Denied
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TAW-65784  /  Oval International (Hoquiam, WA)

Petitioner Type: State
Impact Date:
Filed Date: 04/10/2009
Most Recent Update: 08/06/2009
Determination Date: 08/06/2009
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-65,784

OVAL INTERNATIONAL
HOQUIAM, WASHINGTON

Notice of Negative Determination
on Reconsideration

On September 29, 2009, the Department issued an Affirmative
Determination Regarding Application for Reconsideration for the
workers and former workers of the subject firm. The notice was
published in the Federal Register on October 20, 2009 (74 FR
53763).
The initial investigation resulted in a negative
determination based on the finding that imports of pulp bale
strapping machines and spare parts did not contribute importantly
to worker separations at the subject firm and no shift of
production to a foreign source occurred. The “contributed
importantly” test is generally demonstrated through a survey of
the workers’ firm’s declining domestic customers. The survey of
the major declining customers revealed no imports of pulp bale
strapping machines and spare parts 2007, 2008 and January through
March 2009. The subject firm reported declining imports of pulp
bale strapping machines and spare parts during the relevant
period.

In the request for reconsideration, the petitioner stated
that workers of the subject firm were previously certified
eligible for Trade Adjustment Assistance (TAA) based on a shift
in production to Canada and other offshore locations. The
petitioner further stated that since the production shift,
workers of the subject firm “mainly dealt with sales, service,
production and distribution of spare parts.” The petitioner also
alleged that the company continued shifting production of spare
parts abroad and that imports of spare parts increased.
When assessing eligibility for TAA, the Department
exclusively considers shift in production and import impact
during the relevant period (from one year prior to the date of
the petition). The Department of Labor contacted a company
official to verify whether Oval International shifted production
of spare parts from the subject facility abroad during the
relevant period. The company official stated that the subject
firm did not shift production of spare parts abroad in 2008 or
2009.
Furthermore, the investigation revealed that neither the
subject firm nor its customers increased imports of pulp bale
strapping machines and spare parts during the relevant period.



Conclusion
After reconsideration, I affirm the original notice of
negative determination of eligibility to apply for worker
adjustment assistance for workers and former workers of Oval
International, Hoquiam, Washington.
Signed at Washington, D.C., this 10th day of December 2009


/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-65,784

OVAL INTERNATIONAL
HOQUIAM, 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, 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:
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;
1. 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
2. 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 April 10, 2009 in response
to a petition filed by a state agency representative on behalf of
workers of Oval International, Hoquiam, Washington. The workers
produce pulp bale strapping machines and spare parts. The workers
are not separately identifiable by product.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) have not been met.
The subject firm did not shift production of produce pulp bale
strapping machines or spare parts to a foreign country. Company-
wide of like or directly competitive articles were negligible from
2007 to 2008. Imports declined absolutely in the first quarter of
2009 when compared to the same period of 2008.
The Department of Labor surveyed the subject firm’s major
declining customers regarding their purchases of pulp bale
strapping machines and spare parts, including like or directly
competitive articles in 2007, 2008, and January through March 2009.
The survey revealed that the customers did not purchase imports
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 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 Oval International,
Hoquiam, 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 6th day of August 2009


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





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