DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-61,983

MOLON MOTOR AND COIL CORPORATION
EL PASO, TEXAS

Notice of Negative Determination
Regarding Application for Reconsideration

By application dated September 17, 2007, the petitioner
requested administrative reconsideration of the Department's
negative determination regarding eligibility to apply for Trade
Adjustment Assistance (TAA), applicable to workers and former
workers of the subject firm. The denial notice was signed on
September 7, 2007 and published in the Federal Register on
September 21, 2007 (72 FR 54076).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) if in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.



The petition for the workers of Molon Motor and Coil
Corporation, El Paso, Texas engaged in production of vacuum
cleaner motors was denied because the “contributed importantly”
group eligibility requirement of Section 222 of the Trade Act of
1974, as amended, was not met. The “contributed importantly”
test is generally demonstrated through a survey of the workers’
firm’s declining customers. The investigation revealed that all
vacuum cleaner motors produced by the subject firm were exported
to Mexico and the subject firm had no domestic customers. The
investigation further revealed that there was no shift in
production from that firm to a foreign country nor did the
subject firm import vacuum cleaner motors in 2005, 2006 and
January through July 2007.
The petitioner attached a letter from the subject firm’s
customer indicating that this customer “discontinued use of the
Molon motors in favor of an Asian sourced motor” and that this
customer “was the sole customer using the motors produced” at the
subject firm.
The Department contacted the sole customer of the subject
firm for further clarification. The customer confirmed that even
though his firm is a U.S. based company, the production facility
for which the vacuum cleaner motors were purchased is located in
Mexico. The customer stated that all vacuum cleaner motors
purchased from the subject firm were shipped directly to the
Mexican facility and thus were exports. This facility in Mexico
is now purchasing vacuum cleaner motors from Asia and there was
no increase in imports of vacuum cleaner motors into the United
States by this customer. Therefore, the loss of business at the
subject firm is attributed to a loss in export sales.
Conclusion
After review of the application and investigative findings,
I conclude that there has been no error or misinterpretation of
the law or of the facts which would justify reconsideration of
the Department of Labor's prior decision. Accordingly, the
application is denied.

Signed in Washington, D.C., this 19th day of October, 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-61,983

MOLON MOTOR AND COIL CORPORATION
EL PASO, TEXAS

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 August 14, 2007, in
response to a petition filed on behalf of workers of Molon Motor
and Coil Corporation, El Paso, Texas. The workers produce vacuum
cleaner motors.
The investigation revealed that criteria II.B and I.C have not
been met.
There has been no production shift by the subject firm to any
foreign location nor did the company import motors during the
relevant period.
Imports of like or directly competitive products have not
adversely affected workers at the subject firm. The motors that
were produced in El Paso were sent directly to a foreign
manufactory producing vacuum cleaners and are thus an exported
product. Loss of export sales cannot be used as a basis for
certification under the Trade Act of 1974.
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 Molon Motor and
Coil Corporation, El Paso, Texas 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 September 2007

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





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