Denied
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TAW-75072A  /  NGC Shared Services (Charlotte, NC)

Petitioner Type: Workers
Impact Date:
Filed Date: 01/07/2011
Most Recent Update: 02/09/2011
Determination Date: 02/09/2011
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-75,072
NEW NGC, INC. DBA NATIONAL GYPSUM COMPANY
HEADQUARTERS
CHARLOTTE, NORTH CAROLINA

TA-W-75,072A
NGC SHARED SERVICES
CHARLOTTE, NORTH CAROLINA

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 January 7, 2011 on behalf of workers of New NGC, Inc.
dba National Gypsum Company, Headquarters, Charlotte, North
Carolina (TA-W-75,072) and NGC Shared Services, Charlotte,
North Carolina (TA-W-75,072A) ("NGC"). The workers are engaged
in activities related to the supply executive, managerial,
administrative and financial services. The workers are
separately identifiable. Administrative and financial functions
are under TA-W-75,072 and executive and managerial services are
under TA-W-75,072A. The two groups report their wages under
different Federal Employment Identification Numbers.
The investigation included contact and requests for
information from NGC.
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 NGC did not
increase imports of executive, managerial, administrative and
financial services when comparing 2008 to 2009, and the first
eleven months of 2010 over the corresponding 2009 period. NGC
did not shift or acquire executive, managerial, administrative
and financial services to a foreign country during the
relevant period.
The workers alleged that, "Tainted Chinese wallboard
flooded the market in 2003 through 2007 time frame, short
cutting profitability at domestic wallboard makers like National
Gypsum and undermining their ability to sustain employment
during the downturn in housing."
In response to the allegations, NGC did not produce
wallboard on-site at Charlotte, North Carolina and the
services supplied by the workers were not in support of any
NGC production activity. Furthermore, the time period of 2003
through 2007 is not within the relevant period of this
investigation.
Criterion III has not been met because the worker
separations were not related to an increase in imports of
executive, managerial, administrative and financial services
or a shift or acquisition of executive, managerial,
administrative and financial services to a foreign country.
With respect to Section 222(c) of the Act, the
investigation revealed that criterion (2) has not been met
because NGC does not supply executive, managerial,
administrative and financial services to a Trade Adjustment
Assistance certified firm.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because NGC has not been identified in an affirmative
determination of injury by the International Trade Commission.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of New NGC, Inc. dba
National Gypsum Company, Headquarters, Charlotte, North
Carolina (TA-W-75,072) and NGC Shared Services, Charlotte,
North Carolina (TA-W-75,072A) who are engaged in activities
related to the supply of executive, managerial, administrative
and financial services 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 9th day of February, 2011

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