United Electrical, Radio & Machine Workers of America v. Dole

14 Ct. Int'l Trade 818
CourtUnited States Court of International Trade
DecidedDecember 13, 1990
DocketCourt No. 86-11-01409
StatusPublished

This text of 14 Ct. Int'l Trade 818 (United Electrical, Radio & Machine Workers of America v. Dole) 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
United Electrical, Radio & Machine Workers of America v. Dole, 14 Ct. Int'l Trade 818 (cit 1990).

Opinion

Memorandum and Order

Restani, Judge-.

Defendant has now submitted its third determination to the court. 1 Plaintiffs, former employees of the Swissvale, Pennsylvania plant of Union Switch and Signal (“Company” or “Union Switch”), a company producing railway systems, claim that they lost their jobs because the Company substituted foreign imports for products formerly produced at Swissvale.2 Initially, the Department of Labor (“Labor” or “Secretary”) denied certification of any Swissvale workers. Labor, on redetermination after finding that it had conducted an inadequate investigation, certified three sections of the plant, comprising section 110 (sheet metal fabrication), section 390 (dipping of sheet metal to prevent rusting), and section 222 (part of Unit Shop II that wired office control panels). The certification included sixty (60) of approximately five hundred (500) workers.

Petitioners objected to the determination, claiming that the Company had previously supplied false and misleading information to Labor, and that imported Canadian panels adversely affected employment throughout the plant. Moreover, plaintiffs claimed that other imports, [819]*819such as Korean relay frames and Italian train-stop kits, caused layoffs. The court sustained the findings with respect to Korean relay frames hut remanded the case once more for further investigation of the other two items. See United Electrical II. The results of that remand, which the court will refer to as the “third remand investigation,” are the subject of this opinion.

I. Facts

On March 28,1990, during the third investigation, Labor obtained a sworn affidavit executed by V. John Poremba. Supplemental Administrative Record (Supp. Ad. R.) at 8-12. The affiant stated that he hadbeen Vice President of Manufacturing at Union Switch for more than ten years until his retirement approximately four years ago, some months prior to the end of the investigatory period. As Vice President, he had been responsible for all Company plants, including plants in Pennsylvania, South Carolina, Georgia, and Ireland. Supp. Ad. R. at 8. The Swissvale plant produced train control systems and equipment. The systems consisted of control panels and relays which were arranged according to engineering specifications. According to Mr. Poremba the engineering content contributed between 15 percent and 30 percent of the total work. The higher percentage engineering content involved totally new systems designs. Supp. Ad. R. 8-9.

Mr. Poremba stated that he had examined the process sheet and the bill of materials included in the administrative record at pp. A-29, A-43 and A-443, and believed them to represent the type and size of panels produced at Swissvale. The larger panels, of which Swissvale produced between four to six per year, were associated with control systems with a total value that far exceeded the typical panel referred to in the earlier administrative records. The discrepancy in value was due to the heavy engineering content and the value of the wiring and equipment in the control panel. According to the affidavit, even in the case of the one control panel imported from Canada that he recalled, all of the wiring and equipment was added at Swissvale. Moreover, the bulk of the components listed on pp. A-43 and A-44, which completion of the panel required, would have been supplied from Swissvale even if the Company had purchased the panel from outside sources. Supp. Ad. R. at 9-10.

With regard to the purchase order for the Italian train-stop kit at C-1334, Mr. Poremba stated that to the best of his recollection, this purchase involved engineering and technology different from that employed at Swissvale. Supp. Ad. R. at 10-11.

In a sworn statement dated April 2,1990, Andrew J. Carey, Director of Transit Engineering and Michael L. Grossman, Director of Transit Projects, confirmed the following information regarding the Company’s [820]*820supply of an Automatic Train Stop System as part of Contract Number CY-111 with the Port Authority of Allegheny County (PAC):

1. The Technical Specification for Contract CY-111 required an “intermittent” train-stop system.

2. Union Switch did not manufacture such a train-stop system.

3. In order to comply with the Technical Specification, Union Switch subcontracted with Compagnia Italiana Segnali (CIS) of Torino, Italy for the supply of the train-stop system. Supp. Ad. R. at 14.

By letter dated April 3,1990, Mr. Grossman supplied the following additional information regarding the train-stop system provided by Union Switch to PAC under Contract CY-111 (Supp. Ad. R. at 15):

1. The Technical Specification for Contract CY-111 called for an “intermittent” train-stop system, which was the type of system in common use in European countries; Union Switch & Signal’s own type of train-stop system was “continuous,” which is typically employed by railways and transit authorities in the United States.

2. The CY-111 contract was for a total of approximately $20,000,000, of which the train-stop system represented $1,200,000. Of this $1,200,000, approximately $250,000 was for engineering.

Unable to locate a significant amount of documentary evidence supporting these statements, Labor held a hearing under a protective order on May 23,1990. Company officials Messrs. Michael Grossman, Andrew J. Carey, V. John Poremba, and Louis D. Kopsa testified pursuant to the Secretary’s subpoenas. Petitioners asked to present their own witnesses but Labor denied this request. Labor did not allow petitioners to cross-examine the witnesses.5

Subsequent to the hearing, plaintiffs submitted to Labor undated, un-sworn statements, captioned affidavits, from Messrs. Bruce Wilson, James Fonzi, John Fabrizi and V. John Poremba. Supp. Ad. R. at 55-60. Mr. Wilson stated that he had been employed at Union Switch for over 35 years and that, between 1980-85, he was the management employee in charge of the Quality Assurance Section (QA), which had responsibility for testing/simulation of systems, including display panels. A test/ simulation could take a number of months, involving upwards of 45 employees in two shifts. According to Mr. Wilson, the importation of Canadian panels had a significant effect on employment throughout the plant because the imported panels came with the component parts, which Swissvale had manufactured, already installed and with the wiring complete. The only work remaining to be completed was the wiring together of the already finished panel sections. By importing panels, the Company reduced the workload of the QA section by one third. Mr. Wilson estimated that imports of panels and other components eliminated well over twenty percent of the jobs at Swissvale because departments [821]*821throughout the plant (engineering, drafting, store room, machine shop, engraving, silk screening, fabricating, shipping, receiving, assembly, and testing) were affected by the importation of panels. According to Mr. Wilson, Swissvale had made vital and non-vital relays that were used extensively as component parts in rail control systems, including display panels. By the time Mr. Wilson left Swissvale, the LP-100 non-vital relay, which Swissvale had produced in large quantities, had been replaced by the mid-tex relay, produced in Mexico. Supp. Ad. R. at 56.

Mr.

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Bluebook (online)
14 Ct. Int'l Trade 818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-electrical-radio-machine-workers-of-america-v-dole-cit-1990.