Denied
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TAW-60078  /  Weyerhaeuser Company (Lebanon, OR)

Petitioner Type: Union
Impact Date:
Filed Date: 09/14/2006
Most Recent Update: 10/19/2006
Determination Date: 10/19/2006
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-60,078

WEYERHAEUSER COMPANY
LEBANON LUMBER DIVISION
LEBANON, OREGON


Notice of Negative Determination
on Reconsideration

On December 15, 2006, the Department issued an Affirmative
Determination Regarding Application for Reconsideration for the
workers and former workers of Weyerhaeuser Company, Lebanon
Lumber Division, Lebanon, Oregon (the subject firm). The
Department’s Notice of affirmative determination was published in
the Federal Register on December 21, 2006 (71 FR 76700).
The initial denial of the workers’ eligibility to apply for
Trade Adjustment Assistance (TAA) and Alternative Trade
Adjustment Assistance (ATAA) was based on the Department’s
findings that the workers produce green softwood stud lumber; the
subject firm neither imported green softwood stud lumber nor
shifted production of green softwood stud lumber overseas during
the relevant period; and the subject firm’s major declining
customers had negligible imports of green softwood stud lumber
during the surveyed periods. The Department’s Notice of
determination was issued on October 19, 2006 and published in the
Federal Register on November 6, 2006 (71 FR 65004).
The request for reconsideration, filed by the United
Brotherhood of Carpenters and Joiners of America, Carpenters
Industrial Council, Local 2791 (Union), alleges that Weyerhaeuser
Company purchased a softwood lumber production facility in
Canada, inferring that the subject firm has increased imports of
lumber or articles like or directly competitive with lumber
produced at the subject facility.
During the reconsideration investigation, the Department
discussed the allegations with the Union, sought clarification
from the subject firm regarding Weyerhaeuser Company’s Canadian
lumber production facilities, and conducted a customer survey
regarding imports of stud lumber and articles like or directly
competitive with stud lumber produced at the subject firm during
the relevant period.
During the reconsideration investigation, the Department
determined that kiln-dried lumber and engineered wood products
are like or directly competitive with green stud lumber. As such,
the Department conducted an expanded customer survey to determine
whether the subject firm’s major declining customers had
increased import purchases of green stud lumber and articles like
or directly competitive with green stud lumber produced at the
subject firm. The survey revealed no increased imports of green
stud lumber or articles like or directly competitive with green
stud lumber during the surveyed periods.
The reconsideration investigation also revealed that,
contrary to the Union’s allegation, Weyerhaeuser Company has not
purchased any lumber production facilities in Canada during the
relevant period. Further, an August 23, 2006 Weyerhaeuser
Company news release (attached to the petition) states that the
subject firm was replaced by a new, “world-class” sawmill in the
Lebanon, Oregon area.
In the request for reconsideration, the Union requested that
the Department review the articles submitted with the petition
and the findings by the U.S International Trade Commission
(USITC) regarding Investigation Nos. 701-TA-414 and 731-TA-928.
“Increased imports means that imports have increased either
absolutely or relative to domestic production compared to a
representative base period. The representative base period shall
be one year consisting of the four quarters immediately preceding
the date which is twelve months prior to the date of the
petition.” 29 CFR Section 90.2 Because the petition is dated
September 13, 2006, the Department determines that the relevant
period is September 2005 through August 2006.
While “News Release,” Weyerhaeuser, August 23, 2006, states
that Weyerhaeuser Company “operates lumber mills in eight states
and four provinces in Canada,” it does not infer any shift of
production to Canada or increased imports from Canada. Further,
the article explains that the new sawmill to which production is
shifting is also in the Lebanon, Oregon area.
While Weyerhaeuser Company’s “Forward Looking Statement”
(July 25, 2006) acknowledges that Weyerhaeuser Company has
concerns about its third quarter 2006 performance, it does not
infer any shift of production to Canada or increased imports from
Canada.
Although “News Release,” Weyerhaeuser, July 25, 2006, states
that second quarter 2006 earnings are lower than second quarter
2005 earnings, the article also states that costs Weyerhaeuser
Company incurred on Canadian softwood lumber sold into the U.S.
in the second quarter of 2006 were lower than first quarter 2006.
“Coalition for Fair Lumber Imports: WTO Again Rejects
Canadian Attack on Softwood Lumber Duties,” Coalition for Fair
Lumber Imports, April 13, 2006, states that the World Trade
Organization Appellate Body’s decision to support an ITC
determination (issued on November 24, 2004) that U.S. lumber
producers are threatened with material injury by imports of
dumped and subsidized softwood lumber from Canada is correct.
However, because the events relevant to the ITC’s determination
occurred outside the relevant period, it cannot be a basis for
the subject workers’ eligibility to apply for TAA.
Similarly, because data in the International Trade Report,
December 2004, and the USITC determination (issued July 30, 2004)
regarding Investigation Nos. 701-TA-414 and 731-TA-928, fall
outside the relevant time period, they cannot be a basis for the
subject workers’ eligibility to apply for TAA.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the subject worker group must be
certified eligible to apply for TAA. Since the subject workers
are denied eligibility to apply for TAA, the workers cannot be
certified eligible for ATAA.
Conclusion
After careful reconsideration, I affirm the original notice
of negative determination of eligibility to apply for worker
adjustment assistance for workers and former workers of
Weyerhaeuser Company, Lebanon Lumber Division, Lebanon, Oregon.

Signed at Washington, D.C. this 14th day of March 2007


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

4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-60,078

WEYERHAEUSER COMPANY
LEBANON LUMBER DIVISION
LEBANON, OREGON

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 September 14, 2006 in
response to a petition filed by the United Brotherhood of
Carpenters and Joiners of America, Carpenters Industrial Council,
Local 2791 on behalf of workers of Weyerhaeuser Company, Lebanon
Lumber Division, Lebanon, Oregon. The workers at the subject firm
produce lumber studs.
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 lumber studs or shift its production abroad in 2004, 2005,
or during the period of January through August 2006.
The Department of Labor surveyed the subject firm’s major
declining customers regarding their purchases of 2x4 green df
studs. This survey revealed negligible imports of 2x4 green df
studs.
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 workers of Weyerhaeuser Company,
Lebanon Lumber Division, Lebanon, Oregon 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 19th day of October 2006


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






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