[Federal Register: June 4, 2002 (Volume 67, Number 107)]
[Notices]               
[Page 38526-38527]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04jn02-101]                         

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DEPARTMENT OF LABOR

Employment and Training Administration

[NAFTA-05556]

 
Alfa Laval Inc., Formerly Known as Tri-Clover, Kenosha, 
Wisconsin; Notice of Negative Determination Regarding Application for 
Reconsideration

    By application dated February 21, 2002, the International 
Association of Machinists and Aerospace Workers, Lodge 34 requested 
administrative reconsideration of the Department's negative 
determination regarding eligibility to apply for North American Free 
Trade Agreement-Transitional Adjustment Assistance (NAFTA-TAA), 
applicable to workers and former workers producing pumps and vales of 
the subject firm. The denial notice for pumps was signed on January 30, 
2002, and was published in the Federal Register on February 13, 2002 
(67 FR 6748). The denial notice for valves was signed on January 30, 
2002 and will soon be published in the Federal Register.
    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 NAFTA-TAA petition, filed on behalf of workers at Alfa Laval, 
Inc., formerly known as Tri-Clover engaged in activities related to the 
production of pumps and valves was denied because criteria (3) and (4) 
were not met. Imports from Canada or Mexico did not contribute 
importantly to workers' separations. There was no shift in production 
of valves and pumps from the subject firm to Canada or Mexico during 
the relevant period. The investigation further revealed that during 
2000, Tri-Clover was acquired by a company that also owned Alfa Laval.

[[Page 38527]]

As both companies produced similar product lines, a strategic business 
decision was made to consolidate production among multiple facilities. 
Thus declines in sales, production and employment were attributable to 
eliminating excess capacity. Plant production of valves and pumps were 
scheduled to be shifted to other domestic locations during mid-2002. Of 
note, workers producing fittings at the same location were certified 
under the same NAFTA-TAA determination (NAFTA-05556). The three groups 
of workers were separately identifiable.
    The petitioner alleges, that the workers producing valves and pumps 
and related support activities are also impacted by the planned shift 
in production of valves and pumps to Richmond, Virginia and other 
foreign countries. The company further states that the decision 
reached, regarding eligibility of workers engaged in activities related 
to the production of fittings, was based upon those jobs already being 
affected due to this area of production transferring outside the United 
States (Mexico). The petitioner further states that the shift 
(fittings) does not reflect nor include all of the jobs (valves & 
pumps) which have been or will be affected at the subject plant over 
the course of the planned shutdown of this facility.
    Since the shift in subject plant production of fittings to Mexico 
occurred during the relevant period, that worker group was certified 
eligible for NAFTA-TAA under section 250 of the Trade Act of 1974. 
Shifts in the subject plant's production of valves and pumps were 
scheduled for a future period. Unless the shift actually occurred 
during the relevant period, it is not considered relevant to the 
petition filed.
    Although workers producing fittings were certified eligible under 
NAFTA-TAA, the workers engaged in activities related to the production 
of valves and pumps are separately identifiable from the workers 
producing fittings and therefore cannot be considered eligible under 
the NAFTA-TAA certification for the workers producing fittings. That 
certification was based on a shift in subject plant production of 
fittings to Mexico during the relevant period.
    To be considered eligible for NAFTA-TAA under Criterion (4), the 
product shifted to Mexico or Canada must be like or directly 
competitive with what the subject plant worker group produced. That was 
not the current event for the workers producing valves and pumps at the 
subject plant.
    The petitioner further states that in relation to bumping ``it is 
difficult, if not impossible, to identify the exact employees who will 
be affected as product is transitioned out of the facility.''
    Workers engaged in the production of fittings including support 
activities related to the production of fittings are eligible to apply 
for NAFTA-TAA benefits. The Wisconsin Department of Workforce 
Development follows guidelines in making the final decision of 
individual eligibility for the NAFTA-TAA worker group engaged in the 
production of fittings and related support activities. The workers 
terminated producing valves and pumps, if they are bumped by a worker 
producing fittings, are eligible to apply for NAFTA-TAA under NAFTA-
05556.

Conclusion

    After review of the application for reconsideration 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 decisions. 
Accordingly, the application is denied.

    Signed at Washington, DC this 6th day of May 2002.
Edward A. Tomchick,
Director, Division of Trade Adjustment Assistance.
[FR Doc. 02-13948 Filed 6-3-02; 8:45 am]
BILLING CODE 4510-30-P