Denied
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TAW-81698  /  Lehigh Fabrication (Whitehall, PA)

Petitioner Type: Workers
Impact Date:
Filed Date: 06/11/2012
Most Recent Update: 09/07/2012
Determination Date: 09/07/2012
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-81,698

LEHIGH FABRICATION
A SUBSIDIARY OF OAKWOOD CAPITAL, LLC
INCLUDING ON-SITE LEASED WORKERS FROM
ONE SOURCE STAFFING SOLUTIONS
INCLUDING WORKERS WHOSE UNEMPLOYMENT INSURANCE (UI) WAGES WERE
REPORTED THROUGH CONTICO CORP.
WHITEHALL, PENNSYLVANIA

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 June 11, 2012 on behalf of workers of Lehigh
Fabrication, a subsidiary of Oakwood Capital, LLC., Whitehall,
Pennsylvania (Lehigh Fab). The workers' firm is engaged in
activities related to the production of structural steel
fabrications. Specifically, the workers fabricate steel for
bridges, buildings, street lamps, highway signs, etc. The
workers fabricated structural steel for temporary and
permanent installations on construction projects. The workers
are contractors and subcontractors for local, state, federal
government. The subject worker group includes on-site leased
workers from One Source Staffing Solutions and workers whose
unemployment insurance (UI) wages were reported through
Contico Corp.
The petitioners alleged that an affiliated firm had
acquired production of structural steel fabrications from a
foreign country and imported the structural steel into the
United States to be fabricated by the workers.
During the course of the investigation, information was
collected from the workers' firm and surveys were sent to the
firm's major declining customers.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that the firm did not import
structural steel fabrications like or directly competitive
from the subject firm comparing 2010 to 2011 and comparing
January through May 2011 to January through May 2012. Surveys
from the firm's major declining customers revealed no imports
of structural steel fabrications like or directly competitive
to those produced by the workers during the relevant period.
In response to the allegations, the subject firm did not have
the capabilities to fabricate the items that were imported
from Canada. The articles imported from Canada by Lehigh Fab
were not like or directly competitive to those fabricated by
the workers of the subject firm. Lehigh Fab did not possess
the capability of fabricating the articles that were imported.
Increased imports of articles did not contribute importantly
to the worker separations at the subject firm.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the
production of structural steel fabrications or a like or
directly competitive article to a foreign country or acquire
structural steel fabrications or a like or directly
competitive article from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Lehigh Fab 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 Lehigh Fab 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 Lehigh
Fabrication, a subsidiary of Oakwood Capital, LLC., including
on-site leased workers from One Source Staffing Solutions,
including workers


whose unemployment insurance (UI) wages were reported through
Contico Corp., Whitehall, Pennsylvania engaged in activities
related to the production of structural steel fabrications to
apply for adjustment assistance, in accordance with Section
223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 7th day of September, 2012


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