[Federal Register Volume 62, Number 85 (Friday, May 2, 1997)]
[Notices]
[Pages 24136-24137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11465]


-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Employment and Training Administration
[TA-W-32,962 and NAFTA-01337]


Rayonier, Incorporated (Port Angeles Mill) Port Angeles, 
Washington; Notice of Negative Determination on Reconsideration

    On February 4, 1997, the Department issued an Affirmative 
Determination Regarding Application for Reconsideration for the workers 
and former workers of the subject firm. The petitioner presented 
evidence that the Department's investigations were incomplete. The 
notice was published in the Federal Register on February 13, 1997 (62 
FR 6806).
    The Department initially denied worker adjustment assistance to the 
Rayonier, Incorporated worker group because the ``contributed 
importantly'' group eligibility requirement of Section 222(3) of the 
Trade Act of 1974, as amended, was not met. The ``contributed 
importantly'' test is generally demonstrated through a survey of the 
workers' firm's customers. The investigation revealed that none of the 
customers reported increasing imports of pulps for chemical, paper and 
speciality end uses in the relevant period would decreasing purchases 
from Rayonier, Incorporated, Port Angeles Mill.
    The Department initially denied NAFTA-TAA for the workers of 
Rayonier, Incorporated, Port Angeles, Washington, because criteria (3) 
and (4) of paragraph (a)(1) of Section 250 of the Trade Act were not 
met. Rayonier did not import pulps for chemical, paper and specialty 
end uses from Canada or Mexico, nor was there a shift of production 
from Port Angeles to Canada or Mexico. The customers of Rayonier did 
not increase imports of specialty pulps from Mexico or Canada while 
reducing their purchases from the subject firm.
    The petitioner alleges that the wood usage per ton of product is 
significantly higher compared to higher yield process/products such as 
for paper pulps. The high wood usage per ton of product combined with 
very high average wood costs in the Pacific Northwest compared to other 
parts of the world contributed to not being able to compete against 
lower cost foreign suppliers. Further, the low cost competitive pulps 
available from foreign sources have also adversely influenced the 
pricing of higher value pulps produced by the Port Angeles mill. 
Additionally, foreign competitors are located in areas of low cost and 
plentiful wood supply and they also benefit from lower labor costs. In 
order to determine worker group eligibility, the Department must 
examine the impact of imports of products like or directly competitive 
with those articles produced at the Port Angeles mill. Pricing and/or 
the cost of raw material is not a criterion for worker certification.
    On reconsideration, the Department reexamined the customer survey 
conducted for Rayonier's declining customers. The original survey 
revealed that none of the customers reported increasing their purchases 
of pulps for specialty end uses while decreasing their purchases from 
Rayonier. Findings on reconsideration show that one customer, Rayonier 
requested we contact, reporting reduced purchases from Rayonier no 
longer produced the product for which the pulp was used.
    The petitioner explained that some of the main customers of the 
Port Angeles mill have qualified alternate dissolving pulps including 
pulps from Rayonier's other domestic facilities. Product purchases by 
the subject firms' customers from other domestic suppliers is not a 
basis for worker certification.
    Other findings on reconsideration showed that the majority of the 
specialty pulp produced at the Port Angeles mill was for the export 
market, and thus is not affected by imports.
    The petitioner provided contact names and telephone numbers of 
industry experts so that the Department could examine the factors 
affecting the pulp and paper industry. During the course of an 
investigation to determine worker group eligibility, the Department 
does not conduct an industry study, but limits its investigation to the 
impact of imports like or directly competitive with the products 
produced and sold by the workers' firm.

Conclusion

    After reconsideration, I affirm the original notice of negative 
determination of eligibility to apply for adjustment assistance and 
NAFTA-TAA

[[Page 24137]]

for workers and former workers of Rayonier, Incorporated, Port Angeles, 
Washington.

    Signed at Washington, D.C., this 21st day of April 1997.
Russell T. Kile,
Program Manager, Policy and Reemployment Services, Office of Trade 
Adjustment Assistance.
[FR Doc. 97-11465 Filed 5-1-97; 8:45 am]
BILLING CODE 4510-30-M