DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-56,698

DOMTAR INDUSTRIES, INC.
BAILEYVILLE, MAINE

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 March 8, 2005, in
response to a petition filed by the Paper, Allied-Industrial,
Chemical and Energy Workers International Union (PACE), Local 27,
on behalf of workers at Domtar Industries, Inc., Baileyville,
Maine. The workers produce fine paper (uncoated free sheet) and
northern hardwood market pulp; the workers are not separately
identifiable by product.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.C) were not met.
There was an insignificant decline in employment at Domtar
Industries, Inc., Baileyville, Maine, in January through February
2005 when compared to the same time period of 2004. Additional
worker separations are anticipated.
The subject firm did not decrease sales or production of fine
paper or market pulp from 2003 to 2004. There was, however, a
decline in production of fine paper in January through February
2005, when compared to the same months of 2004.
The Department determined that company imports of fine paper
were negligible from 2003 to 2004 and in January through February
2005 when compared to the same months of 2004.
The Department surveyed the major customer of Domtar
Industries, Inc., regarding its purchases of fine paper in 2002,
2003, and January through February 2005. The survey revealed that
the customer did not increase import purchases while reducing
purchases from the subject firm during the period of investigation.
There was no shift in the production of fine paper or hardwood
market pulp from Domtar Industries, Inc., Baileyville, Maine, to a
foreign country from 2003 through February 2005.
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 workers of Domtar
Industries, Inc., Baileyville, Maine, 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 April 2005.


/s/ Linda G. Poole
_______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance