Denied
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TAW-81740  /  Graham Packaging Plastic Products, Inc. (Vandalia, IL)

Petitioner Type: State
Impact Date:
Filed Date: 06/21/2012
Most Recent Update: 11/09/2012
Determination Date: 11/09/2012
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-81,740

GRAMHAM PACKAGING PLASTIC PRODUCTS, INC.
A SUBSIDIARY OF GRAHAM PACKAGING COMPANY, INC.
VANDALIA, ILLINOIS

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 (ITC) 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 21, 2012 by the One Stop Operator on behalf of
workers of Graham Packaging Plastic Products, Inc., a
subsidiary of Graham Packaging Company, Inc., Vandalia,
Illinois (Graham Packaging). The workers' firm was engaged in
activities related to the production of blow molded rigid
plastic containers.
The petitioner alleges a shift of production to Mexico
and that the firm's major customers employed worker groups
certified eligible to apply for Trade Adjustment Assistance
(TAA). The petition included several attachments.
During the course of the investigation, the Department
collected information from the workers' firm and its
customers. The Department also reviewed the certifications of
the worker groups identified in the petition.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that that Criterion (2)(A)(ii) has not
been met because imports of articles like or directly
competitive with the blow molded rigid plastic containers
produced by Graham Packaging have not increased during the
relevant period.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the subject firm did not shift
production of articles like or directly competitive with blow
molded rigid plastic containers to a foreign country or
acquire the production of such articles from a foreign
country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Graham Packaging is not a Supplier
to, or act as a Downstream Producer for, 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).
Although several customers of the subject firm employ(ed)
worker groups who are eligible to apply for TAA (as asserted
in the petition), the containers supplied by the subject firm
are not component parts of those articles which are the basis
of the certification. For example, TA-W-81,420 (Pepsico,
Inc., Business & Information Solutions Division, Plano, Texas)
was certified based on the acquisition of the supply of
information technology support services from a foreign
country.
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied since the workers'
firm has not been publically identified by name by the ITC 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 Graham
Packaging Plastic Products, Inc., a subsidiary of Graham
Packaging Company, Inc., Vandalia, Illinois, to apply for
adjustment assistance, in accordance with Section 223 of the
Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 9th day of November, 2012


/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance