[Federal Register Volume 63, Number 97 (Wednesday, May 20, 1998)]
[Notices]
[Page 27748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13419]


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DEPARTMENT OF LABOR

Employment and Training Administration
[TA-W-34,214 and NAFTA-02157]


Fort James Corp., Towel and Tissue Division, Ashland, WI; 
Negative Determination Regarding Application for Reconsideration

    By application dated March 27, 1998, the United Paperworkers 
International Union (UPIU) Local 1104 requested administrative 
reconsideration of the Department's negative determination regarding 
eligibility to apply for Trade Adjustment Assistance (TAA) and NAFTA-
Transitional Adjustment Assistance (NAFTA-TAA), applicable to workers 
and former workers of the subject firm. The denial notices were signed 
on March 11, 1998. The TAA and NAFTA-TAA decisions were published in 
the Federal Register on April 3, 1998, (63 FR 16574) and (63 FR 16575), 
respectively.
    Pursuant to 29 CFR 90.18(c) reconsideration may be granted under 
the following circumstances:
    (1) If it appears on the basis of facts not previously considered 
that the determination complained of was erroneous;
    (2) If it appears that the determination complained of was based on 
a mistake in the determination of facts not previously considered; or
    (3) If in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified reconsideration of the 
decision.
    The negative TAA determination issued by the Department was based 
on the binding that the ``contributed importantly'' test of the worker 
group eligibility requirements of section 222 of the Trade Act of 1974 
was not met for workers of Fort James Corporation, Ashland, Wisconsin 
producing commercial napkins. The ``contributed importantly'' test is 
generally demonstrated through a survey of the workers' firm's 
customers. The Department of Labor surveyed the major declining 
customers of the subject firm regarding their purchases of commercial 
napkins. None of the respondents reported import purchases of 
commercial napkins in 1996, 1997 or in January 1998.
    The subject firm workers were denied eligibility to apply for 
NAFTA-TAA based on the finding that criteria (3) and (4) of the group 
eligibility requirements of paragraph (a)(1) of section 250 of the 
Trade Act of 1974, as amended, were not met. There was no shift in 
production of commercial napkins from the subject firm to Mexico or 
Canada, nor were there company or customer imports of like or directly 
competitive products from Mexico or Canada.
    The UPIU Local 1104 asserts that some of the machinery at the 
Ashland mill is scheduled for delivery to China and Europe by the end 
of summer 1998. The shipment or sale of production equipment to foreign 
countries is not a basis for a worker group certification under the 
Trade Act of 1974.
    The UPIU Local 1104 provided import statistics for tablecloths and 
table napkins made of paper for 1997. this information does not 
substantiate import impact for workers of Fort James Corporation. There 
must be company or customer increases of imports of articles like or 
directly competitive with those produced by workers at the subject 
firm.
    The UPIU Local 1104 asserts that during the petition investigation, 
the customer list provided by the company did not include all of the 
Fort James Corporation Ashland customers. The customer list requested 
by the Department and provided by company officials accounted for 
Ashland's major declining customers.
    Finally, the UPIU Local 1104 asserts that prices for market pulp 
and paperboard has increased, thereby affecting company cost to compete 
for materials used in the production of commercial napkins. Price of 
raw materials to produce a product is not a basis for a worker group 
certification under the Trade Act of 1974.

Conclusion

    After review of the application and investigative findings, I 
conclude that there has been no error or misinterpretation of the law 
or of the facts which would justify reconsideration of the Department 
of Labor's prior decision. Accordingly, the application is denied.

    Signed at Washington, DC, this 4th day of May 1998.
Grant D. Beale,
Acting Director, Office of Trade Adjustment Assistance.
[FR Doc. 98-13419 Filed 5-19-98; 8:45 am]
BILLING CODE 4510-30-M