DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-56,318

AUTOMATIC LATHE CUTTERHEAD
HIGH POINT, NORTH CAROLINA

TA-W-56,318A

INDUSTRIAL SUPPLY CO., INC.
SUBSIDIARY OF AUTOMATIC LATHE CUTTERHEAD
HICKORY, NORTH CAROLINA

Notice of Negative Determination
Regarding Application for Reconsideration

By application of March 11, 2005 a petitioner 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) and Alternative Trade Adjustment Assistance
(ATAA). The denial notice was signed on February 18, 2005 and
published in the Federal Register on March 9, 2005 (70 FR 11703).
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 Automatic
Lathe Cutterhead, High Point, North Carolina (TA-W-56,318)
engaged in cutting bandsaw blades and Industrial Supply CO.,
Inc., Subsidiary of Automatic Lathe Cutterhead, Hickory, North
Carolina (TA-W-56,318A) engaged in direct support of the
production at Automatic Lathe Cutterhead was denied because the
"contributed importantly" group eligibility requirement of
Section 222 of the Trade Act of 1974 was not met. The
“contributed importantly” test is generally demonstrated through
a survey of the workers’ firm’s customers. The survey revealed
no increase in imports of bandsaw blades during the relevant
period. The subject firm did not import bandsaw blades in the
relevant period nor did it shift production to a foreign country.
In the request for reconsideration, the petitioner inquires
about the reasoning behind workers of the subject firms being
tied to the production of bandsaw blades and refers to the
furniture industry as a more appropriate activity for the workers
of the subject firm.
The original investigation did reveal that both locations,
Automotive Lathe Cutterhead in High Point, North Carolina and
Industrial Supply Company in Hickory, North Carolina act as
resale distributors and workers of these facilities are strictly
engaged in warehousing for suppliers that manufacture furniture.
However, warehousing is not considered production of an article
within the meaning of Section 222 of the Trade Act. Therefore,
the subject group of workers can not be eligible for TAA on its
own, based on the fact, that workers do not produce an article.
However, it was also determined that cutting and welding of
bandsaw blades takes place at the Automatic Lathe Cutterhead
Company, High Point, North Carolina facility. Because it is the
only production activity occurring at the subject firm, the
investigation was conducted on bandsaw blades as a relevant
product manufactured by the workers of the subject firm.
The petitioner alleges that the subject firm lost its
business due to the conditions in the furniture industry and its
major customers importing furniture and shifting their production
abroad.
In order to establish import impact, the Department must
consider imports that are like or directly competitive with those
produced at the subject firm. The Department conducted a survey
of the subject firm’s major declining customers regarding their
purchases of bandsaw blades. The survey revealed that the
declining customers did not import bandsaw blades during the
relevant period.
The reconsideration revealed that the original petitions for
Automatic Lathe Cutterhead, High Point, North Carolina and
Industrial Supply Co., Inc., Hickory, North Carolina were filed
as secondary affected firms. Because this fact was not addressed
during the original investigation, an investigation was conducted
to determine whether workers of the subject firms are eligible
for trade adjustment assistance (TAA) based on the secondary
upstream supplier impact.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance on
the basis of the workers’ firm being a secondary upstream supplier,
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.

In this case, however, the subject firms do not act as
upstream suppliers, because bandsaw blades do not form a
component part of the furniture. Thus the subject firm workers
are not eligible under secondary impact.


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 decision. Accordingly, the
application is denied.

Signed at Washington, D.C. this 19th day of April, 2005

/s/ Elliott S. Kushner


ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance