Denied
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TAW-92798  /  Jessop Steel, LLC (Washington, PA)

Petitioner Type: Workers
Impact Date:
Filed Date: 04/07/2017
Most Recent Update: 01/11/2018
Determination Date: 01/11/2018
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-92,798

JESSOP STEEL, LLC
ATI FLAT ROLLED PRODUCTS DIVISION
A WHOLLY-OWNED INDIRECT SUBSIDIARY OF
ALLEGHENY TECHNOLOGIES INCORPORATED
INCLUDING WORKERS WHOSE WAGES WERE REPORTED THRU
ALLEGHENY LUDLUM LLC AND ATI FLAT ROLLED PRODUCTS HOLDINGS LLC
WASHINGTON, 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 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 April 7, 2017 by three workers on behalf of workers of
Jessop Steel, LLC, ATI Flat Rolled Products division, a
wholly-owned indirect subsidiary of Allegheny Technologies
Incorporated, including workers whose wages were reported thru
Allegheny Ludlum LLC and ATI Flat Rolled Products Holdings
LLC, Washington, Pennsylvania (Jessop Steel, LLC). The
workers' firm is engaged in activities related to the production
of stainless steel, nickel alloy, and titanium discreet
plates.
The petitioner alleged, "The salaried workforce
reductions on April l8, 2016 of approximately one third of
FRP's salaried workforce included approximately 5 employees
from ATI's Washington P1ate Products facility located in
Washington, PA. The three petitioners on this Petition were
affected by the restructuring and right•sizing that occurred
on that date. Prior to that date Petitioners provided
processing of sales orders, accounts receivable, and
production work and other services for the manufacturing
facilities of ATI. These include other TAA certified
facilities in Brackenridge, PA; Natrona Heights, PA; Houston.
PA; and Latrobe. PA. (TAW 91251, 91801, 91451 and 91454)" "It
is the Petitioners opinion that a lack of orders at the
facilities with TAA certifications, combined with a general
reduction in orders at other ATI manufacturing facilities is
related to foreign trade and contributed to the reduction in
staff at various locations of ATI Flat Rolled Products,
including the ATI Flat Rolled Products facility located in
Washington, PA where Petitioners were employed prior to April
18, 2016."
During the course of the investigation, information was
collected from the workers' firm, the petitioner, the major
declining customer(s) of the workers' firm, and the United
States Census Bureau and the American Iron and Steel Institute.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that Jessop Steel, LLC, did not
increase imports of stainless steel, nickel alloy, or titanium
discreet plates or articles like or directly competitive with
the stainless steel, nickel alloy, or titanium discreet plates
produced by Jessop Steel, LLC. Imports were not reported in
2015, 2016, or during the period of January thru March 2017.
Furthermore, imports of finished articles incorporating
stainless steel, nickel alloy, or titanium discreet plates or
articles like or directly competitive with the stainless
steel, nickel alloy, or titanium discreet plates produced by
Jessop Steel, LLC was not reported during the aforementioned
period. A survey of Jessop Steel, LLC major declining
customer(s) regarding their purchases of stainless steel,
nickel alloy, and titanium discreet plates and articles like
or directly competitive with the stainless steel, nickel
alloy, and titanium discreet plates revealed decreased imports
during the relevant period. Furthermore, U.S. imports of
stainless steel, nickel alloy, and titanium discreet plates
and articles like or directly competitive with the stainless
steel, nickel alloy, and titanium discreet plates revealed
imports decreasing absolutely and relative to U.S. domestic
production of stainless steel, nickel alloy, and titanium
discreet plates and articles like or directly competitive with
the stainless steel, nickel alloy, and titanium discreet
plates
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the
production of stainless steel, nickel alloy, or titanium
discreet plates or like or directly competitive articles to a
foreign country or acquire stainless steel, nickel alloy, or
titanium discreet plates or like or directly competitive
articles from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Jessop Steel, LLC 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 investigation revealed that Jessop
Steel, LLC did not supply services to the affiliated locations,
mentioned in the petitioner's allegation earlier in the
document, used in their production operation.
With respect to Section 222(b)(3) of the Act, the
investigation revealed that Jessop Steel, LLC 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
investigation revealed that Jessop Steel, LLC did not supply
services, or value-added processes, to the affiliated locations,
mentioned in the petitioner's allegation earlier in the
document, used in their production operation.
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 Jessop Steel, LLC,
ATI Flat Rolled Products division, a wholly-owned indirect
subsidiary of Allegheny Technologies Incorporated, including
workers whose wages were reported thru Allegheny Ludlum LLC
and ATI Flat Rolled Products Holdings LLC, Washington,
Pennsylvania engaged in activities related to the production of
stainless steel, nickel alloy, and titanium discreet plates to
apply for adjustment assistance, in accordance with Section 223
of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 11th day of January 2018.

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