Denied
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TAW-85371  /  Contacts Metals and Welding, Inc. (Indianapolis, IN)

Petitioner Type: Union
Impact Date:
Filed Date: 06/12/2014
Most Recent Update: 03/29/2016
Determination Date: 08/28/2014
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,371

CONTACTS METALS AND WELDING, INC.
INDIANAPOLIS, INDIANA

Notice of Negative Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the Trade
Preferences Extension Act of 2015, Public Law No. 114-27, section
405(a)(1)(A), the investigation into this petition was reopened for a
reconsideration investigation to apply the requirements for worker
group eligibility under chapter 2 of title II of the Trade Act of
1974, as amended by the TAARA 2015, to the facts of this petition
(statutory reconsideration).
The initial investigation, initiated on June 12, 2014, resulted
in a negative determination, issued on August 28, 2014, that was
based on the findings of no import increases of like or directly
competitive articles and no shift of production abroad. The
determination was applicable to workers and former workers of
Contacts Metals and Welding, Inc., Indianapolis, Indiana (Contacts
Metals and Welding). The workers’ firm is engaged in activities
related to the production of resistance welding consumables and
accessories.
On November 18, 2014, the Department issued a Notice of
Affirmative Determination Regarding Application for Reconsideration,
pursuant to 29 CFR 90.18(d). Because the regulatory reconsideration
investigation was not concluded prior to the requirement of statutory
reconsideration, the Department did not issue a determination on
regulatory reconsideration.
Based on information reviewed during the reconsideration
investigation, the Department determines that the requirements for
certification have not been met.
Although BGA Management, LCC (d/b/a Alliance Management) is
the Court-appointed receiver and Tuffaloy Products, Inc. purchased
the rights to sell articles under the Contracts Metal and
Welding/CMW brand, neither is a successor-in-interest firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
Department cannot find increased imports of resistance welding
consumables and accessories, or like or directly competitive
articles, during the twelve month period prior to the petition date
(June 11, 2014).
With respect to Section 222(a)(2)(B) of the Act, the Department
cannot find that Contacts Metals and Welding shifted the production
of resistance welding consumables and accessories or a like or
directly competitive article to a foreign country or acquired such
production from a foreign country.
With respect to Section 222(b)(2) of the Act, the Department
cannot find that Contacts Metals and Welding 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).
Finally, the group eligibility requirements under Section 222(e)
of the Act, have not been satisfied because Criterion (1) has not
been met since 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, 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 Contacts Metals
and Welding, Inc., Indianapolis, Indiana, to apply for adjustment
assistance, in accordance with Section 223 of the Act, 19 U.S.C. §
2273.
Signed in Washington, D.C. this 29th day of March, 2016


