U.S. DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-95,259

NORCRAFT COMPANIES L.P.
A SUBSIDIARY OF FORTUNE BRANDS HOME & SECURITY INC.
INCLUDING ON-SITE LEASED WORKER FROM MANPOWER
LYNCHBURG, VIRGINIA

Notice of Affirmative Determination
Regarding Application for Reconsideration

By application dated December 20, 2019, the Department of
Labor received a request for administrative reconsideration of the
negative determination regarding workers’ eligibility to apply for
worker adjustment assistance applicable to workers and former
workers of Norcraft Companies L.P., a subsidiary of Fortune
Brands Home & Security, Inc., including on-site leased workers
from Manpower, Lynchburg, Virginia (subject firm). The
determination was issued on October 31, 2019 and the Department’s
Notice of Determination was published in the Federal Register on
November 25, 2019 (84 FR 64929).
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 request for reconsideration asserts that sales and/or
production at the subject firm declined during the relevant period
and imports of like or directly competitive articles contributed
importantly to sales/production declines and worker separations at
the subject firm.
The Department 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 4th day of February, 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-95,259

NORCRAFT COMPANIES L.P.
A SUBSIDIARY OF FORTUNE BRANDS HOME & SECURITY INC.
INCLUDING ON-SITE LEASED WORKER FROM MANPOWER
LYNCHBURG, VIRGINIA

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 (ITC) 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 October 7, 2019 by a State Workforce Office on behalf
of workers of Norcraft Companies L.P., a subsidiary of Fortune
Brands Home & Security, Inc., Lynchburg, Virginia (Norcraft).
The workers' firm is engaged in activities related to the
production of kitchen and bath cabinetry.
The subject worker groups included on-site leased workers
from Manpower.
The petition states "Imports of kitchen cabinets from
China, Vietnam and other foreign countries have resulted in
decreased sales, elimination of 3rd shift and job loss at the
Lynchburg Norcraft plant. Norcraft's parent company, Masterbrand
Cabinets Inc., was a member of the American Kitchen Cabinet
Alliance which filed a petition with the International Trade
Commission against imports of wooden cabinets and vanities from
China. In April 2019 the ITC issued a preliminary decision that
there 'is a reasonable indication that an industry in the United
States is materially injured by reason of imports of wooden
cabinets and vanities from China. [Investigation Nos. 701-TA-620
and 731-TA-1445, Preliminary, Wooden Cabinets and Vanities]. In
addition the Lynchburg Norcraft plant uses hardwood and
engineered wood in cabinet construction and the worker group may
be subject to injury based on notification USDOL/ITC
Investigation Nos. 701-TA-565 and 731-TA-1341, Hardwood Plywood
from China."
During the course of the investigation, information was
collected from the petitioner and workers' firm.
With respect to Section 222(a)(2)(A) of the Act, the
investigation revealed that that Norcraft sales and production
have either increased or remained stable and the firm's imports
of kitchen and bath cabinetry have not increased during the
relevant period.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Norcraft did not shift the
production of kitchen and bath cabinetry, or a like or directly
competitive article, to a foreign country or acquire the
production of kitchen and bath cabinetry, or a like or
directly competitive article, from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Norcraft 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 Norcraft 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 because Criterion (1)
has not been met since the workers' firm has not been publicly
identified by name by the ITC 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. A preliminary decision by the ITC is not a qualifying
finding, for purposes of the Trade Act.
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 Norcraft Companies
L.P., a subsidiary of Fortune Brands Home & Security, Inc.,
including on-site leased workers from Manpower, Lynchburg,
Virginia, 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 October 2019.

/s/Del-Min Amy Chen
______________________________
DEL-MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance