DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-81,942

OCHOCO LUMBER COMPANY
MALHEUR LUMBER COMPANY DIVISION
JOHN DAY, OREGON

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 three 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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines
the terms "Supplier" and "Downstream Producer." 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.

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 Trade
Adjustment Assistance (TAA) petition filed on September 6,
2012 by a company official on behalf of workers of Ochoco
Lumber Company, Malheur Lumber Company Division, John Day,
Oregon (Ochoco Lumber Company). The workers' firm is engaged
in activities related to the production of softwood lumber
used for a variety of products (such as windows, doors,
furniture, molding and cabinets). The workers' firm does not,
however, produce windows, doors, furniture, molding and
cabinets. The worker group does not include any leased or
temporary workers.
The petition alleges that increased imports of lumber and
foreign competition have "directly led to the closure" of the
subject facility. The petition states that sawmill operations
will cease on "10-31-2012" and that planning operations will
cease on "11-30-2012."
During the course of the investigation, information was
collected from the workers' firm.
During the investigation, the Department received revised
information from the company official that operations at
Ochoco Lumber Company will cease in 2013.
With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that Ochoco Lumber Company has not
experienced a decline in the sales or production of softwood
lumber during the period under investigation. Rather, sales
and production increased during January through August 2012 as
compared to the corresponding 2011 period. Further, sales and
production increased during the same period that the threat of
worker separations occurred.
While there is a scheduled closure in 2013, the subject
firm has not experienced actual sales and/or production
declines. When there is a decline in sales or production, the
Department encourages the petitioning company official to file
a new TAA petition.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Ochoco Lumber Company did not
shift production of softwood lumber (or like or directly
competitive articles) 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 Ochoco Lumber Company 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 Ochoco Lumber Company 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 Ochoco
Lumber Company, Malheur Lumber Company Division, John Day,
Oregon to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 2nd day of October, 2012


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