United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union, Local 2911 v. United States Secretary of Labor

33 Ct. Int'l Trade 418, 2009 CIT 35
CourtUnited States Court of International Trade
DecidedApril 30, 2009
DocketCourt 04-00492
StatusPublished

This text of 33 Ct. Int'l Trade 418 (United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union, Local 2911 v. United States 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
United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union, Local 2911 v. United States Secretary of Labor, 33 Ct. Int'l Trade 418, 2009 CIT 35 (cit 2009).

Opinion

OPINION

EATON, Judge:

In United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local 2911 v. United States Secretary of Labor, 32 CIT _, Slip Op. 08-45 (Apr. 30, 2008) (not reported in the Federal Supplement) (“Steelworkers IF), the court remanded this matter to the United States Department of Labor (“Labor” or the “Department”) for further explanation of its determination to deny plaintiff *419 ISU’s 1 request for an extension of Weirton Steel Corporation’s (“Weir-ton”) Trade Adjustment Assistance (“TAA”) eligibility certification from April 23, 2004 to May 18, 2004. On remand, the Department has again reached a negative determination. See Negative Determination on Remand, TA-W-54,455, Weirton Steel Corp., Weirton, WV (Dep’t of Labor Aug. 28, 2008) (the “Remand Results”).

As in Steelworkers II, jurisdiction lies under 28 U.S.C. § 1581(i)(4). See 32 CIT at_, Slip Op. 08-45 at 3-4; Indep. Steelworkers Union v. U.S. Sec’y of Labor, 30 CIT 1793, 1803-08, Slip Op. 06-171 at 21-30 (Nov. 17, 2006) (not reported in the Federal Supplement) (“Steelworkers F) (“It is clear that plaintiff’s action seeking review of the Department’s denial of its amendment request is a challenge to the Department’s administration and enforcement of 19 U.S.C. §§ 2272 and 2273.”). For the following reasons, Labor’s negative determination embodied in its Remand Results is sustained.

BACKGROUND

Weirton was a steel producer. Because the company was faced with “serious difficulties due to import surges” and financial hardship, ISU petitioned Labor in mid-2001 to establish the eligibility of the Weir-ton workers to apply for TAA benefits. 2 Pl.’s Rule 56.1 Mot. for J. *420 Agency R. (“Pl.’s Br.”) 3-4 (citations omitted). Labor’s determination was affirmative and the resulting certification found all Weirton workers, who became totally or partially separated from employment on or after July 3, 2000, eligible to apply for TAA cash benefits. See Notice of Determinations Regarding Eligibility to Apply for Worker Adjustment Assistance and NAFTA Traditional Adjustment Assistance, 67 Fed. Reg. 22,112 (Dep’t of Labor May 2, 2002) (the “2002 Certification”). Under the statute, the 2002 Certification was to remain in effect for two years from the date of certification, and thus expire on April 23, 2004. See 19 U.S.C. § 2291(a)(1)(B).

In May 2003, however, approximately one year prior to the 2002 Certification’s expiration, Weirton filed for Chapter 11 bankruptcy. See Pl.’s Br. 7; see also Weirton Steel Corp. Voluntary Pet. Chapter 11 Bankr., Admin. R. (“AR”) at 188-89. Thereafter, Weirton officials agreed to sell the company’s assets to its competitor International Steel Group (“ISG”). See Pl.’s Br. 8. To complete the sale, Weirton retained some of its workers to maintain the plant and to ensure a smooth transition of its facility to the new owners. See Letter Dated Sept. 14, 2004 from Mr. Terence P. Stewart to Labor, Suppl. Admin. R. (“SR”) at 12-15 (the “Stewart Letter”).

On March 9, 2004, ISU filed a new petition with Labor seeking TAA re-certification for Weirton’s workers based on facts present during an investigatory period covering the year prior to the petition’s filing (March 9, 2003, through March 9, 2004). See Weirton Steel Corp. Petition for TAA Dated Mar. 9, 2004 (the “2004 Petition”), AR at 2-40. Labor issued a negative determination with respect to this petition on May 14, 2004, finding that Weirton’s workers failed to meet the statutory requirements for certification. That is, Labor found that, during the investigatory period, increased steel imports did not contribute importantly to the worker separations. See Weirton Steel Corp., Weirton, WV: Negative Determination Regarding Eligibility To Apply for Worker Adjustment Assistance and Alternative Trade Adjustment Assistance (Dep’t of Labor May 14, 2004), AR at 101-03 (the “Negative Determination”); Notice of Determinations Regarding Eligibility To Apply for Worker Adjustment Assistance, 69 Fed. Reg. 31,134, 31,135 (Dep’t of Labor June 2, 2004) (notice).

Thereafter, on July 23, 2004, Labor denied plaintiff’s request for administrative reconsideration of the Negative Determination. See Weirton Steel Corp., Weirton, WV: Notice of Negative Determination Regarding Application for Reconsideration (Dep’t of Labor July 23, *421 2004), AR at 195-97 (the “Reconsideration Denial”); Weirton Steel Corp., Weirton, WV: Notice of Negative Determination Regarding Application for Reconsideration, 69 Fed. Reg. 47,184 (Dep’t of Labor Aug. 4, 2004) (notice).

On September 14, 2004, having failed to secure benefits by way of a re-certification, ISU wrote Labor to “formally request that [Labor] amend the [2002] TAA certification to change its expiration date from April 23, 2004, to May 18, 2004, so as to include all workers of Weirton Steel who were adversely affected by increased imports.” See Stewart Letter, SR at 12-15. The Stewart Letter details the circumstances that ISU believed justified an amendment to extend the 2002 Certification. Specifically, it recounts that the 2002 Certification’s expiration date of April 23, 2004 “came just a few weeks before substantially all of the production assets of Weirton Steel Corporation were acquired out of bankruptcy” by ISG, and that on May 18, 2004 the company ceased to produce steel. See Stewart Letter, SR at 13. It is those workers who remained with the company for the three to four weeks after the 2002 Certification expired, but before the Weirton sale was completed, that were the subject of Weirton’s request to extend the 2002 Certification. Stewart Letter, SR at 13-14.

According to plaintiff, the remaining workers “were engaged in preserving Weirton’s assets and facilities and preparing them for the sale to ISG.” 3 Stewart Letter, SR at 14. Plaintiff maintained that only an amendment of the 2002 Certification “would ensure that all the workers of Weirton Steel who were adversely affected by increased imports are included under [the 2002] Certification and eligible for needed assistance.” Stewart Letter, SR at 14.

In addition, the Stewart Letter stated that it was plaintiff’s “understanding that the Department has previously amended TAA certifications to extend the period of eligibility where workers have been retained beyond the original expiration date of a certification.” Stewart Letter, SR at 14 n.5 (citing O/Z-Gedney Co., Div. of EGS Elec.

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