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TAW-74549  /  Algonac Cast Products, Inc. (Algonac, MI)

Petitioner Type: Workers
Impact Date: 08/18/2009
Filed Date: 08/23/2010
Most Recent Update: 09/24/2010
Determination Date: 09/24/2010
Expiration Date: 05/02/2011

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-74,549

ALGONAC CAST PRODUCTS, INC.
ALGONAC, MICHIGAN

Notice of Revised Determination
on Reconsideration

On November 10, 2010, the Department issued a Notice of
Affirmative Determination Regarding Application for Reconsideration
for the workers and former workers of Algonac Cast Products, Inc.,
Algonac, Michigan (subject firm) to apply for Trade Adjustment
Assistance (TAA). The Department’s Notice was published in the
Federal Register on November 23, 2010 (75 FR 7145). Workers are
engaged in employment related to the production of marine hardware
and are not separately identifiable by article produced.
During the reconsideration investigation, the Department
received additional and new information from the subject firm,
conducted an expanded customer survey, and analyzed import data
of like or directly competitive articles.
Section 222(a)(1) has been met because a significant number
or proportion of workers at the subject firm became totally or
partially separated, or threatened with such separation.
Section 222(a)(2)(A)(i) has been met because subject firm
sales and production decreased during 2009 from 2008 levels.
Section 222(a)(2)(A)(ii) has been met because there were
increased imports of articles like or directly competitive with
marine hardware produced by the subject firm.
Finally, Section 222(a)(2)(A)(iii) has been met because the
increased imports contributed importantly to the worker group
separations and sales/production declines at Algonac Cast
Products, Inc., Algonac, Michigan.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I determine that workers and former workers
Algonac Cast Products, Inc., Algonac, Michigan, who are engaged in
employment related to the production of marine hardware, meet the
worker group certification criteria under Section 222(a) of the
Act, 19 U.S.C. § 2272(a). In accordance with Section 223 of the
Act, 19 U.S.C. § 2273, I make the following certification:
"All workers of Algonac Cast Products, Inc., Algonac,
Michigan, who became totally or partially separated from
employment on or after August 18, 2009, 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 2nd day of May, 2011

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

Employment and Training Administration

TA-W-74,549

ALGONAC CAST PRODUCTS, INC.
ALGONAC, MICHIGAN

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 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 August 23, 2010 on behalf of workers of Algonac Cast
Products, Inc., Algonac, Michigan. The workers are engaged in
activities related to the production of marine hardware (i.e.
rudders, struts, stuffing boxes, rudder arm, rudder support,
rudder clevis, etc.) and are not separately identifiable by
article.
The petitioners allege that they were separated from their
jobs and that the subject firm reduced their hours because of
foreign trade effects.
The investigation involved informational interviews with
company officials and a survey of the subject firm’s customers.
With respect to Section 222(a) of the Act, the investigation
revealed that Criterion II and III have not been met.
Criterion II has not been met because the subject firm did not
import or shift their production of marine hardware to a foreign
country during the relevant period.
Additionally, the U.S. Department of Labor surveyed the
subject firm’s major declining customers regarding their purchases
of marine hardware. The survey revealed that the customers did not
increase their reliance on imported marine hardware while
concurrently decreasing their purchases from the subject firm.
Criterion III has not been met because worker separations or
threats of separation were not related to an increase in imports of
marine hardware or a shift in production abroad.
With respect to Section 222(c) of the Act, the investigation
revealed that Criterion (2) has not been met because the workers
did not supply an article that was incorporated in the production
of an article by a firm whose workers were certified for Trade
Adjustment Assistance on the basis of that article.
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 International Trade Commission.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Algonac Cast Products,
Inc., Algonac, Michigan 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 24th day of September, 2010.

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


U.S. DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-74,549

ALGONAC CAST PRODUCTS, INC.
ALGONAC, MICHIGAN

Notice of Affirmative Determination
Regarding Application for Reconsideration

By application dated October 25, 2010, a worker requested
administrative reconsideration of the negative determination
regarding workers’ eligibility to apply for Trade Adjustment
Assistance (TAA) applicable to workers and former workers of
Algonac Cast Products, Inc., Algonac, Michigan (subject firm).
The determination was issued on September 24, 2010. The
Department’s Notice of Determination was published in the Federal
Register on October 8, 2010 (75 FR 62427). The workers are engaged
in activities related to the production of marine hardware (i.e.
rudders, struts, stuffing boxes, rudder arm, rudder support,
rudder clevis, etc.) and are not separately identifiable by
article produced.
The negative determination was based on the Department’s
findings that the subject firm did not import or shift their
production of marine hardware to a foreign country during the
relevant period; that the customers did not increase their reliance
on imported marine hardware while concurrently decreasing their
purchases from the subject firm; that worker separations or threats
of separation were not related to an increase in imports of marine
hardware; and that the workers did not produce an article that was
incorporated in the production of an article by a firm whose
workers were certified eligible to apply for TAA.
The request for reconsideration alleged that a lost bid
with Sea Ray Boats Corporation contributed importantly to
worker separations at the subject firm.
The Department has carefully reviewed the request for
reconsideration and the existing record, and has determined that
the Department will conduct further investigation to determine if
the petitioning workers meet the eligibility requirements of the
Trade Act of 1974, as amended.
Conclusion
After careful review of the application, I conclude that the
claim is of sufficient weight to justify reconsideration of the
U.S. Department of Labor's prior decision. The application is,
therefore, granted.
Signed at Washington, D.C., this 10th day of November, 2010
/s/ Del Min Amy Chen
_______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance

4510-FN-P







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