[Federal Register: February 12, 2007 (Volume 72, Number 28)]
[Notices]
[Page 6602-6603]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12fe07-107]
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DEPARTMENT OF LABOR
Employment and Training Administration
[TA-W-58,808]
Lexmark International, Inc.; Supply Chain Workforce Printing
Solutions And Services Division; Lexington, KY; Notice of Revised
Determination on Remand
On December 8, 2006, the U.S. Court of International Trade (USCIT)
granted the U.S. Department of Labor's motion for a voluntary remand in
Former Employees of Lexmark International, Inc. v. United States, Court
No. 06-00327.
On February 7, 2006, three workers filed a petition for Trade
Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance
(ATAA) on behalf of workers and former workers of Lexmark
International, Inc., Supply Chain Workforce, Printing Solutions and
Services Division, Lexington, Kentucky (subject facility). The
petitioners stated that the subject facility produced ``printers and
supplies'' and attached an article which stated that Lexmark
International, Inc. (Lexmark) planned to move jobs abroad to countries
where Lexmark has existing ink cartridge production facilities,
including Mexico, China, and the Philippines (``Lexmark benefits from
its plans to trim jobs,'' Bloomberg News, January 25, 2006).
In the negative determination, the Department stated that the
subject workers did not work directly in the manufacture of the
products made by Lexmark. The determination also stated that the
predominant cause of worker separations was not a shift of production
abroad but was Lexmark's decision to position support tasks closer to
where Lexmark's manufacturing partners and customers are located
worldwide, including Mexico and the Philippines.
The Department's Notice of determination applicable to the subject
facility was issued on February 24, 2006. The Department's Notice of
determination was published in the Federal Register on March 22, 2006
(71 FR 14550).
On March 25, 2006, a worker requested administrative
reconsideration of the Department's determination. In the request for
reconsideration, the worker alleged that the subject workers supported
the production of ink and printer cartridges produced by Lexmark and
inferred that support activities were shifted overseas when production
shifted abroad.
The Department issued a Notice of Affirmative Determination
Regarding Application for Reconsideration applicable to the subject
facility on April 13, 2006. On April 24, 2006, the Department's Notice
of determination was published in the Federal Register (71 FR 21042).
During the reconsideration investigation, the Department determined
that the subject workers are an integral part of ink and printer
cartridge production and are not separately identifiable by product
line. However, because the Department was repeatedly informed by the
subject firm that neither the subject facility nor Lexmark produced ink
or cartridges domestically during the relevant period, the Department
determined that the subject workers are not employed by a company
covered by the statute and, therefore, are not eligible to apply for
TAA because the subject workers were not employed by a firm (or an
appropriate subdivision) which produced an article domestically during
the relevant period.
The Department's Notice of Negative Determination on
Reconsideration applicable to the subject facility was issued on July
19, 2006. The Department's Notice of determination was published in the
Federal Register on July 31, 2006.
On September 19, 2006, the Plaintiff filed a complaint with the
USCIT. In the complaint, the Plaintiff alleged that the Department's
determination was based on the erroneous finding that ``Lexmark did not
produce ink or cartridges domestically during the twelve-month period
prior to the petition date.''
After careful review of the Plaintiff's complaint and the
administrative record, prepared in response to the complaint, the
Department filed a motion for voluntary remand.
On December 8, 2006, the USCIT granted the Department's motion for
voluntary remand to conduct further investigation and to make a
redetermination regarding the Plaintiffs' eligibility to apply for
worker adjustment assistance (TAA and ATAA).
In order to make an affirmative determination and issue a
certification of eligibility to apply for TAA, the group eligibility
requirements in either paragraph (a)(2)(A) or (a)(2)(B) of Section 222
of the Trade Act must be met. It is determined in this case that the
requirements of (a)(2)(B) of Section 222 have been met.
During the remand investigation, the Department reviewed the
administrative record, contacted Plaintiff's counsel,
[[Page 6603]]
and requested additional information and clarification from Lexmark.
During the remand investigation, the Department obtained new
information which revealed that, contrary to information previously-
submitted by Lexmark, the subject facility produced ink and that the
subject firm shifted ink production from the subject facility to
existing foreign inkjet cartridge production facilities, including
facilities in Mexico, during the relevant period, and that a
significant proportion of the workforce at the subject facility was
separated.
In accordance with Section 246 the Trade Act of 1974 (26 U.S.C.
2813), as amended, the Department herein presents the results of its
investigation regarding certification of eligibility to apply for ATAA
for older workers. In order for the Department to issue a certification
of eligibility to apply for ATAA, the group eligibility requirements of
Section 246 of the Trade Act must be met.
The Department has determined in the case at hand that the
requirements of Section 246 have been met.
A significant number of workers at the firm are age 50 or over and
possess skills that are not easily transferable. Competitive conditions
within the industry are adverse.
Conclusion
After careful review of the facts generated through the remand
investigation, I determine that a shift of production to Mexico of
articles like or directly competitive with ink produced at the subject
facility contributed to the total or partial separation of a
significant number or proportion of workers at the subject facility. In
accordance with the provisions of the Act, I make the following
certification:
All workers of Lexmark International, Inc., Supply Chain
Workforce, Printing Solutions and Services Division, Lexington,
Kentucky, who became totally or partially separated from employment
on or after February 7, 2005, through two years from the issuance of
this revised determination, are eligible to apply for Trade
Adjustment Assistance under Section 223 of the Trade Act of 1974,
and are eligible to apply for Alternative Trade Adjustment
Assistance under Section 246 of the Trade Act of 1974, as amended.
Signed at Washington, DC this 5th day of February 2007.
Elliott S. Kushner,
Certifying Officer, Division of Trade Adjustment Assistance.
[FR Doc. E7-2284 Filed 2-9-07; 8:45 am]
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