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Federal Register / Vol. 72, No.

25 / Wednesday, February 7, 2007 / Notices 5749

under a preferential trade agreement, or petitioners alleged that Tesco Register on December 20, 2004 (69 FR
there has been or is likely to be an Engineering was shifting production to 76017).
increase in imports). a foreign country. In the request for reconsideration, the
None. During the investigation, it was petitioner identified the subject
The workers’ firm does not produce revealed that Tesco Engineering company as ‘‘Tesco Technologies, LLC,
an article as required for certification manufactured equipment, while Auburn Hills, Michigan’’ and asserted
under Section 222 of the Trade Act of workers at Tesco Technologies, LLC that ‘‘we the petitioners are connected
1974. (‘‘Tesco Technologies’’), a subsidiary of to General Motors tooling only,’’
TA–W–60,488; Tellabs, Inc., Customer Tesco Engineering, created mechanical reiterated that designs are a product,
Distribution Center, Petaluma, CA. designs used to build equipment for and inferred that designers are de facto
TA–W–60,698; Commonwealth Sprague automotive part production. Since the production workers producing
Capacitor, Inc., North Adams, MA. petitioners created designs and did not automobile parts for General Motors.
TA–W–60,447; Honeywell International, produce equipment, the Department The petitioner also implied that the
Inc., Aerospace Information identified Tesco Technologies as the subject company’s major customer,
Technology Function, Phoenix, AZ. proper subject company. General Motors, had outsourced work to
Because the Department considered India.
The investigation revealed that design creation not to be production, the
criteria of Section 222(b)(2) has not been During the reconsideration
Department concluded that the investigation, the Department contacted
met. The workers’ firm (or subdivision) designers of Tesco Technologies could
is not a supplier to or a downstream a Tesco Technologies official, the
be certified only if they supported an General Motors officials identified by
producer for a firm whose workers were affiliated, TAA-certifiable, domestic,
certified eligible to apply for TAA. the petitioner, and the General Motors
production facility. Although Tesco official who supervised the design
None. Technologies’ designs accounted for an
I hereby certify that the contract at issue.
insignificant portion of the equipment
aforementioned determinations were During the reconsideration
produced at Tesco Engineering, the
issued during the period of January 15 investigation, the Department confirmed
Department nonetheless fully
through January 19, 2007. Copies of that the petitioners used application
investigated whether, during the
these determinations are available for software to develop tooling designs
relevant period, there were increased
inspection in Room C–5311, U.S. which were used to build equipment for
imports of production/assembly
Department of Labor, 200 Constitution the production of automobile parts for
equipment or a shift of production from
Avenue, NW., Washington, DC 20210 General Motors; the designs are
Tesco Engineering to an overseas
during normal business hours or will be facility. developed at Tesco Technologies,
mailed to persons who write to the The expanded investigation revealed Auburn Hills, Michigan and sent to the
above address. that Tesco Engineering neither shifted customer via electronic means (such as
Dated: January 26, 2007. production to a foreign country nor the Internet) and tangible means (such
imported any equipment during the as CD–ROM); and General Motors did
Ralph Dibattista,
relevant period. Further, a survey of not outsource work overseas but
Director, Division of Trade Adjustment awarded the work to another domestic
Assistance. Tesco Engineering’s major declining
customers revealed that, during the company and moved some design work
[FR Doc. E7–1953 Filed 2–6–07; 8:45 am] in-house.
BILLING CODE 4510–FN–P
relevant period, no customer increased
its import purchases while decreasing On January 11, 2005, the Department
its purchases from the subject firm. issued a Notice of Negative
On September 27, 2004, the Determination Regarding Application
DEPARTMENT OF LABOR
Department issued a denial regarding for Reconsideration which stated there
Employment and Training workers’ eligibility to apply for TAA was neither a shift of production abroad
Administration and ATAA for workers of Tesco by Tesco Technologies nor any
Technologies, LLC, Headquarters Office, outsourcing of design work overseas by
[TA–W–55,495] Auburn Hills, Michigan. The General Motors. The Department’s
determination was based on the findings Notice was published in the Federal
Tesco Technologies, LLC,
that there was neither an increase in Register on January 21, 2005 (70 FR
Headquarters Office, Auburn Hills, MI;
imports of equipment by Tesco 3228).
Notice of Revised Determination on
Engineering or its major declining By letter dated February 8, 2005, the
Second Remand
customers, nor a shift of production petitioners appealed to the USCIT for
On November 9, 2006, the United overseas by Tesco Engineering. The judicial review. On May 25, 2005, the
States Court of International Trade Department published the Notice of USCIT granted the Department’s motion
(USCIT) remanded Former Employees of determination in the Federal Register for voluntary remand to clarify the
Tesco Technologies, LLC v. United on October 26, 2004 (69 FR 62460). Department’s basis for the negative
States (Court No. 05–00264) to the By application dated October 22, determination on reconsideration and to
Department of Labor (Department) for 2004, the petitioner requested request additional information in the
further investigation. administrative reconsideration of the Department’s efforts to clarify the
In the August 19, 2004, Trade Department’s determination. On reasons for the previous determinations.
Adjustment Assistance (TAA) and December 7, 2004, the Department In the request for judicial review, the
Alternative Trade Adjustment issued a Notice of Affirmative petitioners alleged that engineers were
Assistance (ATAA) petition, three Determination Regarding Application brought in from India to train at Tesco
sroberts on PROD1PC70 with NOTICES

