International Union, United Automobile v. Donovan

746 F.2d 855, 241 U.S. App. D.C. 122, 6 I.T.R.D. (BNA) 1289
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 23, 1984
DocketNos. 83-1918, 83-2082
StatusPublished
Cited by1 cases

This text of 746 F.2d 855 (International Union, United Automobile v. Donovan) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Union, United Automobile v. Donovan, 746 F.2d 855, 241 U.S. App. D.C. 122, 6 I.T.R.D. (BNA) 1289 (D.C. Cir. 1984).

Opinion

Opinion for the Court filed by Circuit Judge SCALIA.

SCALIA, Circuit Judge:

This case presents two issues pertaining to retraining benefits for workers adversely affected by foreign competition, provided by the Trade Act of 1974: whether, when Congress provided a $3.7 billion lump-sum appropriation to the Department of Labor’s Employment and Training Administration, “for expenses necessary to carry into effect” the Trade Act training program and four other programs, the Secretary of Labor’s decision not to allocate any of that amount to the Trade Act training program is judicially reviewable; and whether the Secretary’s approval of training under the original version of the 1974 Act, which conferred no rights to compensation for training costs, was effective as the requisite approval under the 1981 amendments which did confer such rights.

[124]*124I

The Trade Adjustment Assistance (“Trade Act”) Program was created by the Trade Expansion Act of 1962, Pub.L. No. 87-794, 76 Stat. 872, for the purpose of providing benefits to workers and companies adversely affected by competition from foreign imports. The program was substantially expanded and revised by the Trade Act of 1974, Pub.L. No. 93-618, 88 Stat.1978. The principal benefits provided to workers are trade readjustment allowances (“TRAs”), which supplement state unemployment insurance benefits. See 19 U.S.C. §§ 2291-92, 2294 (1982); S.Rep. No. 1298, 93d Cong., 2d Sess. 131, 135-36 (1974), 1974 U.S.Code Cong. & Admin.News 1974, 7186, 7273, 7277-7278.

In 1981, as part of the Omnibus Budget Reconciliation Act (“OBRA”), Pub.L. No. 97-35, 95 Stat. 881, Congress enacted major amendments to the Trade Act of 1974, one aspect of which is the subject of the present litigation. Under the 1974 Act, the Secretary could approve training for a worker when he determined that:

there is no suitable employment available ..., but that suitable employment (which may include technical and professional employment) would be available if the worker received appropriate training....

19 U.S.C. § 2296(a) (1976). Although the Secretary was authorized under this section either to “provide” or “assure” the training (authority which he retains under the existing statute, see 19 U.S.C. § 2296(a)(1) (1982)), he was not required to do so, nor was he authorized to reimburse the worker for costs of approved retraining which the worker himself incurred. The incentive for retraining was 26 weeks of “extended” TRAs (beyond the 52 weeks generally available) payable to workers enrolled in approved programs. 19 U.S.C. § 2293(a)(3) (1976). If a worker refused, without good cause, to accept or continue, or failed to make satisfactory progress in, training to which he had been referred by the Secretary under this provision, he lost his entitlement to these supplemental benefits. 19 U.S.C. 2296(c) (1976).

The 1981 amendment revised the worker training provisions in two respects that are relevant here. First, it added to the conditions that had to be met before the Secretary could approve worker training, requiring the Secretary to determine that:

(A) there is no suitable employment (which may include technical and professional employment) available for a worker,
(B) the worker would benefit from appropriate training,
(C) there is a reasonable expectation of employment following completion of such training,
(D) training approved by the Secretary is available to the worker from either governmental agencies or private sources (which may include area vocational education schools, as defined in section 2461(2) of title 20, and employers), and
(E) the worker is qualified to undertake and complete such training, ____

19 U.S.C. § 2296(a)(1) (1982). If these conditions were met, the statute provided (as it had before) that “the Secretary may approve such training.” Id. (emphasis added). It continued (and this is the second major change): “Upon such approval, the worker shall be entitled to have payment of the costs of such training paid on his behalf by the Secretary.” Id.

In his instructions regarding implementation of the 1981 amendments to the state employment security agencies (“SESAs”) authorized to approve training on his behalf, 19 U.S.C. § 2311, the Secretary directed that training was to be approved only if, in addition to other requirements, “[sjufficient funds allocated to pay the costs of such training are available. A State agency shall not approve training for a worker when funds to be expended for this purpose would exceed the amount allocated by the Secretary.” Dept, of Labor, General Administration Letter No. 4-82 at 7 (Nov. 13, 1981). In other words, the SESAs were to operate on a “funds available” basis and were not to approve any training whose costs would exceed their fund allocations.

[125]*125Congress did not enact an appropriations bill for the Department of Labor for fiscal year (“FY”) 1982. As a result, the Department operated throughout the year under a series of four continuing resolutions.1 The first of these — passed on October 1, 1981 and set to expire on November 2(j, 1981— contained a general funding provision at an annual level of approximately $3.7 billion for the Department’s Employment and Training Administration (“ETA”), which administers the Trade Act program along with many other programs. Specifically, the Joint Resolution appropriated funds at the lower of the current rate or the appropriation foreseen in the Departments of Labor, Health and Human Services, and Education and Related Agencies Appropriation Act of 1982, which at that point had passed the House but not the Senate. See Act of Oct. 1, 1981, § 101(a)(1), (3), Pub.L. No. 97-51, 95 Stat. 958, 958-59 (1981). Since the 1982 Act, which provided an appropriation of $3,671 billion, was $3,472 billion below the 1981 appropriation, H.R. Rep. No. 251, 97th Cong., 1st Sess. 6 (1981), it was the governing referent. In full relevant part, the Appropriation Act provided as follows:

For expenses necessary to carry into effect the Comprehensive Employment and Training Act of 1973, as amended, sections 236, 237, and 238 of the Trade Act of 1974, as amended (19 U.S.C. 2101), section 51 of the Internal Revenue Code of 1954, as amended (26 U.S.C. 51), sections 210, 211, and 212 of Public Law 95-250, and the Veterans’ Employment and Readjustment Act of 1972, as amended (38 U.S.C. 2003A

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746 F.2d 855, 241 U.S. App. D.C. 122, 6 I.T.R.D. (BNA) 1289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-union-united-automobile-v-donovan-cadc-1984.