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TAW-85505  /  Red Shield Acquisition (Old Town, ME)

Petitioner Type: Union
Impact Date: 08/25/2013
Filed Date: 08/26/2014
Most Recent Update: 03/30/2016
Determination Date: 03/30/2016
Expiration Date: 03/30/2018

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,505

RED SHIELD ACQUISITION
D/B/A OLD TOWN FUEL AND FIBER
OLD TOWN, MAINE

Notice of Revised 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 August 26, 2014, resulted
in a negative determination, issued on September 23, 2014. The
determination was applicable to workers and former workers of Red
Shield Acquisition, d/b/a Old Town Fuel and Fiber, Old Town,
Maine (Red Shield Acquisition).
The Department of Labor issued a certification for this
worker group on December 5, 2015, (TA-W-91,008). The impact date
for TA-W-91,008 is September 30, 2014. As such, the termination
date for TA-W-85,505 will be September 29, 2014.

A negative determination on the application of regulatory
reconsideration was issued on October 21, 2014 based on the fact
that the worker group criteria have not been met. The petitioner
did not supply facts not previously considered and did not provide
additional documentation indicating that there was either a mistake
in the determination of facts not previously considered or a
misinterpretation of facts, or of the law justifying
reconsideration of the initial determination. As such, the
Department determined that 29 CFR 90.18(c) has not been met.
The workers’ firm is engaged in activities related to the
production of bleached hardwood kraft pulp.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determined that the
requirements for certification have been met.
Section 222(a)(1) has been met because 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.
Section 222(a)(2)(A)(i) has been met because the sales
and/or production of bleached hardwood kraft pulp produced by Red
Shield Acquisition have decreased absolutely.
Section 222(a)(2)(A)(ii) has been met because customer
imports of articles like or directly competitive with the
articles produced by Red Shield Acquisition have increased.
Finally, Section 222(a)(2)(A)(iii) has been met because
increased customer imports contributed importantly to the worker
group separations and sales/production declines at Red Shield
Acquisition.

Conclusion
After careful review, I determine that workers of Red Shield
Acquisition, d/b/a Old Town Fuel and Fiber, Old Town, Maine, who
are engaged in activities related to production of bleached
hardwood kraft pulp, meet the worker group certification criteria
under Section 222(a) of the Act, 19 U.S.C. § 2272(a). In
accordance with Section 223 of the Act, 19 U.S.C. § 2273, I make
the following certification:

"All workers of Red Shield Acquisition, d/b/a Old Town Fuel
and Fiber, Old Town, Maine who became totally or partially
separated from employment on or after August 25, 2013, through
September 29, 2014, and all workers in the group threatened
with total or partial separation from employment on the date
of certification through September 29, 2014, are eligible to
apply for adjustment assistance under Chapter 2 of Title II of
the Trade Act of 1974, as amended.”

Signed in Washington, D.C., this 30th day of March, 2016


/s/Jessica R. Webster
______________________________
JESSICA R.WEBSTER
Certifying Officer, Office of
Trade Adjustment Assistance




DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,505

RED SHIELD ACQUISITION
D/B/A OLD TOWN FUEL AND FIBER
OLD TOWN, MAINE


Notice of Negative Determination
Regarding Application for Reconsideration

By application dated October 3, 2014, United Steelworkers,
Local 4-0080 (USW) requested administrative reconsideration
of the Department of Labor's negative determination regarding
eligibility to apply for worker adjustment assistance,
applicable to workers and former workers of Red Shield
Acquisition, d/b/a Old Town Fuel and Fiber, Old Town, Maine
(subject firm). The determination was signed on September
23, 2014, and the Department’s Notice of determination was
published in the Federal Register on October 21, 2014
(79 FR 62972). The subject firm is engaged in the production
of bleached hardwood kraft pulp. Pursuant to 29 CFR 90.18(c)
reconsideration may be granted under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) If it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) If in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.
The negative determination was based on the Department’s
findings that the subject firm did not shift the production of
articles like or directly competitive with bleached hardwood
kraft pulp to a foreign country; that imports of articles like
or directly competitive with the bleached hardwood kraft pulp
did not contribute importantly to the workers’ separation or
threat of separation and to the decline in sales or production
of the firm; and that the subject firm is not 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). During the investigation, the
Department reviewed import data from the subject firm and its
major declining customers, and within the industry. In the request
for reconsideration, USW asserts that the majority of the kraft
pulp market is produced in foreign countries and that two of the
subject firm’s major customers use foreign-made pulp in their
paper and tissue production process.

The request for reconsideration did not supply facts not
previously considered; nor provide additional documentation
indicating that there was either 1) a mistake in the
determination of facts not previously considered or 2) a
misinterpretation of facts or of the law justifying
reconsideration of the initial determination. Based on
these findings, the Department determines that 29 CFR
90.18(c) has not been met.

Conclusion
After careful review of the application and investigative
findings, I conclude that there has been no error or
misinterpretation of the law or of the facts which would
justify reconsideration of the Department of Labor's prior
decision. Accordingly, the application is denied.

Signed in Washington, D.C., this 3rd 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-85,505

RED SHIELD ACQUISITION
D/B/A OLD TOWN FUEL AND FIBER
OLD TOWN, MAINE

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 August 26, 2014 by United Steelworkers (USW), Local 4-
80, on behalf of workers of Red Shield Acquisition, d/b/a Old
Town Fuel and Fiber, Old Town, Maine. The workers' firm is
engaged in activities related to the production of bleached
hardwood kraft pulp.
The petitioner alleged that the worker separations were
caused by increased global competition within the pulp
industry. During the course of the investigation, information
was collected from the workers' firm and the firm's greatest
declining customers.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the
production of articles like or directly competitive with
bleached hardwood kraft pulp to a foreign country.
With respect to Section 222(a)(2)(A)(iii), the
investigation revealed that imports of articles like or
directly competitive with the bleached hardwood kraft pulp did
not contribute importantly to the workers' separation or
threat of separation and to the decline in sales or production
of the firm.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Red Shield Acquisition is not 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).
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. 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 Red Shield
Acquisition, d/b/a Old Town Fuel and Fiber, Old Town, Maine
engaged in activities related to the production of bleached
hardwood kraft pulp are denied eligibility to apply for adjust-
ment 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 23rd day of September, 2014.


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