workers identified Tesco Engineering as for Reconsideration due to factual Technologies; later, the engineers were
the subject company and the article discrepancies identified during the sent back to India to a General Motors
produced as ‘‘designs for tooling and review of the request and of previously- facility; and ‘‘work is sent over to India
production lines for General Motors submitted documents. The Department’s via satellite in the evening and sent back
automotive assembly plants.’’ The Notice was published in the Federal for check and inspection in the

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5750 Federal Register / Vol. 72, No. 25 / Wednesday, February 7, 2007 / Notices

morning’’ (implying that designs were The Notice of Negative Determination Signed at Washington, DC this 26th day of
being imported). on Remand applicable to the subject January 2007.
In order for the Plaintiffs to be workers was issued on July 25, 2005 and Elliott S. Kushner,
certified for TAA based on a shift of the Notice of determination was Certifying Officer, Division of Trade
production, it must be shown that there published in the Federal Register on Adjustment Assistance.
was: August 5, 2005 (70 FR 45438). [FR Doc. E7–1955 Filed 2–6–07; 8:45 am]
(1) A significant portion or number of In its November 9, 2006 opinion, the BILLING CODE 4510–FN–P
workers at the subject company USCIT remanded the case at hand to the
separated or threatened with separation Department for further investigation.
during the relevant period; and Since the Notice of Negative DEPARTMENT OF LABOR
(2) either—(a) A shift in production of Determination on Remand applicable to
articles like or directly competitive with the subject firm was issued, the Employment and Training
those produced by the subject worker Department has clarified its policy to Administration
group to a country that is party to a free acknowledge that, under certain [TA–W–52,274]
trade agreement with the United States, circumstances, there may be articles
or a country that is named as a which are like or directly competitive to Thomson, Inc., Circlesville Glass
beneficiary under the Andean Trade a ‘‘unique’’ article. Operations, Circleville, OH; Amended
Reviewing the relevant facts with the Certification Regarding Eligibility To
Preference Act, the African Growth and
foregoing in mind, the Department has Apply for Worker Adjustment
Opportunity Act or the Caribbean Basin
determined that, during the relevant Assistance and Alternative Trade
Economic Recovery Act, or (b) a shift of
period, a significant portion of workers Adjustment Assistance
production abroad followed by actual or
was separated from the subject facility,
increased imports of articles like or In accordance with Section 223 of the
design production shifted abroad, and
directly competitive with those Trade Act of 1974 (19 U.S.C. 2273), and
the subject firm increased its imports of
produced by the subject worker group. Section 246 of the Trade Act of 1974 (26
designs following the shift.
Because it was shown that at least five In accordance with Section 246 the U.S.C. 2813), as amended, the
percent of workers at Tesco Trade Act of 1974 (26 U.S.C. 2813), as Department of Labor issued a
Technologies were separated during the amended, the Department herein certification of eligibility to apply for
relevant period, the worker separation presents the results of its investigation Trade Adjustment Assistance (TAA) on
criterion was met. regarding certification of eligibility to August 7, 2003, applicable to workers
Because India is not a country that is apply for ATAA for older workers. In and former workers of Thomson, Inc.,
party to a free trade agreement with the order for the Department to issue a Circleville Glass Operations, Circleville,
United States, or a country that is certification of eligibility to apply for Ohio. The Department’s Notice was
