration of the Department's negative determination
regarding eligibility for workers and former workers of the
subject firm to apply for Trade Adjustment Assistance (TAA). The
denial notice was published in the Federal Register on March 12,
2004 (69 FR 11888).
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 TAA petition, filed on behalf of workers at Snap-on
Tools, Inc., Mt. Carmel Plant, Mt. Carmel, Illinois engaged in
the production of hand tools, was denied because criteria I.C and
II.B and the "contributed importantly" group eligibility
requirement of Section 222 of the Trade Act of 1974, as amended,
were not met. The “contributed importantly” test is generally
demonstrated through a survey of the workers’ firm’s customers.
The survey revealed an insignificant level of imports. The
subject firm imported a negligible amount of hand tools during
the relevant period.
The petitioner alleges that the company is currently in the
process of purchasing a facility in China for the purpose of
shifting some of the production from the subject facility.
A company official was contacted in regard to these
allegations. The official stated that there never was a shift of
hand tool production from the Mt. Carmel, Illinois facility
abroad and no plans exist to move any production from the subject
facility to China.
The petitioner further alleges that Snap-on Tools, Inc. is
considering to discontinue the E-Line Plier line and replacing it
with foreign made products, manufactured in Sweden or Germany and
mentions Blue Point product, which was affected by the foreign
trade.
The official confirmed that there are plans to produce E-
line pliers at a subsidiary located in Sweden. However, no shift
of production to Sweden has occurred yet. The official further
stated that the company does import power tools which are branded
as Blue Point, however, they are not like or directly competitive
with products manufactured at Mt. Carmel Plant. The company has
been outsourcing manufacturing of the adjustable wrenches and
pliers from overseas vendors for many years, however, this
sourcing, including Blue Point tools represents less than 2
percent of the overall volume of the Mt. Carmel Plant and did not
increase during the relevant time period.
Finally, the petitioner alleges that the subject firm lost a
considerable amount of business to its competitor, a company
which is “more price-competitive due to the use of overseas
trade.”
A review of competitors is not relevant to an investigation
concerning import impact on workers applying for trade adjustment
assistance. As noted above, “contributed importantly” test is
generally demonstrated through a survey of customers of the
workers’ firm to examine the direct impact on a specific firm.
Only an insignificant amount of imports of hand tools were
evidenced during the survey of subject firm’s customers during
the original investigation.
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 decisions. Accordingly, the
application is denied.
Signed at Washington, D.C., this 30th day April 2004.
Elliott S. Kushner
_______________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-53,834
SNAP-ON TOOLS, INC.
MT. CARMEL PLANT
MT. CARMEL, ILLINOIS
Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance and
Alternative Trade 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
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 December 18, 2003 in
response to a petition filed by the International Association of
Machinists and Aerospace Workers, District 111, on behalf of
workers at Snap-On Tools, Inc., Mt. Carmel Plant, Mt. Carmel,
Illinois. The workers produce hand tools.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) were not met.
The investigation revealed that the subject firm has imported
some hand tools for years but the level of imports is negligible
and does not represent a recent change. The subject firm did not
shift production of hand tools from the Mt. Carmel plant abroad
during the relevant period.
The Department of Labor surveyed the subject firm’s major
customers regarding their purchases of imported hand tools during
2002 and 2003. The survey revealed an insignificant level of
imports.
In addition, in accordance with Section 246 the Trade Act of
1974 (26 USC 2813), as amended, the Department of Labor 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 ATAA, the worker group must be certified
eligible to apply for trade adjustment assistance (TAA). Since the
workers are denied eligibility to apply for TAA, the workers cannot
be certified eligible for ATAA.
Conclusion
After careful review, I determine that all workers of Snap-On
Tools, Inc., Mt. Carmel facility, Mt. Carmel, Illinois are denied
eligibility to apply for adjustment assistance under Section 223 of
the Trade Act of 1974, and are also denied eligibility to apply for
alternative trade adjustment assistance under Section 246 of the
Trade Act of 1974.
Signed in Washington, D.C. this 5th day of February 2004.
/s/ Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance