Former Employees of Hutchinson Technology, Inc. v. States

612 F. Supp. 2d 1349, 33 Ct. Int'l Trade 339, 33 C.I.T. 339, 31 I.T.R.D. (BNA) 1305, 2009 Ct. Intl. Trade LEXIS 59
CourtUnited States Court of International Trade
DecidedApril 9, 2009
DocketSlip Op. 09-28; Court 07-00335
StatusPublished

This text of 612 F. Supp. 2d 1349 (Former Employees of Hutchinson Technology, Inc. v. 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 Hutchinson Technology, Inc. v. States, 612 F. Supp. 2d 1349, 33 Ct. Int'l Trade 339, 33 C.I.T. 339, 31 I.T.R.D. (BNA) 1305, 2009 Ct. Intl. Trade LEXIS 59 (cit 2009).

Opinion

Opinion

CARMAN, Judge.

This case is before this Court pursuant to Plaintiffs Motion for Judgment on the *1351 Agency Record (USCIT R. 56.1). Based on the following analysis, the Court denies Plaintiffs motion and sustains the decision of the Department of Labor.

Background

Hutchinson Technology, Inc., is a manufacturer of suspension assemblies for disk drives. (Admin. Record (“AR”) at 7.) The Plaintiff, Former Employees of Hutchinson Technology, Inc. was separated from Hutchinson Technology, Inc. (“Hutchinson”) during the week of June 4, 2007. (Pl.’s Mot. for Summ. J. on the Agency Record (“Pl.’s Mot.”) 3.) Plaintiff submitted an application for Trade Adjustment Assistance (“TAA” or “worker adjustment assistance”) and Alternative Trade Adjustment Assistance (“ATAA”) on June 21, 2007. (Id.) This application was denied on July 10, 2007 (Id.) on the grounds that “[t]he subject firm did not shift production abroad, nor does it import suspension assemblies for disk drives.” (AR at 19.) After Plaintiff filed this case, Defendant U.S. Department of Labor (“Labor”) sought, and was granted, a voluntary remand for further investigation of Plaintiffs claim with respect to “additional information regarding the subject firm’s customers.” (Supp. Admin. Record (“SAR”) at 32.) This voluntary remand also resulted in a negative determination on January 18, 2008. (PL’s Mot. 4.) Plaintiff now requests that the Court “grant judgment in [its] favor ... pursuant to 19 U.S.C. § 2395(c) and USCIT R. 56.1.” (Id.) This Court has jurisdiction over this case pursuant to 28 U.S.C. § 1581(d)(1) (2000).

Standard of Review

The court will sustain the Department of Labor’s determination if it is supported by substantial evidence and is otherwise in accordance with law. 19 U.S.C. § 2395(b) (2000); see also Woodrum v. Donovan, 5 CIT 191, 193, 564 F.Supp. 826, 828 (1983), aff'd, 737 F.2d 1575 (Fed.Cir.1984). The findings of fact by the Secretary are conclusive if supported by substantial evidence. 19 U.S.C. § 2395(b) (2000). “Substantial evidence is something more than a ‘mere scintilla,’ and must be enough reasonably to support a conclusion.” Cer amica Regiomontana, S.A. v. United States, 10 CIT 399, 405, 636 F.Supp. 961, 966 (1986), aff'd, 810 F.2d 1137 (Fed.Cir.1987) (citations omitted). “Additionally, ‘the rulings made on the basis of those findings [must] be in accordance with the statute and not be arbitrary and capricious, and for this purpose the law requires a showing of reasoned analysis.’ ” Former Employees of Gen. Elec. Corp. v. U.S. Dep’t of Labor, 14 CIT 608, 611 (1990) (quoting Int'l Union v. Marshall, 584 F.2d 390, 396 n. 26 (D.C.Cir.1978)).

Discussion

In order to qualify for worker adjustment assistance as directly-impacted (primary) workers, the Department of Labor must first find that

(1) 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 are threatened to become totally or partially separated!.]

19 U.S.C. §. 2272(a)(1) (Supp. V 2005). In addition, Labor must find that one of two sets of further criteria are satisfied. The first set of criteria is satisfied if Labor finds that

(2)(A)(i) the sales or production, or both, of such firm or subdivision have decreased absolutely;
(ii) imports of articles like or directly competitive with articles produced by such firm or subdivision have increased; and
(iii) the increase in imports described in clause (ii) contributed importantly to such workers’ separation or threat of *1352 separation and to the decline in the sales or production of such firm or subdivision;

19 U.S.C. § 2272(a)(2)(A) (Supp. V 2005) (emphasis added). In this case, Labor found that there had been no increase of imports of articles like or directly competitive with the article produced by Hutchinson, and therefore denied Plaintiff eligibility under the first set of criteria. (AR at 19 (see also SAR at 75-77 (reaching the same conclusion after Labor’s voluntary remand)).)

A group of displaced workers may also qualify for primary TAA benefits if Labor finds the second set of criteria is satisfied, namely that

(B)(i) there has been a shift in production by such workers’ firm or subdivision to a foreign country of articles like or directly competitive with articles which are produced' by such firm or subdivision; and
(ii)(I) the country to which the workers’ firm has shifted production of the articles is a party to a free trade agreement with the United States;
(II) the country to which the workers’ firm has shifted production of the articles is a beneficiary country under the Andean Trade Preference Act ..., African Growth and Opportunity Act ..., or the Caribbean Basin Economic Recovery Act ...; or
(III) there has been or is likely to be an increase in imports of articles that are like or directly competitive with articles which are or were produced by such firm or subdivision.

19 U.S.C. § 2272(a)(2)(B) (Supp. V 2005) (emphasis added). In its first determination in this case, Labor found that Hutchinson had not shifted production abroad, and thereby concluded that Plaintiff did not qualify for TAA benefits under this second set of criteria. (AR at 19 (see also 19 U.S.C. § 2272(a)(2)(B)(ii)(I), highlighted above.)) After voluntary remand, Labor considered whether “sorting” work constituted production. Labor determined that sorting was not production, but even if it was, none of the three additional factors was satisfied. (SAR at 77-78 (see also 19 U.S.C. § 2272

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612 F. Supp. 2d 1349, 33 Ct. Int'l Trade 339, 33 C.I.T. 339, 31 I.T.R.D. (BNA) 1305, 2009 Ct. Intl. Trade LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-hutchinson-technology-inc-v-states-cit-2009.