[Federal Register Volume 59, Number 198 (Friday, October 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25489]


[[Page Unknown]]

[Federal Register: October 14, 1994]


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DEPARTMENT OF LABOR
[TA-W-29,927]

 

Walker Manufacturing Company, Hebron, OH; Notice of Negative 
Determination Regarding Application for Reconsideration

    By an application dated September 28, 1994, the United Auto Workers 
Union (UAW) requested administrative reconsideration of the subject 
petition for trade adjustment assistance (TAA). The denial notice was 
signed on August 15, 1994 and published in the Federal Register on 
September 2, 1994 (59 FR 45711).
    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 investigation findings show that the workers produce auto 
exhaust systems and that the plant will be closed by the end of 1994.
    The union claims that the Department should have used Custom data 
on U.S. imports to supplement its customer survey. A review of the 
Department's investigation shows that Custom data on imports was used. 
U.S. imports of mufflers and exhaust pipes declined absolutely in 1993 
compared to 1992 and in the latest 12-month period from June through 
May 1993-1994 compared to the same period in 1992-1993.
    In order for a worker group to be certified eligible to apply for 
TAA, it must meet all three of the Worker Group Eligibility 
Requirements of the Trade Act--(1) a significant decrease in 
employment, (2) an absolute decrease in sales or production and (3) an 
increase of imports that are like or directly competitive with those 
produced by the petitioning workers' firm and these increased imports 
must have ``contributed importantly'' to worker separations and 
decreased sales or production at the workers' firm. The worker group 
cannot be certified eligible to apply for TAA if any one of the worker 
group criteria are not met in the relevant period.
    The ``contributed importantly'' test is generally demonstrated 
through a survey of the workers' firm's customers. The Department's 
survey of Hebron's customers shows that they did not decrease their 
purchases from Hebron and increase their imports in the relevant 
period.
    The union states that machinery from the Hebron plant is being 
shipped to a plant in Mexico. New findings on reconsideration show that 
as a result of the Hebron closure, the company is making its excess 
machinery available to other corporate North American plants including 
the one in Mexico. Certification under the Trade Act is based upon 
increased imports of like or directly competitive articles with those 
produced at the workers' firm. Machinery associated with the production 
of exhaust systems is not like or directly competitive with exhaust 
systems.
    Other findings on reconsideration show that the Mexican plant 
produces exhaust systems only for the Mexican market. The Hebron plant 
produces exhaust systems only for a major domestic original equipment 
manufacturer (OEM).
    Other findings on reconsideration show that no production was 
transferred to Mexico as a result of the closure of the Hebron plant. 
Only the production of resonator bodies was transferred to Canada; 
however, this accounted for only a very small portion of Hebron's total 
production and the workers were not separately identifiable by product. 
The Hebron closing is the result of capacity issues within Walker 
Manufacturing in North America.

Conclusion

    After review of the application and investigative findings, I 
conclude that there has been no error or misinterpretation of the law 
or of the facts which would justify reconsideration of the Department 
of Labor's prior decision. Accordingly, the application is denied.

    Signed at Washington, D.C., this 5th day of October 1994.
Victor J. Trunzo,
Program Director, Policy and Reemployment Services, Office of Trade 
Adjustment Assistance.
[FR Doc. 94-25489 Filed 10-13-94; 8:45 am]
BILLING CODE 4510-30-M