Petitioner Type: Company
Impact Date:
Filed Date: 08/12/2019
Most Recent Update: 03/30/2020
Determination Date: 10/23/2019
Expiration Date:
Employment and Training Administration
TA-W-95,061
UNITED STEELWORKERS LOCAL 8-676
WESTERNPORT, MARYLAND
Notice of Negative Determination
on Reconsideration
On December 20, 2019, the Department of Labor issued an
Affirmative Determination Regarding Application for Reconsideration
applicable to workers and former workers of United Steelworkers
Local 8-676, Westernport, Maryland (USW Local 8-676). The
workers’ firm is engaged in activities related to the supply of
bargaining unit representation services; specifically, USW Local
8-676 supplies representation services to the employees at Verso,
Luke, Maryland. The subject worker group does not include any
on-site leased workers.
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 initial investigation resulted in a negative determination
based on the Department’s findings that USW Local 8-676 has not
imported bargaining unit representation services, or any like or
directly competitive services, from a foreign country; that USW
Local 8-676 did not shift the supply of bargaining unit
representation services, or a like or directly competitive
service, to a foreign country or acquire the supply of bargaining
unit representation services, or a like or directly competitive
service, from a foreign country; that USW Local 8-676 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); that USW Local 8-676 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); and that the group eligibility
requirements under Section 222(e) of the Act, have not been
satisfied because USW Local 8-676 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.
The request for reconsideration includes new information and
allegations USW Local 8-676 is 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).
For the Department to issue a 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
term “Supplier” as “a firm that produces and supplies directly to
another firm component parts for articles, or services used in the
production of articles or in the supply of services, as the case
may be, that were the basis for a certification of eligibility
under subsection (a) [of Section 222 of the Act] of a group of
workers employed by such other firm.”
Based on a careful review of previously-submitted information,
information provided in the request for reconsideration, and
information obtained during the reconsideration investigation, the
Department determines that the subject firm does not meet the
requirements of a “Supplier” as described Section 222(c) of the
Act, 19 U.S.C. § 2272(c). USW Local 8-676 does not supply services
to a firm; rather, USW Local 8-676 supplied services directly to
employees of a firm and not directly to a firm, as required by
Section 222(c) of the Act, 19 U.S.C. § 2272(c).
Based on a careful review of previously-submitted information,
information provided in the request for reconsideration, and
information obtained during the reconsideration investigation, the
Department determines that the petitioning worker group has not met
the requirements of Section 222 of the Act, 19 U.S.C. § 2272.
Conclusion
After careful reconsideration, I determine that the
requirements of Section 222 of the Act, 19 U.S.C. § 2272, have not
been met and affirm the original notice of negative determination
of eligibility to apply for worker adjustment assistance for
workers and former workers of United Steelworkers Local 8-676,
Westernport, Maryland, to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. on this 30th day of March, 2020
/s/Del-Min Amy Chen
_______________________________
DEL-MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-95,061
UNITED STEELWORKERS LOCAL 8-676
WESTERNPORT, MARYLAND
Notice of Affirmative Determination
Regarding Application for Reconsideration
By application dated December 13, 2019, the United
Steelworkers (USW) Local 8-676 requested administrative
reconsideration of the negative determination regarding workers’
eligibility to apply for worker adjustment assistance applicable to
workers and former workers of United Steelworkers Local 8-676,
Westernport, Maryland (“USW Local 8-676”). The workers’ firm is
engaged in activities related to the supply of bargaining unit
representation services.
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 the worker’s firm has not imported
bargaining unit representation services, or any like or directly
competitive services, from a foreign country; that the worker’s
firm did not shift the supply of bargaining unit representation
services, or a like or directly competitive service, to a foreign
country or acquire the supply of bargaining unit representation
services, or a like or directly competitive service, from a
foreign country; that the worker’s 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); that the worker’s 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); and that the group eligibility requirements under
Section 222(e) of the Act, have not been satisfied because 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.
The request for reconsideration includes new information
and allegation regarding the workers’ firm as 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 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, as amended.
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 20th day of December, 2019
/s/ Del-Min Amy Chen
_______________________________
DEL-MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-95,061
UNITED STEELWORKERS LOCAL 8-676
WESTERNPORT, MARYLAND
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 August 12, 2019, by the United Steelworkers (USW)
Local 8-676 on behalf of workers of United Steelworkers Local
8-676, Westernport, Maryland ("USW Local 8-676"). The workers'
firm is engaged in activities related to the supply of
bargaining unit representation services.
The petitioner provided the following allegation: "The
local union exists only to represent workers from the Verso Luke
Mill which ceased operation on June 30, 2019. The employees at
the mill have already been certified under petition TA-W-94,771
on June 25, 2019." The staff of USW Local 8-676 are not
considered to be employees of Verso Luke LLC.
During the course of the investigation, information was
collected from the petitioner and the workers' firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that USW Local 8-676 has not imported
bargaining unit representation services or any like or
directly competitive services.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
bargaining unit representation services or a like or directly
competitive service to a foreign country or acquire bargaining
unit representation services or a like or directly competitive
service from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that USW Local 8-676 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). Section 222(c)(4) of the Act defines the term
"Supplier" as "a firm that produces and supplies directly to
another firm component parts for articles, or services used in
the production of articles or in the supply of services, as the
case may be, that were the basis for a certification of
eligibility under subsection (a) [of Section 222 of the Act] of
a group of workers employed by such other firm." Services
supplied by the USW Local 8-676 were not utilized in the
production of an article or supply of a services.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that USW Local 8-676 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). Section 222(c)(3) of the Act
defines the term "Downstream Producer" as "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 subsection (a) [of Section 222 of the Act]" and
defines the term "value-added production processes or services"
to include "final assembly, finishing, testing, packaging, or
maintenance or transportation services." USW Local 8-676 did
not perform value-added production processes or services.
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 workers of United
Steelworkers Local 8-676, Westernport, Maryland, engaged in
activities related to the supply of bargaining unit
representation services to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 23rd day of October 2019.
/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance