Former Employees of Invista v. U.S. Secretary of Labor

626 F. Supp. 2d 1301, 33 Ct. Int'l Trade 780, 33 C.I.T. 780, 31 I.T.R.D. (BNA) 1594, 2009 Ct. Intl. Trade LEXIS 65
CourtUnited States Court of International Trade
DecidedJune 18, 2009
DocketSlip Op. 09-60; Court 07-00160
StatusPublished
Cited by3 cases

This text of 626 F. Supp. 2d 1301 (Former Employees of Invista v. U.S. Secretary of Labor) 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 Invista v. U.S. Secretary of Labor, 626 F. Supp. 2d 1301, 33 Ct. Int'l Trade 780, 33 C.I.T. 780, 31 I.T.R.D. (BNA) 1594, 2009 Ct. Intl. Trade LEXIS 65 (cit 2009).

Opinion

OPINION

RIDGWAY, Judge.

In this action, former employees of the Chattanooga, Tennessee plant operated by Invista, S.a.r.l. (“the Workers”) contest the determinations of the U.S. Department of Labor denying their petition for certification of eligibility for trade adjustment assistance (“TAA”) and alternative trade adjustment assistance (“ATAA”). The determinations at issue include the Labor Department’s original denial of the *1304 Workers’ petition, as well as the agency’s denial of the Workers’ request for reconsideration, and the agency’s negative determination on remand. See 72 Fed.Reg. 7907, 7909 (Feb. 21, 2007) (notice of denial of petition); 72 Fed.Reg. 15,169 (March 30, 2007) (notice of denial of request for reconsideration); 73 Fed.Reg. 32,739 (June 10, 2008) (notice of negative determination on remand).

Now pending before the Court is the Workers’ Renewal of their Motion for Judgment Upon the Agency Record. See generally Plaintiffs’ Memorandum in Support of Motion for Judgment Upon Agency Record (“Pis.’ Brief’); Plaintiffs’ Memorandum in Support of Renewal of the Motion for Judgment Upon Agency Record (“Pis.’ Renewal Brief’); Plaintiffs’ Memorandum in Further Support of Renewal of the Motion for Judgment Upon Agency Record (“Pis.’ Reply Brief’). The Government opposes the Workers’ motion, maintaining that the Labor Department’s denial is supported by substantial record evidence and is otherwise in accordance with law. See generally Defendant’s Memorandum in Opposition to Plaintiffs’ Motion for Judgment Upon the Agency Record (“Def.’s Brief’).

Jurisdiction lies under 28 U.S.C. § 1581(d)(1) (2000). 1 For the reasons set forth below, this matter must be remanded to the Labor Department once again, for further consideration.

I. Background

The trade adjustment assistance laws are generally designed to assist workers who have lost their jobs as a result of increased import competition from — or shifts of production to — other countries, by helping those workers “learn the new skills necessary to find productive employment in a changing American economy.” Former Employees of Chevron Prods. Co. v. U.S. Sec’y of Labor, 26 CIT 1272, 1273, 245 F.Supp.2d 1312, 1317 (2002) (quoting S.Rep. No. 100-71, at 11 (1987)); see generally Former Employees of BMC Software, Inc. v. U.S. Sec’y of Labor, 30 CIT 1315, 1316-20, 454 F.Supp.2d 1306, 1307-11 (2006) (detailing history and policy underpinnings of trade adjustment assistance programs).

TAA programs entitle eligible workers to receive benefits that may include employment services (such as career counseling, resume-writing and interview skills workshops, and job referral programs), vocational training, job search and relocation allowances, income support payments, and a health insurance coverage tax credit. See generally 19 U.S.C. § 2272 et seq. (2000 & Supp. II 2002). In addition, older workers may be eligible for a wage insurance benefit, known as alternative trade adjustment assistance (“ATAA”). 2

The trade adjustment assistance laws are remedial legislation and, as such, are to be construed broadly to effectuate their intended purpose. UAW v. Marshall, 584 F.2d 390, 396 (D.C.Cir.1978) (noting “general remedial purpose” of TAA statute, and that “remedial statutes are to *1305 be liberally construed”); see also Fortin v. Marshall, 608 F.2d 525, 526, 529 (1st Cir.1979) (same); Usery v. Whitin Machine Works, Inc., 554 F.2d 498, 500, 502 (1st Cir.1977) (emphasizing “remedial” purpose of TAA statute); BMC, 30 CIT at 1320-21 n. 9, 454 F.Supp.2d at 1311 n. 9 (collecting additional cases).

Moreover, “[b]ecause of the ex parte nature of the certification process, and the remedial purpose of the [TAA] program,” the Labor Department is obligated to “conduct [its] investigation[s] with the utmost regard for the interests] of the petitioning workers.” Local 167, Int'l Molders and Allied Workers’ Union, AFL-CIO v. Marshall, 643 F.2d 26, 31 (1st Cir.1981); see also BMC, 30 CIT at 1321, 454 F.Supp.2d at 1312 (collecting additional cases). Thus, while the Labor Department is vested with considerable discretion in the conduct of its investigations of trade adjustment assistance claims, “there exists a threshold requirement of reasonable inquiry.” Former Employees of Hawkins Oil & Gas, Inc. v. U.S. Sec’y of Labor, 17 CIT 126, 130, 814 F.Supp. 1111, 1115 (1993); see also BMC, 30 CIT at 1321, 454 F.Supp.2d at 1312 (and authorities cited there). Courts have not hesitated to set aside agency determinations which are the product of perfunctory investigations. See BMC, 30 CIT at 1321 n. 10, 454 F.Supp.2d at 1312 n. 10 (cataloguing numerous opinions criticizing Labor Department’s handling of TAA cases).

II. The Facts of This Case

Until their termination on January 31, 2007, the Workers in this case were employed as part of the Nylon Apparel Filament Fibers Group at the Chattanooga, Tennessee plant operated by Invista, S.a.r.l. At the time of their termination, the Workers processed orders for nylon apparel filament fiber (“apparel fiber”) in support of apparel fiber production at a related plant in Monterrey, Mexico. See A.R. 2; 73 Fed.Reg. at 32,739; see also Pis.’ Brief at 4; Def.’s Brief at 6-7. 3 The apparel fiber had been manufactured at the Chattanooga plant, until domestic production ceased and all such production was shifted to the Monterrey, Mexico site in 2004. See A.R. 5-6, 45-46; 73 Fed.Reg. at 32,739-40. Since that shift, only nylon performance filament fiber (“performance fiber”) has been produced at the Chattanooga plant. See C. S.A.R. 8.

The 2004 shift in production to Mexico led to widespread layoffs of production workers and support personnel at the Chattanooga plant. See C. S.A.R. 7-8. In-vista management filed a petition for TAA and ATAA benefits on behalf of the terminated workers, which the Labor Department granted. Specifically, the Labor Department certified as eligible for TAA and ATAA all Invista workers “engaged in employment related to the production of,” inter alia,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Former Employees of Invista v. U.S. Secretary of Labor
657 F. Supp. 2d 1359 (Court of International Trade, 2009)
Former Employees of Invista, S.a.r.l. v. U.S. Secretary of Labor
33 Ct. Int'l Trade 1523 (Court of International Trade, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
626 F. Supp. 2d 1301, 33 Ct. Int'l Trade 780, 33 C.I.T. 780, 31 I.T.R.D. (BNA) 1594, 2009 Ct. Intl. Trade LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-invista-v-us-secretary-of-labor-cit-2009.