DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-82,156

JOHNSTOWN SPECIALTY CASTINGS, INC.
A SUBSIDIARY OF WHEMCO
JOHNSTOWN, PENNSYLVANIA


Notice of Negative Determination
on Reconsideration

The initial investigation, initiated on February 8, 2012, on
behalf of workers of Johnstown Specialty Castings, Inc., a
subsidiary of WHEMCO, Johnstown, Pennsylvania (subject firm)
resulted in a negative determination, issued on January 8, 2013. The
Department’s notice of negative determination was published in the
Federal Register on February 6, 2013 (78 FR 8591).
The group eligibility requirements for workers of a Firm
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), can be
satisfied if the following criteria are met:
(1) a significant number or proportion of the workers in such
workers’ firm have become totally or partially separated, or are
threatened to become totally or partially separated; and

(2)(A)(i) the sales or production, or both, of such firm have
decreased absolutely;

(ii)(I) imports of articles or services like or directly
competitive with articles produced or services supplied
by such firm have increased;

(II) imports of articles like or directly
competitive with articles—
(aa) into which one or more component parts produced
by such firm are directly incorporated, or
(bb) which are produced directly using services
supplied by such firm,
have increased; or

(III) imports of articles directly incorporating one
or more component parts produced outside the United
States that are like or directly competitive with
imports of articles incorporating one or more
component parts produced by such firm have increased;
and

(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; or

(B)(i)(I) there has been a shift by such workers’ firm to a
foreign country in the production of articles or the supply of
services like or directly competitive with articles which are
produced or services which are supplied by such firm; or

(II) such workers’ firm has acquired from a foreign
country articles or services that are like or
directly competitive with articles which are produced
or services which are supplied by such 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.

Initial investigation
The initial investigation began when a representative from
United Steelworkers, Local 2632, filed a petition for Trade
Adjustment Assistance (TAA), dated November 6, 2012, on behalf of
workers and former workers of the subject firm. The workers are
engaged in employment related to the production of steel castings,
slag pots, steel rolls, steel sleeves, and mill liners.
The negative determination was based on the findings that there
was less than a significant number or proportion of worker
separations at the subject firm during the relevant time period
(November 2011 through October 2012).
Reconsideration investigation
By application dated February 2, 2013, the petitioner requested
administrative reconsideration of the Department's negative
determination regarding the eligibility of the subject worker group
to apply for adjustment assistance.
In the request for reconsideration, the petitioner stated that
“When (the petition was) filed . . . temporary layoffs had just
started . . . On January 23, 2013, Whemco . . . sent a WARN notice
letter . . . stating new layoffs will begin March 4, 2013 . . . .”
On February 25, 2013, the Department issued a Notice of
Affirmative Determination Regarding Application for Reconsideration
in order to conduct further investigation to determine worker
eligibility. The Department’s Notice was published in the Federal
Register on March 8, 2013 (78 FR 15048).
In the course of the reconsideration investigation, the
Department carefully reviewed previously-submitted information and
collected additional information from the subject firm to address the
petitioner’s allegation.
According to 29 CFR 90.2, Layoff means a suspension from pay
status for lack of work initiated by the employer and expected to
last for no less than seven (7) consecutive calendar days;
Significant number or proportion of the workers means that a) in most
cases the total or partial separations, or both, in a firm or
appropriate subdivision thereof, are the equivalent to a total
unemployment of five percent (5 percent) of the workers or 50
workers, whichever is less; or b) at least three workers in a firm
(or appropriate subdivision thereof) with a work force of fewer than
50 workers would ordinarily have to be affected; and Threatened to
begin means, in the context of impending total or partial
separations, the date on which it could reasonably be predicted that
separations were imminent.
The information collected on reconsideration confirmed that,
during the relevant time period, there were no layoffs, or a threat
of layoffs, at the subject firm. Therefore, Section 222(a)(1) has
not been met because a significant number or proportion of the
workers at the subject firm did not become totally separated or
partially separated during the period under investigation.
CONCLUSION
After careful review of the Trade Act of 1974, as amended,
applicable regulation, and information obtained during the initial
and reconsideration investigations, I determine that workers and
former workers of Johnstown Specialty Castings, Inc., a subsidiary
of WHEMCO, Johnstown, Pennsylvania, are ineligible to apply for
adjustment assistance.
Signed in Washington, D.C., on this 3rd day of April, 2013
/s/ Del Min Amy Chen
_______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-82,156

JOHNSTOWN SPECIALTY CASTINGS, INC.
A SUBSIDIARY OF WHEMCO
JOHNSTOWN, 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 November 14, 2012 by the United Steelworkers of American, Local
2632 on behalf of workers of Johnstown Specialty Castings Inc., a
subsidiary of WHEMCO, Johnstown, Pennsylvania. The workers’ firm is
engaged in activities related to the production of steel castings,
slag pots, steel rolls, steel sleeves and mill liners.
Workers of Johnstown Specialty Castings Inc. were previously
certified eligible to apply for adjustment assistance under
petition number TA-W-71,376. That certification expired on March
25, 2012.
The petitioner alleged that low cost foreign competition has
contributed to worker separations. In addition, the petitioner
stated that the subject firm is a supplier to TAA-certified
customers.
During the course of the investigation, information was
collected from the workers’ firm.
With respect to Section 222(a) and Section 222(b) of the Act,
the investigation revealed that Criterion (1) has not been met
because a significant number or proportion of the workers in the
workers’ firm have not become totally or partially separated, and are
not threatened to become totally or partially separated. Under the
program regulations at 29 CFR Part 90.2, “partial separation” means
that the workers’ hours and wages have been reduced to 80 percent or
less of the workers’ average weekly hours and wages. The
investigation confirmed that the workers’ furloughs do not meet the
regulatory definition of partial separation.
Finally, the group eligibility requirements under Section 222(e)
of the Act, have not been satisfied because the workers’ firm has not
been publicly 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 Johnstown Specialty Castings Inc., a
subsidiary of WHEMCO, Johnstown, Pennsylvania engaged in activities
related to the production of steel castings, slag pots, steel rolls,
steel sleeves and mill liners to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 8th day of January, 2013

/s/ Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance
4510-FN-P





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