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TAW-70827  /  FormTech Industries, LLC (Minerva, OH)

Petitioner Type: Union
Impact Date: 05/21/2008
Filed Date: 06/01/2009
Most Recent Update: 11/05/2009
Determination Date: 11/05/2009
Expiration Date: 07/30/2012

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-70,827

FORMTECH INDUSTRIES, LLC
MINERVA DIVISION
MINERVA, OHIO

Notice of Revised Determination
on Reconsideration


On January 21, 2010, the Department issued a Notice of
Affirmative Determination Regarding Application for Reconsideration
applicable to workers of Formtech Industries, LLC, Minerva
Division, Minerva, Ohio. The Department’s Notice was published in
the Federal Register on February 16, 2010 (75 FR 7030).
During the reconsideration investigation, the Department
investigated the allegations that imports of like or directly
competitive articles had increased and that the subject firm
supplied component parts (steel forgings) to several firms that
employed worker groups that are eligible to apply for Trade
Adjustment Assistance (TAA).
While the reconsideration investigation did not reveal
increased imports of articles like or directly competitive with
the steel forgings produced at the subject firm, the Department
did confirm that the subject firm did supply component parts to
several firms that employed worker groups that are eligible to
apply for TAA, and that one of the firms employed a worker group
that was eligible to apply for TAA during the relevant period.
Based on the information obtained during the reconsideration
investigation, the Department has determined that the workers of
the subject firm are eligible to apply for TAA as adversely
affected secondary workers.
Conclusion
After careful review of the additional facts obtained during
the reconsideration investigation, I determine that workers of
FormTech Industries, LLC, Minerva Division, Minerva, Ohio, meet the
worker group certification criteria under Section 222(c) of the
Act, 19 U.S.C. § 2272(c). In accordance with Section 223 of the
Act, 19 U.S.C. § 2273, I make the following certification:
"All workers of FormTech Industries, LLC, Minerva Division,
Minerva, Ohio, who became totally or partially separated from
employment on or after May 21, 2008, through two years from
the date of this revised certification, and all workers in the
group threatened with total or partial separation from
employment on date of certification through two years from the
date of certification, are eligible to apply for adjustment
assistance under Chapter 2 of Title II of the Trade Act of
1974, as amended.”
Signed in Washington, D.C., this 30th day of July, 2010

/s/ Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Division of
Trade Adjustment Assistance
4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-70,827

FORMTECH INDUSTRIES, LLC
MINERVA DIVISION
MINERVA, OHIO


Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (“Act”), 19 U.S.C. § 2273, the Department of Labor herein
presents the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (c) or
(f) of Section 222 of the Act, 19 U.S.C. § 2272(a), (c), (f). For
the Department of Labor to issue a certification for workers under
Section 222(a) of the Act, 19 U.S.C. § 2272(a), the following three
criteria must be met:
I. The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers’ firm must
have become totally or partially separated or be threatened
with total or partial separation.

II. The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers’ firm must
have decreased absolutely, AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers’ firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the component
part produced by the workers’ firm was directly
incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers’ firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article into
which the component part produced by the workers’
firm was directly incorporated have increased.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers’ firm to a
foreign country in the production of articles or supply
of services like or directly competitive with those
produced/supplied by the workers’ firm; OR
(i)(II) there has been an acquisition from a foreign country
by the workers’ firm of articles/services that are like
or directly competitive with those produced/supplied by
the workers’ firm.

III. The third criterion requires that the increase in imports or
shift/acquisition must have contributed importantly to the
workers’ separation or threat of separation. See Sections
222(a)(2)(A)(iii) and 222(a)(2)(B)(ii) of the Act, 19 U.S.C.
§§ 2272(a)(2)(A)(iii), 2272(a)(2)(B)(ii).

Section 222(d) of the Act, 19 U.S.C. § 2272(d), defines the
terms “Supplier” and “Downstream Producer.” For the Department to
issue a secondary worker certification under Section 222(c) of the
Act, 19 U.S.C. § 2272(c), to workers of a Supplier or a Downstream
Producer, the following criteria must be met:
(1) a significant number or proportion of the workers in the
workers’ firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers’ firm is a Supplier or Downstream Producer to
a firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the
Act, 19 U.S.C. § 2272(a), and such supply or production
is related to the article or service that was the basis
for such certification; and

(3) either
(A) the workers’ firm is a supplier and the component parts
it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production or
sales of the workers’ firm; or
(B) a loss of business by the workers’ firm with the firm
described in paragraph (2) contributed importantly to the
workers’ separation or threat of separation.

Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission (ITC) as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(f) of the Act, 19 U.S.C. § 2272(f).
The group eligibility requirements for workers of a firm under
Section 222(f) of the Act, 19 U.S.C. § 2272(f), can be satisfied if
the following criteria are met:
(1) the workers’ firm is publicly identified by name by the
International Trade Commission as a member of a domestic
industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section 705(b)(1)(A)
or 735(b)(1)(A) of the Tariff Act of 1930 (19
U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A));
(2) the petition is filed during the 1-year period beginning
on the date on which--
(A) a summary of the report submitted to the President
by the International Trade Commission under section
202(f)(1) with respect to the affirmative
determination described in paragraph (1)(A) is
published in the Federal Register under section
202(f)(3); or
(B) notice of an affirmative determination described in
subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers’ firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b)(1), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on June 1, 2009, by United Steel Workers – Local 9478 on
behalf of FormTech Industries, LLC, Minerva Division, Minerva,
Ohio (FormTech Industries). The workers produce steel forgings
for automotive and non-automotive appliances. The workers are not
separately identifiable by type of forging.
The petitioners allege that worker separations occurred due
to a company decision to shift production to a joint venture in
India.
With respect to Section 222(a) of the Act, the investigation
revealed that Criterion III has not been met because the workers’
separations were not related to the increase in imports or
shift/acquisition. The investigation consisted of a survey of the
major declining customers of the subject firm which did not reveal
an increase in imports of the steel forgings.
With respect to Section 222(c) of the Act, the investigation
revealed that Criterion (2) has not been met because the workers
did not produce an article or supply a service that was used by a
firm with TAA-certified workers in the production of an article
or supply of a service that was the basis for TAA-certification.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because the workers’ firm has not been identified in an
affirmative finding of injury by the ITC.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of FormTech Industries,
LLC, Minerva Division, Minerva, Ohio, who are engaged in
production of steel forgings for automotive and non-automotive
appliances, are denied eligibility to apply for adjustment
assistance under Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C., this 5th day of November, 2009

/s/ Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Division of
Trade Adjustment Assistance



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