named as a beneficiary under the ATAA, the group eligibility published in the Federal Register on
Andean Trade Preference Act, the requirements of Section 246 of the September 2, 2003 (68 FR 52228). The
African Growth and Opportunity Act or Trade Act must be met. The Department workers were engaged in the production
the Caribbean Basin Economic Recovery has determined in the case at hand that of glass components of picture tubes
Act, the only issue in the first remand the requirements of Section 246 have prior to the subject firm’s closure in
investigation was whether, during the been met. June 2004.
relevant period, there was a shift of A significant number of workers at the On March 8, 2005, the Department
production abroad of articles like or firm are age 50 or over and possess issued a certification of eligibility for
directly competitive with those skills that are not easily transferable. Alternative Trade Adjustment
produced by Tesco Technologies Competitive conditions within the Assistance (ATAA) covering workers of
followed by actual or threatened industry are adverse. the subject firm separated from
increased imports of articles like or employment on or after June 27, 2002
directly competitive with those created Conclusion
through August 7, 2005. The
at Tesco Technologies. After careful review of the facts Department’s Notice was published in
Under the Department’s interpretation generated through the second remand the Federal Register on April 1, 2005
of ‘‘like or directly competitive,’’ (29 investigation, I determine that a shift in (70 FR 16851).
CFR 90.2) ‘‘like’’ articles are those production abroad of articles like or Even though production activity
articles which are substantially identical directly competitive to that produced at ceased in June 2004, the State of Ohio
in inherent or intrinsic characteristics the subject facilities followed by required the subject firm to submit
and ‘‘directly competitive’’ articles are increased imports of such articles within ninety days a cessation of
those articles which are substantially contributed to the total or partial operations plan and to undertake an 18-
equivalent for commercial purposes separation of a significant number or month process for the identification and
(essentially interchangeable and proportion of workers at the subject remediation of any hazards left over
adapted to the same uses), even though facility. In accordance with the from the manufacturing process. At the
the articles may not be substantially provisions of the Act, I make the time of the shutdown, the subject firm
identical in their inherent or intrinsic following certification: retained fifteen employees (‘‘shutdown
characteristics. All workers of Tesco Technologies, LLC, workers’’) solely for purposes of the
During the first remand investigation, Headquarters Office, Auburn Hills, Michigan, shutdown process.
the Department determined that because who became totally or partially separated The shutdown workers subsequently
each design created by the workers is from employment on or after August 19, petitioned for TAA/ATAA benefits (TA–
‘‘unique,’’ there could not be any 2003, through two years from the issuance of W–59,118), referring to TA–W–52,274
sroberts on PROD1PC70 with NOTICES

articles which are like or directly this revised determination, are eligible to for support. The Department determined
apply for Trade Adjustment Assistance under
competitive with any design produced Section 223 of the Trade Act of 1974, and are in TA–W–59,118 that the shutdown
by Tesco Technologies and, eligible to apply for Alternative Trade workers were ineligible for benefits
consequently, the shift of production Adjustment Assistance under Section 246 of because there was no production at the
criterion could not be met. the Trade Act of 1974, as amended. subject facility during the relevant

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