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TAW-91218  /  Mesabi Radial Tire Company (Hibbing, MN)

Petitioner Type: State
Impact Date: 12/11/2014
Filed Date: 12/14/2015
Most Recent Update: 04/11/2017
Determination Date: 04/11/2017
Expiration Date: 04/11/2019

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-91,218

MESABI RADIAL TIRE COMPANY
1801 5TH AVENUE EAST
HIBBING, MINNESOTA

Notice of Revised Determination
on Reconsideration

On July 15, 2016, the Department of Labor issued an Affirmative
Determination Regarding Application for Reconsideration for the
workers and former workers of Mesabi Radial Tire Company, 1801 5th
Avenue East, Hibbing, Minnesota (Mesabi Radial Tire Company). The
Department’s Notice of Affirmative Determination Regarding
Application for Reconsideration was published in the Federal Register
on August 23, 2016 (81 FR 57626). Mesabi Radial Tire Company sells
earthmover tires and wheel assemblies and supplies services (such as
mounting, dismounting, and repairing) related to earthmover tires and
wheel assemblies. The request for reconsideration asserts that
Mesabi Radial Tire Company is a “downstream supplier.”
During the course of the investigation, the Department obtained
additional information from Mesabi Radial Tire Company, its
customers, and public sources, and carefully reviewed legal
authorities, previously-submitted information, and new information.
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.

“Supplier” means a firm that produces or supplies directly to
another firm component parts for articles, or services, used in
the production of articles or the supply of services, that were
the basis for a certification of eligibility under Section 222(a).
“Downstream Producer” means a firm that performs additional,
value-added production processes or services directly for another
firm for articles or services with respect to which a group of
workers in such other firm has been certified under Section
222(a).
During the reconsideration investigation, the Department
confirmed that a significant proportion of the workers at Mesabi
Radial Tire Company have become totally or partially separated and
obtained information that supports the finding that Mesabi
Radial Tire Company is a service 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).
Consequently, the Department determines that Section 222(b) has
been met.
Conclusion
After careful review of the facts obtained in the investigation,
I determine that workers of Mesabi Radial Tire Company, who are
engaged in activities related to the supply of services related to
earthmover tires and wheel assemblies, 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 Mesabi Radial Tire Company, 1801 5th Avenue
East, Hibbing, Minnesota, who became totally or partially
separated from employment on or after December 11, 2014, through
two years from the date of certification, and all workers in the
group threatened with total or partial separation from
employment on the date of certification through two years from
the date of certification, 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. on this 11th day of April, 2017


/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-91,218

MESABI RADIAL TIRE COMPANY
1801 5TH AVENUE EAST
HIBBING, MINNESOTA

Notice of Affirmative Determination
Regarding Application for Reconsideration

By application dated January 29, 2016, the state workforce
office requested administrative reconsideration of the negative
determination regarding workers’ eligibility to apply for worker
adjustment assistance applicable to workers and former workers of
Mesabi Radial Tire Company, 1801 5th Avenue East, Hibbing,
Minnesota. The determination was issued on January 12, 2016.
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
misinterpretation of facts or of the law justified
reconsideration of the decision.
The initial investigation resulted in a negative determination
based on the findings that imports did not increase, and that the
workers’ firm does not import wholesale or repair services.
Further, the firm did not shift the supply of wholesale or repair
services or like or directly competitive services to a foreign
country or acquire wholesale or repair services or like or directly
competitive services from a foreign country. Further, the 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). The services supplied by the workers
firm were not used in the production of an article, iron ore. The
services supplied were used within the tools/equipment used to mine
for ore. Finally, the firm does not act as 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). The workers’ firm was not engaged in value-added
finishing processes used in the production of an article or supply
of a service.
The request for reconsideration states that this
determination is erroneous and that the subject firm should be
considered to be a downstream supplier because without their
products steel cannot be manufactured. The request also included
additional information relating to this statement.
The Department of Labor has carefully reviewed the request for
reconsideration and the existing record, and has determined that
the Department will conduct further investigation to determine if
the workers meet the eligibility requirements of the Trade Act of
1974.
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 15th day of July, 2016

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




DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-91,218

MESABI RADIAL TIRE COMPANY
1801 5TH AVENUE EAST
HIBBING, MINNESOTA

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 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 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;
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.

(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.

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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
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), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on December 11, 2015 by a state workforce office on behalf
of workers of Mesabi Radial Tire Company, 1801 5th Avenue East,
Hibbing, Minnesota. The workers' firm is engaged in activities
related to the supply of wholesale and repair services of
earthmover tires and wheel assemblies to iron mine companies.
The petitioner alleged that loss of business from certified
customers that shut down due foreign trade impact caused
downstream impact to Mesabi Radial Tire Company.
During the course of the investigation, information was
collected from the petitioner and workers' firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports did not increase. The
workers' firm does not import wholesale or repair services.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
wholesale or repair services or like or directly competitive
services to a foreign country or acquire wholesale or repair
services or like or directly competitive services from a foreign
country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Mesabi Radial Tire Company, 1801 5th
Avenue East, Hibbing, Minnesota 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).
The services supplied by the workers firm were not used in the
production of an article, iron ore. The services supplied were
used within the tools/equipment used to mine for ore.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Mesabi Radial Tire Company, 1801 5th
Avenue East, Hibbing, Minnesota does not act as 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). The workers' firm was not engaged in value-
added finishing processes used in the production of an article or
supply of a service.
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 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 Mesabi Radial Tire
Company, 1801 5th Avenue East, Hibbing, Minnesota engaged in
activities related to the supply of wholesale and repair
services of earthmover tires and wheel assemblies to iron mine
companies to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 12th day of January, 2016.

/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance