Denied
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TAW-82113  /  SGL Carbon, LLC (Saint Marys, PA)

Petitioner Type: Union
Impact Date:
Filed Date: 10/31/2012
Most Recent Update: 12/14/2012
Determination Date: 12/14/2012
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-82,113

SGL CARBON, LLC
INCLUDING LEASED ON-SITE WORKER OF REFLEX STAFFING SERVICES AND
MANPOWER
ST. MARYS, PENNSYLVANIA


Notice of Affirmative Determination
Regarding Application for Reconsideration

By application dated January 9, 2013, the International
Union of Electronic, Electrical, Salaried, Machine and Furniture
Workers/Communications Workers of America, Local 502, requested
administrative reconsideration of the negative determination
regarding workers’ eligibility to apply for Trade Adjustment
Assistance (TAA) applicable to workers and former workers of SGL
Carbon, LLC, St. Marys, Pennsylvania (subject firm). The
determination was issued on December 14, 2012. The Department’s
Notice of determination was published in the Federal Register on
January 4, 2013 (78 FR 771). The workers’ firm is engaged in
activities related to the production of graphite parts.
The initial investigation resulted in a negative
determination based on the findings that, with respect to Section
222(a)(2)(A)(i) of the Trade Act of 1974, as amended, the subject
firm has not experienced a decline in the sales or production of
graphite parts during the relevant period.
The request for reconsideration included information
regarding possible increased imports.
The Department has carefully reviewed the request for
reconsideration and the existing record, and will conduct further
investigation to clarify the subject worker group and to
determine if workers at the subject firm have met the eligibility
requirements of the Trade Act of 1974, as amended.
Conclusion
After careful review of the application, I conclude that the
claim is of sufficient weight to justify reconsideration of the
U.S. Department of Labor's prior decision. The application is,
therefore, granted.
Signed at Washington, D.C., this 25th day of February, 2013
/s/ Del Min Amy Chen
_____________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance
4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-82,113

SGL CARBON, LLC
INCLUDING LEASED ON-SITE WORKER OF REFLEX STAFFING SERVICES AND
MANPOWER
ST. MARYS, 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 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 petition
filed on October 31, 2012 by the the International Union of
Electronic, Electrical, Salaried, Machine and Furniture
Workers/Communication Workers of America Local 502 on behalf of
workers of SGL Carbon, LLC, St. Marys, Pennsylvania. The
workers’ firm is engaged in activities related to the production
of graphite parts. There are leased workers from Reflex Staffing
Services and Manpower.
The petitioners allege that a global downturn has caused the
worker separations at St. Marys, Pennsylvania.
With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that SGL Carbon, LLC has not experienced a
decline in the sales or production of graphite parts during the
relevant period under investigation. Sales and production
increases were evinced in both 2011 and in January through
October 2012.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the subject firm did not shift the
production of graphite parts to a foreign country or acquire
graphite parts from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that the subject firm 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 the subject firm 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 SGL Carbon, LLC,
including leased on-site workers of Reflex Staffing Services and
Manpower, St. Marys, Pennsylvania engaged in activities related
to the production of graphite parts to apply for adjustment
assistance, in accordance with Section 223 of the Act, 19 U.S.C.
§ 2273.
Signed in Washington, D.C. this 14th day of December, 2012


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