DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-63,961

SAGINAW MACHINE SYSTEMS, INC.
INCLUDING ON-SITE LEASED WORKERS FROM THINK RESOURCES AND
AEROTECH
SAGINAW, MICHIGAN

Certification 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 its investigation regarding certification of eligibility
to apply for worker adjustment assistance.
In order to make an affirmative determination and issue a
certification of eligibility to apply for Trade Adjustment
Assistance, the group eligibility requirements in either paragraph
(a)(2)(A) or (a)(2)(B) of Section 222 of the Trade Act must be met.
It is determined in this case that the requirements of (a)(2)(A) of
Section 222 have been met.
The investigation was initiated on September 2, 2008 in
response to a petition filed by a state agency representative on
behalf of workers of Saginaw Machine Systems, Inc., Saginaw,
Michigan. Workers at the subject firm produce CNC (metal removal)
machine tools.
The subject firm also utilized leased/contract workers from
Think Resources and Aerotech.
Employment and production at the subject firm declined from
January through August 2008 when compared to the same period in
2007.
The Department of Labor surveyed the subject firm's major
declining customers regarding purchases of CNC machine tools and
like or directly competitive articles for 2006, 2007, January
through August 2007, and January through August 2008. Furthermore,
bid surveys were sent out to firms to which the subject firm placed
bids. The bid surveys revealed projects were awarded to producers,
manufacturing the machine tools abroad, based on a competitive
pricing system. The subject firm was the lowest domestic bidder.
U.S. imports of these machine tools have increased.
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 group eligibility requirements
of Section 246 of the Trade Act must be met. The Department has
determined in this case that the requirements of Section 246 have
been met.
A significant number of workers at the firm are age 50 or over
and do not possess skills that are easily transferable.
Competitive conditions within the industry are adverse.



Conclusion
After careful review of the facts obtained in the
investigation, I determine that increases of imports of articles
like or directly competitive with CNC machine tools at Saginaw
Machine Systems, Inc., Saginaw, Michigan, contributed importantly
to the total or partial separation of workers and to the decline in
sales or production at that firm or subdivision. In accordance
with the provisions of the Act, I make the following certification:
"All workers of Saginaw Machine Systems, Inc., Saginaw,
Michigan, including on-site leased workers from Think
Resources and Aerotech who became totally or partially
separated from employment on or after August 27, 2007 through
two years from the date of certification are eligible to apply
for adjustment assistance under Section 223 of the Trade Act
of 1974, and are also eligible 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 November 2008

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