Former Employees of Hewlett-Packard Co. v. United States

17 Ct. Int'l Trade 31
CourtUnited States Court of International Trade
DecidedJanuary 21, 1993
DocketCourt No. 92-02-00072
StatusPublished

This text of 17 Ct. Int'l Trade 31 (Former Employees of Hewlett-Packard Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Former Employees of Hewlett-Packard Co. v. United States, 17 Ct. Int'l Trade 31 (cit 1993).

Opinion

Memorandum and Order

Goldberg, Judge:

Plaintiffs, former employees of Hewlett-Packard Company, challenge the determination of the Secretary of Labor (“Labor”) that they are ineligible for trade adjustment assistance under 19 U.S.C. § 2272(a)(1) (1988). Koh-l-Noor Rapidograph, et al., 56 Fed. Reg. 58711 (Dept Labor 1991) (Negative Eligibility Determination); Hewlett-Packard Co., Rockaway, N.J., 56 Fed. Reg. 67103 (Dept Labor 1991) (Application for Reconsideration Dismissal). This Court has jurisdiction pursuant to 19 U.S.C. § 2395 (1988) and 28 U.S.C. § 1581(d)(1) (1988).

After considering the argument of the parties and the administrative record, the court holds that the determination by Labor should be remanded. The court holds that Labor’s determination is not in accordance with the law.

Background

On October 2, 1991, a petition for certification for trade adjustment assistance (“TAA”) benefits pursuant to 19 U.S.C. § 2271 (1988) was filed with Labor by Mr. Edward E Van Pelt, a former employee of Hewlett-Packard’s plant in Rockaway, New Jersey, representing approximately thirty-four former workers in the metal fabrication shops of Hewlett-Packard’s Rockaway plant. Workers in these shops produced chassis and hardware components of the equipment manufactured by the plant. According to the petition, the anticipated date of separation of the workers was January 31, 1992.

Labor initiated an investigation with regard to the petition. On October 17,1991, Labor requested data from Hewlett-Packard for its investigation. Hewlett-Packard responded by letter dated November 1, 1991 and indicated that Hewlett-Packard had not involuntarily terminated any employees. Hewlett-Packard therefore requested that further participation by it be excused.

Based upon the results of its investigation, Labor issued its determination on November 8, 1991, denying the petition for worker certification. Labor stated that criterion (1) of section 222 of the Trade Act of 1974, 19 U.S.C. § 2272 (a)(1) (1988), was not satisfied because Hewlett-Packard had not separated workers at the Rockaway plant.

[32]*32On November 26, 1991, Mr. Van Pelt requested administrative reconsideration of Labor’s denial of TAA certification, arguing that Labor’s decision had not properly taken into account that the jobs of the employees who took the voluntary severance package were eliminated and that no jobs at comparable skill levels or pay were available within the company. Labor dismissed the application on December 11, 1991 for lack of sufficient evidence pursuant to 29 CFR § 90.18(C). Labor found that:

there were no involuntary layoffs at Rockaway. The company offered an Enhanced Early Retirement Program and a Voluntary Separation Incentive package in 1991 to the Rockaway employees. The distinguishing feature of each program was a voluntary decision to leave in return for separation benefits. No employee was involuntarily terminated and all could have continued their employment with Hewlett Packard.

This dismissal constituted a final determination for purposes of judicial review.

Petitioner filed for judicial review on February 5,1992, within 60 days from the date Labor’s decision was published in the Federal Register.

Claims

Plaintiffs contend that Labor wrongly denied certification for TAA benefits because it failed to take into account the job elimination aspect of the voluntary separations. Plaintiffs concede that the company did not separate workers without providing for alternate positions within the company. Rather, plaintiffs complain that the alternative positions provided by the company with respect to workers in the metal fabrication shops were not at comparable pay or skill levels.

Defendant argues that the workers were not severed or suspended from pay status by the company, but left voluntarily in order to take advantage of the company’s severance offer. According to defendant, all of the workers could have continued employment with the company. Consequently, plaintiffs were not “totally” or “partially” separated within the meaning of the statute and the implementing regulations.

Standard of Review

A negative determination by Labor denying certification of eligibility for TAA benefits will be upheld if it has been made in accordance with the law, and is supported by substantial evidence contained in the administrative record. See Woodrum v. Donovan, 5 CIT 191, 193, 564 F. Supp. 826, 828 (1983), aff’d sub nom. Woodrum v. United States, 2 Fed. Cir. (T) 82, 737 F.2d 1575 (1984).

Discussion

Pursuant to 19 U.S.C. §§ 2272(a) (1988), the following eligibility requirements must be met in order to qualify for TAA certification:

(a) The Secretary shall certify a group of workers (including workers in any agricultural firm or subdivision of an agricultural [33]*33firm) as eligible to apply for adjustment assistance under this part if he determines—
(1) that a significant number or proportion of the workers in such workers’ firm or an appropriate subdivision of the firm have become totally or partially separated, or threatened to become totally or partially separated,
(2) that sales or production, or both, of such firm or subdivision have decreased absolutely, and
(3) that increases of imports of articles like or directly competitive with articles produced by such workers’ firm or an appropriate subdivision thereof contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production.

19 U.S.C. § 2272(a) (1988) (emphasis added).

The question before the court is whether Labor, in deciding that plaintiffs are ineligible for TAA certification because the terminations were voluntary, properly interpreted and applied the term “separated” within the meaning of 19 U.S.C. § 2272(a)(1) (1988).

Referring to the implementing regulations issued by Labor, defendant argues that “total separation” means “the layoff or severance of an individual from a firm or an appropriate subdivision thereof.” 29 C.F.R. § 90.2 (1992).

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Related

Flora v. United States
357 U.S. 63 (Supreme Court, 1958)
Woodrum v. Donovan
564 F. Supp. 826 (Court of International Trade, 1983)
Former Employees of Parallel Petroleum Corp. v. U.S. Secretary of Labor
731 F. Supp. 524 (Court of International Trade, 1990)

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Bluebook (online)
17 Ct. Int'l Trade 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-hewlett-packard-co-v-united-states-cit-1993.