DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-53,864

LU-MAC, INC.
FORD CITY, PENNSYLVANIA

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 (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 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 December 23, 2003, in
response to a petition filed by a company official on behalf of
workers of Lu-Mac, Inc., Ford City, Pennsylvania. The workers
produce steel mill equipment.
The investigation revealed that criteria (3)(A) 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 the subject firm did not supply steel mill
equipment to a manufacturer whose workers are certified eligible
to apply for trade adjustment assistance.
Furthermore, the investigation revealed that the subject firm
did not import steel mill equipment during 2002 or 2003.
The investigation revealed that the subject firm did not
shift production of steel mill equipment abroad during the
relevant period.
The Department of Labor also surveyed the subject firm's
major declining customers in regards to their purchases of steel
mill equipment. This survey revealed negligible imports during
the relevant period.
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 assis-
tance (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 of the facts obtained in this
investigation, I determine workers of Lu-Mac, Inc., Ford City,
Pennsylvania, are denied eligibility to apply for adjustment
assistance under section 223(b) of the Trade Act of 1974, and
alternative trade adjustment assistance under Section 246 of the
Trade Act of 1974.

Signed at Washington, D.C., this 30th day of January 2004

/s/ Linda G. Poole

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