Former Employees of Komatsu Dresser v. U.S. Secretary of Labor

16 Ct. Int'l Trade 300
CourtUnited States Court of International Trade
DecidedApril 24, 1992
DocketCourt No. 91-08-00559
StatusPublished

This text of 16 Ct. Int'l Trade 300 (Former Employees of Komatsu Dresser 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 Komatsu Dresser v. U.S. Secretary of Labor, 16 Ct. Int'l Trade 300 (cit 1992).

Opinion

Memorandum and Order

Goldberg, Judge:

In this action, Harold Langford, on behalf of the former employees ofKomatsu Dresser Company [“Komatsu”], filed this action appealing a final determination of the Secretary of Labor [’’Secretary”] denying certification for trade adjustment assistance benefits pursuant to 19 U.S.C. § 2272 (1988). The court has jurisdiction under 28 U.S.C. § 1581(d)(1) (1988) and 19 U.S.C. § 2395(a) (1988).

[301]*301Plaintiffs contest the Secretary’s determination that the third eligibility criterion of 19 U.S.C. § 2272 was not met because increased imports did not “contribute importantly” to plaintiffs’ loss of employment. After reviewing the administrative record and the arguments of the parties, the court concludes that the Secretary’s determination is not supported by substantial evidence. Therefore the court remands the case to the U.S. Department of Labor [“Labor”] to (1) further investigate plaintiffs’ allegations pursuant to the court’s instructions set forth below and (2) reevaluate plaintiffs’ eligibility for trade adjustment assistance benefits in light of newly discovered evidence, if any.

Background

On February 22,1991, Harold Langford petitioned Labor on behalf of former employees of the Gabon, Ohio facility of Komatsu for certification of eligibility for trade adjustment assistance benefits. The petition alleged that “[p]arts being shipped in from Japan [by Komatsu], [and Komatsu’s] buying [of] other foreign products” caused Komatsu to displace 156 employees between October 1,1990 and February 7,1991. Administrative Record (Public) at 2.

On March 4,1991, Labor initiated an investigation regarding workers at the Gabon facility of Komatsu. The Gabon facility produced cranes, excavators, planers, graders, rollers and hydraulic cylinders during the period of investigation. Labor investigated the sales and production of these products and determined that sales and production only significantly declined for rollers during the period of investigation. 1 Administrative Record (Public) at 13.

Based on this information, Labor denied plaintiffs’ petition for certification of eligibility on April 3,1991. Administrative Record (Public) at 33. Labor stated that the third criterion of 19 U.S.C. § 2272 (a) was not met. Specifically, the Secretary explained that the customer survey revealed that Komatsu’s rober customers did not purchase imported rollers during the period of investigation. Therefore, imports of rollers did not “contribute importantly” to the displacement of the petitioning workers. Notice of this negative final determination was published in the Federal Register on July 11,1991. See Negative Determination Regarding Eligibility to Apply for Worker Adjustment Assistance, 56 Fed. Reg. 31678 (1991).

On May 30, 1991, Harold Langford sought administrative reconsideration of the Secretary’s negative determination. In his letter to Labor, Mr. Langford stated that the petitioning workers had documents which would prove the third eligibility criterion of 19 U.S.C. § 2272 (1988). Mr. Langford attached to his letter purchase orders, packing lists and an inventory control card which revealed that Komatsu imported compo[302]*302nents for construction equipment it produced. Administrative Record (Public) at 38.

The Secretary denied the workers’ request for reconsideration, concluding that while Komatsu was indeed consistently importing some components for use in construction equipment production, none of the imported components had previously been produced by the petitioning workers.

Mr. Langford sought judicial review of the Secretary’s negative determination by filing a letter on August 6, 1991 at the Office of the Clerk of the United States Court of International Trade. The letter was deemed to constitute a summons and complaint. Labor responded with an answer filed on October 7, 1991. The Clerk of this court accepted a letter from plaintiff dated December 4,1991 as plaintiffs’motion for judgment upon the agency record. The motion was filed on December 9,1991.

Discussion

Congress introduced trade adjustment assistance in the Trade Act of 1974, codified at 19 U.S.C. §§ 2271 etseq. (1988 & Supp. II1990) to provide temporary financial assistance for workers who have been partially or totally displaced as a result of increased imports. Former Employees of Hawkins Oil & Gas, Inc. v. U.S. Secretary of Labor, 15 CIT 653, Slip Op. 91-115 at 5 (Dec. 23, 1991); Former Employees of Linden Apparel Corp. v. United States, 13 CIT 467, 715 F. Supp. 378, 379 (1989). Pursuant to 19 U.S.C. § 2272 (1988), a group of workers may be eligible to apply for adjustment assistance if the Secretary determines, after investigation:

(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 are 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.

When reviewing a determination by Labor regarding certification for trade adjustment assistance, the court must uphold Labor’s determination if it is supported by substantial evidence and a reasoned analysis, and is in accordance with law. 19 U.S.C. § 2395(b) (1988); see also Stidham v. U.S. Dept. of Labor, 11 CIT 548, 551, 669 F. Supp. 432, 435 (1987); United Steel Workers of America v. Donovan 10 CIT 147, 150, 632 F. Supp. 17, 20 (1986). The reviewing court may remand the case to the Secretary to further investigate if “good cause [is] shown;” 19 U.S.C. § 2395(b); see also Hawkins Oil & Gas, Inc., Slip Op. 91-115 at 7; and Linden Apparel Corp., 13 CIT at 469, 715 F. Supp. at 381, (citing 19 [303]*303U.S.C. § 2395(b)); however, it is not the court’s function to substitute its own analysis for that of Labor.

Labor has considerable discretion in managing trade adjustment assistance investigations.

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Related

Abbott v. Donovan
588 F. Supp. 1438 (Court of International Trade, 1984)
Former Employees of Linden Apparel Corp. v. United States
715 F. Supp. 378 (Court of International Trade, 1989)
United Steelworkers of America v. Donovan
632 F. Supp. 17 (Court of International Trade, 1986)
Stidham v. United States Department of Labor
669 F. Supp. 432 (Court of International Trade, 1987)

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16 Ct. Int'l Trade 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-komatsu-dresser-v-us-secretary-of-labor-cit-1992.