DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-81,527

ALLIANT TECHSYSTEMS OPERATIONS, LLC (ATK)
RADFORD FACILITY ARMY AMMUNITION PLANT
ENERGETIC SYSTEMS DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM
VALLEY STAFFING, BRIGHT SERVICES, AND KELLY SERVICES
RADFORD, VIRGINIA

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), (b)
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and
(e). 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 criteria must be met:
(1) 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.

(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) (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.
(iii) the increase in imports 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.

(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
(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; and
(ii) the shift described in clause (i)(I) or the
acquisition of articles or services described in
clause (i)(II) contributed importantly to such
workers' separation or threat of separation.

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
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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines
the terms "Supplier" and "Downstream Producer."
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(e) of the Act, 19 U.S.C. § 2272(e).
The group eligibility requirements for workers of a firm
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), 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 April 24, 2012 on behalf of workers of Alliant
Techsystems Operations, LLC (ATK), Radford Facility Army
Ammunition Plant, Energetic Systems Division, Radford,
Virginia. The workers' firm is engaged in activities related
to the production of rocket and gun propellants and other
energetic materials. Specifically, the workers manufacture
acids, nitroglycerine, nitrocellulose, MK90 propellant grain
and solvent propellants for use in ammunition that are fired
from tanks, artillery, mortars, and small and medium caliber
guns. The workers also produce smokeless powders for
commercial ammunition. The workers are not separately
identifiable. The subject worker group includes on-site leased
workers from Valley Staffing, Bright Services, and Kelly
Services.
The petitioners allege that there was a lost contract to
operate the plant owned by the United States Army to a firm
with workers located outside the United States that could
perform their duties. The petitioners also alleged that ATK
had lost bids on contracts related to production of articles
to foreign competition. Finally, the petitioners also alleged
that ATK entered into contractual agreements to produce
articles like or directly competitive with rocket and gun
propellants and other energetic materials in a foreign
country.
During the course of the investigation, information was
collected from the petitioners, workers' firm, the firm's
major customers, and a bid survey on a lost contract.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that the firm does not import articles
like or directly competitive with rocket and gun propellants
and other energetic materials. Additionally, the firm's
customer purchases of articles produced outside the United
States like or directly competitive with rocket and gun
propellants and other energetic materials have not increased.
A survey of ATK's major customers revealed that imports of
articles like or directly competitive with rocket and gun
propellants and other energetic materials have/had not
increased in 2011 compared to 2010, and during the first four
months of 2012 over the corresponding 2011 period. Neither
the firm nor the firm's customers have/had increased reliance
on imports during the relevant period.
A survey of ATK's lost bid contract revealed that ATK
lost a contract to produce articles at the subject location to
a firm located in the United States. The winner of the
contract is not subcontracting the work to a foreign country.
ATK has not contracted the production of articles like or
directly competitive to gun propellants and other energetic
materials to be performed outside the United States.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the
production of articles that are like or directly competitive
with gun propellants and other energetic materials to a
foreign country or acquire articles that are like or directly
competitive from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that ATK is not a Supplier 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that ATK does not act as a Downstream
Producer to a firm (or subdivision, whichever is applicable)
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).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either because
Criterion (1) has not been met since the workers' firm has not
been publically identified by name by the International Trade
Commission as a member of a domestic industry in an
investigation resulting in an affirmative finding of serious
injury, market disruption, or material injury, or threat
thereof.


Conclusion
After careful review of the facts obtained in the
investigation, I determine that the requirements of Section
222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Alliant
Techsystems Operations, LLC (ATK), Radford Facility Army
Ammunition Plant, Energetic Systems Division, Radford,
Virginia engaged in activities related to the production of
rocket and gun propellants and other energetic materials
(Specifically, acids, nitroglycerine, nitrocellulose, MK90
propellant grain, solvent propellants, and smokeless powders
for use in ammunition that are fired from tanks, artillery,
mortars, small and medium caliber guns for both military and
commercial use) to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 29th day of June, 2012


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