Denied
« back to search results

TAW-80222  /  Saint-Gobain Abrasives Inc. (Watervliet, NY)

Petitioner Type: Union
Impact Date:
Filed Date: 06/07/2011
Most Recent Update: 07/22/2011
Determination Date: 07/22/2011
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,222

SAINT-GOBAIN ABRASIVES INC.
COATED ABRASIVES SOA DIVISION
WATERVLIET, NEW YORK

Negative Determinations 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 ("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) and
(b) of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). 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:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that 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
(2) 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) 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
(ii)(I) 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;
(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the African Growth and Opportunity Act,
or the Caribbean Basin Economic Recovery Act; or
(III)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.

For the Department to issue a secondary worker
certification under Section 222(b) of the Act, 19 U.S.C. §
2272(b), 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 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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
The investigation was initiated in response to a petition
filed on June 7, 2011, by the United Steelworkers of America,
Local 17 on behalf of workers of Saint-Gobain Abrasives,
Watervliet, New York. The workers' firm is engaged in
activities related to the production of coated abrasives.
The petitioner alleged that their customers began
importing products from abroad.
With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that the sales and production of the
workers' firm have not declined during 2009, 2010 or 2011.
Rather, the investigation confirmed that sales and/or production
are expected to decline later this year following expiration of
a contract with a major customer.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that there has not been a shift in
production of coated abrasives by the workers' firm to a foreign
country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Saint-Gobain Abrasives, Inc. is
not 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).
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(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 Saint-Gobain
Abrasives, Watervliet, New York engaged in activities related
to the production of coated abrasives are denied eligibility to
apply for adjustment assistance under Section 223 of the Trade
Act of 1974, as amended, and are also denied eligibility to
apply for alternative trade adjustment assistance under Section
246 of the Trade Act of 1974, amended.
Signed in Washington, D.C. this 22nd day of July, 2011

/s/Michael Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance