Denied
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TAW-86057  /  Fairmount Santrol (Perryville, MO)

Petitioner Type: State
Impact Date:
Filed Date: 06/03/2015
Most Recent Update: 03/31/2016
Determination Date: 03/31/2016
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-86,057

FAIRMOUNT SANTROL
F/K/A FML SAND, INC.
BREWER MINE
INCLUDING ON-SITE LEASED WORKERS FROM MANPOWER
PERRYVILLE, MISSOURI

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) 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 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 3, 2015 by a state workforce office on behalf of
workers of the workers at Fairmount Santrol, f/k/a FML Sand,
Inc., Brewer Mine, including on-site leased workers from
Manpower, Perryville, Missouri (Fairmount Santrol). The
workers' firm is engaged in activities related to the production
of sand products for the hydraulic fracturing industry.
The petitioner alleges that, "Due to the rapid downturn in
the oil/gas market, companies . . . quit ordering the product
from Fairmount Santrol. Employees . . . were told these
companies found it was cheaper to import oil from other
countries rather than drill in the United States."
During the course of the investigation, information was
collected from the workers' firm, the petitioner, and public
sources.
With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that Fairmount Santrol has not
experienced a decline in sales or production of sand products in
2014 from 2013 levels and during January-April 2015 from the
corresponding period in 2014.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Fairmount Santrol did not shift
production of sand products, or like or directly competitive
articles, to a foreign country or acquire such production from a
foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Fairmount Santrol is not a
Supplier or a 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 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 Fairmount Santrol,
f/k/a FML Sand, Inc., Brewer Mine, including on-site leased
workers from Manpower, Perryville, Missouri, to apply for
adjustment assistance, in accordance with Section 223 of the
Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 31st day of March 2016.
/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance