DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-81,948

VACUMET CORPORATION
PAPER DIVISION
MORRISTOWN, TENNESSEE

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 September 7, 2012 on behalf of workers of Vacumet
Corporation, Paper Division, Morristown, Tennessee (Vacumet
Corporation). The workers' firm is engaged in activities
related to the production of metallized paper, general label
paper and pressure sensitive paper. Workers are not separately
identifiable by product.
The petitioners alleged that upon the recent purchase of
the subject firm by AR Metallizing, a company based in
Belgium, production for foreign customers was shifted back to
Europe which caused overcapacity in the U.S. facilities and
the closure of the subject firm, which resulted in the subject
worker separations.
During the course of the investigation, information was
collected from the workers' firm and major declining
customers.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that the firm did not import metallized
paper, general label paper and pressure sensitive paper or
articles like or directly competitive with the articles
produced by Vacumet Corporation. The Department surveyed a
sample of the subject firm's major declining customers for
metallized paper, general label paper and pressure sensitive
paper during the period when sales and production were
declining. The survey revealed that customers did not increase
their reliance on imported metallized paper, general label
paper and pressure sensitive paper while reducing their
purchases of metallized paper, general label paper and
pressure sensitive paper from the subject firm. The Department
also conducted second-tier surveys regarding purchases of
finished products containing metallized paper, general label
paper and pressure sensitive paper. The survey did not reveal
any imports of laminated label paper or labels. Worker
separations at the subject firm were most likely caused by the
domestic consolidation of the subject firm with the Vacumet
Corporation facility in Franklin, Massachusetts.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the
production of metallized paper, general label paper and
pressure sensitive paper or a like or directly competitive
article to a foreign country or acquire metallized paper,
general label paper and pressure sensitive paper 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 Vacumet Corporation 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 Vacumet Corporation 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. § 22a).
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 Vacumet
Corporation, Paper Division, Morristown, Tennessee engaged in
activities related to the production of metallized paper,
general label paper and pressure sensitive paper to apply for
adjustment assistance, in accordance with Section 223 of the
Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 20th day of November, 2012.


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