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TAW-55518  /  BASF Corp. (Freeport, TX)

Petitioner Type: State
Impact Date: 08/30/2003
Filed Date: 08/31/2004
Most Recent Update: 10/04/2004
Determination Date: 10/04/2004
Expiration Date:

Corrected Copy
February 18, 2005

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-55,518

BASF CORPORATION
FREEPORT, TEXAS

Notice of Revised Determination
on Reconsideration

On January 12, 2005, the Department of Labor issued a Notice
of Affirmative Determination Regarding Application for
Reconsideration applicable to the subject firm. The Notice will
soon be published in the Federal Register.
The initial investigation found that workers are separately
identifiable by product line (polycaprolactum, oxo, diols, and
acrylic monomers), that polycaprolactum, oxo and diol production
increased during the relevant period, and that the subject
company neither increased imports of acrylic monomers during the
relevant period nor shifted acrylic monomer production abroad.
The petitioner asserted in the request for reconsideration
that the worker separations at the subject firm were the result
of a shift of production of acrylic monomers to China.
During the reconsideration investigation, it was found that
workers are not separately identifiable by product line, subject
facility production ceased in December 2003, production shifted
to an affiliated facility located in Europe, and the subject firm
increased their reliance on imports during the relevant period.
The investigation also revealed that the criteria for
alternative trade adjustment assistance have been met. A
significant number or proportion of the worker group are age
fifty years or over and workers possess skills that are not
easily transferable. Competitive conditions within the industry
are adverse.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I conclude that increased imports of articles
like or directly competitive with those produced at BASF
Corporation, Freeport, Texas contributed importantly to worker
separations at the subject firm.
In accordance with the provisions of the Act, I make the
following certification:
"All workers of BASF Corporation, Freeport, Texas, who
became totally or partially separated from employment on or
after August 30, 2003, through two years from the date of
this certification, are eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, and
are also eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974.”
Signed in Washington, D.C. this 21st day of January 2005.


/s/ Elliott S. Kushner
_______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-55,518

BASF CORPORATION
FREEPORT, TEXAS

Notice of 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,
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 August 31, 2004 in response
to a petition filed by a state agency representative on behalf of
workers at BASF Corporation, Freeport, Texas. The workers at the
subject facility are engaged in employment related to the
production of chemicals (polycaprolactum, oxo, diols, and acrylic
monomers). Production workers are separately identifiable by
product.
With respect to workers who produce polycaprolactum, oxo and

diols, it is determined that the requirements of criteria (a) (2)

(A) (I.B) and (a)(2)(B)(II.B) were not met.

The investigation revealed that sales and production of these
products increased from January through August of 2004 in
comparison to the same time period in 2003.
With respect to workers who produce acrylic monomers, the
investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.C) were not met.
The investigation determined that the subject firm did not
import or shift the production abroad of acrylic monomers during
the relevant time periods.
Additionally, the subject firm reported no declines in third
party sales of acrylic monomers. This product is primarily sold
within the subject firm where it is used as a component of other
products manufactured by the firm.
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 of BASF Corporation, Freeport, Texas cannot be certified to
apply for TAA, these workers cannot be certified eligible to apply
for ATAA.


Conclusion
After careful review, I determine that workers of BASF
Corporation, Freeport, Texas 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 4th day of October 2004.
/s/ Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance