Denied
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TAW-61185  /  Loparex, Inc. (Dixon, IL)

Petitioner Type: Union
Impact Date:
Filed Date: 03/27/2007
Most Recent Update: 05/11/2007
Determination Date: 05/11/2007
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-61,185

LOPAREX LLC
DIXON, ILLINOIS

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. 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 27, 2007 in
response to a petition filed by the United Food and Commercial
Workers International Union and International Chemical Workers
Union, Local 758-C on behalf of workers at Loparex LLC, Dixon,
Illinois. Workers at the subject firm are engaged in the
production of release liners and films used to protect adhesive
until application.
The investigation revealed that criteria (a)(2)(A)(I.B) and
(a)(2)(B)(II.B) have not been met.
The investigation revealed company sales and production of
release liners and films did not decline from 2005 through 2006
and remained stable during January through March 2007 over the
corresponding 2006 period.
The investigation revealed that the predominant cause of
the layoffs at the subject facility was related to a transfer of
the functions performed by the subject facility to another
affiliated domestic facility. The company shifted plant
production in order to lower costs, utilize recent investments
in equipment, and be more efficient and productive.
Petitioners alleged that job losses were due to the company
shifting production to China. The investigation revealed,
however, that was not the case.
The investigation further revealed that the subject firm
did not transfer production of release liners and films to a
foreign country during the period under investigation.
Petitioners also allege that the job losses at the subject
company were due to the company losing business as a downstream
producer to a firm (or subdivision) whose workers received
certification of eligibility to apply for trade adjustment
assistance benefits. However, that was not the case since the
customer for whom the company supplies release liners and film
did not account for at least 20 percent of its production or
sales of the subject firm.
The investigation further revealed that the sales to the
certified firm were negligible and therefore the loss of that
business did not contribute importantly under secondary impact.
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 in the
investigation, I determine that all workers of Loparex LLC,
Dixon, Illinois, 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 at Washington, D.C., this 11th day of May, 2007.

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