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TAW-56674  /  CTS Corporation (Albuquerque, NM)

Petitioner Type: Workers
Impact Date: 02/28/2004
Filed Date: 03/03/2005
Most Recent Update: 04/15/2005
Determination Date: 04/15/2005
Expiration Date: 03/22/2008

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-56,674

CTS CORPORATION
CTS COMMUNICATIONS COMPONENTS, INC.
INCLUDING ON-SITE LEASED WORKERS OF EXCEL AND SPHERION
ALBUQUERQUE, NEW MEXICO


Notice of Revised Determination
On Remand
In an Order issued on February 7, 2006, the United States
Court of International Trade (USCIT) granted the motion filed by
the Department of Labor (Department) for voluntary remand in
Former Employees of CTS Communication Components, Inc. v. United
States Secretary of Labor, Court No. 05-00372.
On April 15, 2005, the Department issued a negative
determination regarding workers eligibility to apply for Trade
Adjustment Assistance (TAA) and Alternative Trade Adjustment
Assistance (ATAA) for workers and former workers of CTS
Corporation, CTS Communications Components, Inc., Including On-
Site Leased Workers of Excel and Spherion, Albuquerque, New
Mexico, (CTS). Workers produce ceramic blocks/filters and
sensors and are not separately identifiable by product line.
The Department’s Notice of determination was published in the
Federal Register on May 16, 2005 (70 FR 25859).
The determination was based on the findings that the
subject company neither imported ceramic blocks/filters or
sensors in 2003, 2004, or during the period of January through
February 2005, nor shifted production of ceramic blocks/filters
or sensors abroad during the relevant period, and that the
subject company’s major declining customers did not increase
imports of ceramic blocks/filters or sensors during the relevant
period.
On June 7, 2005, the Department dismissed a request for
administrative reconsideration based upon a lack of substantial
new information. In the request for reconsideration, the
petitioner alleged that production shifted to China and that the
customer are unknowingly importing ceramic blocks/filters and/or
sensors from China. The dismissal stated that while production
did shift to China, as alleged, neither the subject company nor
its customers had increased imports of ceramic blocks/filters or
sensors. The Department’s Notice of Dismissal of Application
for Reconsideration was issued on June 8, 2005 and published in
the Federal Register on June 20, 2005 (70 FR 35455).
By letter dated May 7, 2005, the Plaintiffs applied to the
USCIT for judicial review. On February 7, 2006, the USCIT
granted the Department’s request for voluntary remand and
directed the Department to conduct further investigation
regarding the workers’ eligibility to apply for TAA and ATAA.
During the remand investigation, the Department contacted
the subject company to ascertain what products were produced at
the subject facility during the relevant period and whether the
subject company or its customers had imported those articles
during the relevant period.
A careful review of the newly-obtained information has
revealed that the subject company had produced ceramic filters
and ceramic sensors during 2003, 2004, and 2005 and that the
workers were not separately identifiable by product line. The
new information also revealed that some production of ceramic
sensors shifted to China and that finished ceramic sensors
manufactured in China were shipped to customers in the United
States.
Additional investigation has determined that the workers
possess skills that are not easily transferable. A significant
number or proportion of the worker group are age fifty years or
over. Competitive conditions within the industry are adverse.
Conclusion
After careful review of the facts generated through the
remand investigation, I determine that increased imports of
ceramic sensors like or directly competitive with those produced
by the subject firm contributed importantly to the total or
partial separation of a significant number of workers at the
subject facility. In accordance with the provisions of the Act,
I make the following certification:
"All workers of CTS Corporation, CTS Communications
Components, Inc., Including On-Site Leased Workers of Excel
and Spherion, Albuquerque, New Mexico, who became totally
or partially separated from employment on or after February
28, 2004, through two years from the issuance of this
revised determination, are eligible to apply for Trade
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 at Washington, D.C. this 22nd day of March 2006.


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


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-56,674

CTS CORPORATION
CTS COMMUNICATIONS COMPONENTS, INC.
INCLUDING ON-SITE LEASED WORKERS OF EXCEL AND SPHERION
ALBUQUERQUE, NEW MEXICO

Negative Determinations 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. 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 March 3, 2005 in
response to a petition filed on behalf of workers CTS
Corporation, CTS Communications Components, Inc., Albuquerque,
New Mexico. The workers at the subject firm produce ceramic
blocks/filters and sensors; workers are not separately
identifiable by product line.
The subject firm also leased some workers from Excel and
Spherion.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II. B) have not been met.
The investigation revealed that the subject firm did not
import ceramic blocks/filters or sensors in 2003, 2004, or
during the period of January through February 2005.
Furthermore, although the subject firm did shift production
of ceramic blocks/filters and sensors abroad during the relevant
period, not to a country that is a party to a free trade
agreement with the United States or is a beneficiary country
under the Andean Trade Preference Act, African Growth and
Opportunity Act, or the Caribbean Basin Economic Recovery Act.
The Department of Labor surveyed the subject firm’s major
declining customers regarding their purchases of ceramic
blocks/filters and sensors. This survey revealed that customers
did not increase imports of ceramic blocks/filters and sensors
while reducing purchases from the subject firm 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 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 of the facts obtained during this
investigation, I determine that all workers of CTS Corporation,
CTS Communications Components, Inc., including on-site leased
workers from Excel and Spherion, Albuquerque, New Mexico 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 15th day of April 2005.

/s/ Linda G. Poole

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