DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,718

SCHOELLER ARCA SYSTEMS
TACOMA, WASHINGTON

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 qualifies as adversely affected
secondary workers as suppliers of component parts to a firm or
subdivision primarily affected by increased imports or a shift in
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 January 25, 2006, in
response to a petition filed by Lumber & Sawmill Local 2633 on
behalf of workers of Schoeller Arca Systems, in Tacoma, Washington.
The workers produce industrial, collapsible plastic pallet
containers, and are not separately identifiable by specific product
line.
The investigation revealed that criterion (2) has not been
met.
The petitioner alleges that job losses are due to the firm
losing business as a supplier to a firm that shifted production
abroad or was affected by increased imports. The investigation
revealed, however, that was not the case.
The industrial, collapsible plastic pallet containers are
not a component part of an article produced by the customers of
the subject firm.
Worker separations at the subject plant are the result of
potential declining demand from customers and are not the result
of a loss of business to non-U.S. competitors. Sales and
production of industrial, collapsible plastic pallet containers
by Schoeller Arca Systems, Tacoma, Washington, increased from
2004 to 2005.
The subject firm did not import industrial, collapsible
plastic pallet containers, nor was there a shift in production
of industrial, collapsible plastic pallet containers to a foreign
country 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 the
investigation, I determine that all workers of Schoeller Arca
Systems, in Tacoma, Washington, 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 7th day of February 2006.


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