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





U.S. DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,371

CONTACTS METALS AND WELDING, INC.
INDIANAPOLIS, INDIANA

Notice of Affirmative Determination
Regarding Application for Reconsideration

By application dated October 10, 2014, the IUE-CWA, Local 84001, requested administrative reconsideration of the negative determination regarding workers’ eligibility to apply for Trade Adjustment Assistance (TAA) applicable to workers and former workers of Contacts Metals and Welding, Inc., Indianapolis, Indiana (subject firm). The determination was issued on August 28, 2014. The Department’s Notice of determination was published in the Federal Register on September 11, 2014 (79 FR 54298). Workers at the subject firm were engaged in activities related to the production of resistance welding consumables and accessories, such as welding tips and holders.
The negative determination was based on the Department’s findings that during the course of the investigation, the Department received information which establishes that BGA Management, LCC (doing business as Alliance Management) is the Court-appointed receiver for CMW International, LLC; that CMW International, LLC is the successor-in-interest to CMW International, Inc.; that the afore-mentioned entities have the same address as Contacts Metals and Welding, Inc.; that the Court-appointed receiver was authorized to sell assets, including the right to sell products under the Contacts Metals and Welding, Inc./CMW brand; and that the entity(s) selling products under the CMW brand are not successor-in-interest to either CMW International, LLC, CMW International, Inc., or Contacts Metals and Welding, Inc.
With respect to Section 222(a)(2)(B) of the Act, the Department did not receive information that Contacts Metals and Welding, Inc. shifted production of resistance welding consumables and accessories, or like or directly competitive articles, to a foreign country.
With respect to Section 222(a)(2)(A)(ii), the Department did not receive information that imports of articles like or directly competitive with the resistance welding consumables and accessories produced by Contacts Metals and Welding, Inc. increased during the relevant period.
With respect to Section 222(b)(2) of the Act, the Department did not receive information that Contacts Metals and Welding, Inc. was 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), based on an increase in imports from, or a shift in production to, Canada or Mexico.
The request for reconsideration states “The Union has, since the negative determination, been reaching out to secure better contact information . . . We are submitting that information so that a more comprehensive re-investigation can be conducted.” The request for reconsideration also alleged that production shifted to various foreign countries including Mexico, Canada, Germany, and China. In addition, the request for reconsideration included contact information for a union representative and several former company officials to assist with the reconsideration.
The Department has carefully reviewed the request for reconsideration and the existing record, and will conduct further investigation to determine if the workers meet 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 18th day of November, 2014

/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-85,371

CONTACTS METALS AND WELDING, INC.
INDIANAPOLIS, INDIANA

Negative Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance
And Alternative Trade 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) and
(b) of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). 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. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such 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 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase 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 subdivision.
(B) Shift in Production Path:
(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and
(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a
free trade agreement with the United States;
(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase
in imports of articles that are like or directly
competitive with articles which are or were produced
by such firm or subdivision.

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 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."
The investigation was initiated in response to a petition
filed on June 12, 2014 on behalf of workers of Contacts Metals
and Welding, Inc., Indianapolis, Indiana (subject firm). The
subject firm produced resistance welding consumables and
accessories, such as welding tips and holders.
The petition states that "Competition from South Korea and
Canada on Welding tips and holders, competition from China on
heaving metals and Tungsten-based parts, production moved out
of country by competitor on some of our parts."
During the course of the investigation, the Department
contacted the petitioner and requested, but did not receive,
additional information.
During the course of the investigation, the Department
received information which establishes that BGA Management,
LCC (doing business as Alliance Management) is the Court-
appointed receiver for CMW International, LLC; that CMW
International, LLC is the successor-in-interest to CMW
International, Inc.; that the afore-mentioned entities have
the same address as Contacts Metals and Welding, Inc.; that
the Court-appointed receiver was authorized to sell assets,
including the right sell products under the Contacts Metals
and Welding, Inc./CMW brand; and that the entity(s) selling
products under the CMW brand are not successor-in-interest to
either CMW International, LLC, CMW International, Inc., or
Contacts Metals and Welding, Inc.
With respect to Section 222(a)(2)(B) of the Act, the
Department did not receive information that Contacts Metals and
Welding, Inc. shifted production of resistance welding
consumables and accessories, or like or directly competitive
articles, to a foreign country.
With respect to Section 222(a)(2)(A)(ii), the Department
did not receive information that imports of articles like or
directly competitive with the resistance welding consumables
and accessories produced by Contacts Metals and Welding, Inc.
increased during the relevant period.
With respect to Section 222(b)(2) of the Act, the
Department did not receive information that Contacts Metals
and Welding, Inc. was a Supplier to, or act as a Downstream
Producer for, 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), based on an increase in imports from, or a shift in
production to, Canada or Mexico.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
trade adjustment assistance (TAA). Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Contacts Metals
and Welding, Inc., Indianapolis, Indiana, are denied eligibility
to apply for adjustment assistance under Section 223 of the
Trade Act of 1974, as amended, and are also denied eligibility
to apply for alternative trade adjustment assistance under
Section 246 of the Trade Act of 1974, amended.

Signed in Washington, D.C. this 28th day of August 2014.

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