DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,896

SAFCO PRODUCTS, CO.
619 AND 705 NORTH COMMERCE STREET
A SUBSIDIARY OF LIBERTY DIVERSIFIED INTERNATIONAL, INC.
INCLUDING ON-SITE LEASED WORKERS FROM
LOCATE, SEEK, AND STAFFMARK
SHEBOYGAN, WISCONSIN

TA-W-93,896A

SAFCO PRODUCTS, CO.
1213A-1310 PENNSYLVANIA AVENUE
A SUBSIDIARY OF LIBERTY DIVERSIFIED INTERNATIONAL, INC.
INCLUDING ON-SITE LEASED WORKERS FROM
LOCATE, SEEK, AND STAFFMARK
SHEBOYGAN, WISCONSIN

TA-W-93,896B

SAFCO PRODUCTS, CO.
4350 TOWER DRIVE
A SUBSIDIARY OF LIBERTY DIVERSIFIED INTERNATIONAL, INC.
INCLUDING ON-SITE LEASED WORKERS FROM
LOCATE, SEEK, AND STAFFMARK
SHEBOYGAN, WISCONSIN

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 June 15, 2018 by a union official from the
International Union of Electronic, Electrical, Salaried, Machine
and Furniture Workers - Communications Workers of America (IUE-
CWA), Local 800 on behalf of workers of Safco Products Co., a
subsidiary of Liberty Diversified International, Inc., including
on-site leased workers from Locate, SEEK, and Staffmark,
Sheboygan, Wisconsin. The workers' firm is engaged in
activities related to the production of office furniture and
related components. The worker group consists of workers at
three different facilities in Sheboygan, Wisconsin: 619 and 705
North Commerce Street (TA-W-93,896) engaged in office and
administrative tasks as well as occasional manufacturing and
assembly work; 1213A - 1310 Pennsylvania Avenue (TA-W-93,896A)
engaged in manufacturing/production work; and 4350 Tower Drive
(TA-W-93,896B) engaged in warehousing activities and assembly
work.
The petitioner alleges that increased imports of
components and case goods is a factor in this pending plant
closure.
During the course of the investigation, information was
collected from the petitioner, the workers' firm, and the
major declining customer(s) of the workers' firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports of articles like or
directly competitive with the articles produced by Safco
Products Co. have not increased. The subject firm reported a
decline of imports during the period relevant to the
investigation. According to the Code of Federal Regulations,
29 C.F.R. 90.2, increased imports means that imports have
increased either absolutely or relative to domestic production
compared to a representative base period. The representative
base period shall be one year consisting of the four quarters
immediately preceding the date which is twelve months prior to
the date of the petition. Imports declined comparing the
period of May 2018 through June 2017 to May 2017 through June
2016. In addition, the major declining customer(s) of the
workers' firm did not report imports of office furniture and/or
related components during the aforementioned periods.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the
production of office furniture or related components or a like
or directly competitive article to a foreign country or
acquire office furniture or related components or a like or
directly competitive article from a foreign country. Safco
Products Co. shifted the production from its Sheboygan
facilities to a manufacturing facility in the city of Milford
in Iowa.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Safco Products Co. 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Safco Products Co. 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).
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 Safco Products Co.,
619 and 705 North Commerce Street, a subsidiary of Liberty
Diversified International, Inc. including on-site leased workers
from Locate, SEEK, and Staffmark, Sheboygan, Wisconsin (TA-W-
93,896); Safco Products Co., 1213A - 1310 Pennsylvania Avenue,
a subsidiary of Liberty Diversified International, Inc.
including on-site leased workers from Locate, SEEK, and
Staffmark, Sheboygan, Wisconsin (TA-W-93,896A); and Safco
Products Co., 4350 Tower Drive, a subsidiary of Liberty
Diversified International, Inc. including on-site leased workers
from Locate, SEEK, and Staffmark, Sheboygan, Wisconsin (TA-W-
93,896B) engaged in activities related to the production of
office furniture and related components to apply for adjustment
assistance, in accordance with Section 223 of the Act, 19 U.S.C.
§ 2273.
Signed in Washington, D.C. this 4th day of January 2019.

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