[Federal Register Volume 67, Number 21 (Thursday, January 31, 2002)]
[Notices]
[Pages 4751-4752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2339]


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DEPARTMENT OF LABOR

Employment and Training Administration

[TA-W-38,791 and NAFTA-04630]


Sierra Pacific Industries Loyalton, CA; Notice of Negative 
Determination Regarding Application for Reconsideration

    By application of May 31, 2001, the United Brotherhood of 
Carpenters & Joiners of America, Western Council of Industrial Workers, 
Local Union 3074 requested administrative reconsideration of the 
Department's negative determination regarding eligibility for workers 
and former workers of the subject firm to apply for Trade Adjustment 
Assistance (TAA) under petition TA-W-38,791 and North American Free 
Trade Agreement-Transitional Adjustment Assistance (NAFTA-TAA) under 
petition NAFTA-4630. The denial notices applicable to workers of Sierra 
Pacific Industries, Loyalton, California, were signed on April 24, 2001 
(TA-W-38,791), and April 30, 2001 (NAFTA-4630) and published in the 
Federal Register on May 9, 2001 (66 FR 23733) and May 18, 2001 (66 FR 
27691), 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 
misinterpretation of facts or of the law justified reconsideration of 
the decision.
    The TAA petition, filed on behalf of workers at Sierra Pacific 
Industries, Loyalton, California, producing softwood dimensional 
lumber, was denied 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 
survey revealed no increase customer imports of softwood dimensional 
lumber during the relevant period.
    The NAFTA-TAA petition for the same worker group was denied because 
criteria (3) and (4) of the group eligibility requirements in paragraph 
(a)(1) of Section 250 of the Trade Act, as amended, were not met. A 
survey was conducted and revealed that customers did not increase their 
imports of softwood dimensional lumber from Canada or Mexico during the 
relevant period. The subject firm did not import softwood dimensional 
lumber, nor was production of softwood dimensional lumber shifted from 
the workers' firm to Mexico or Canada.
    The petitioner alleges that the company in their closure notice 
indicated that the subject facility has been impacted by imports of 
softwood lumber from Canada. The petitioner supports this statement by 
indicating that the United States International Trade Commission, 
(USITC Publication No. 3426, May 2001) in the conclusion statement 
``for the foregoing reasons, we determine there is a reasonable 
indication that an industry in the United States is threatened with 
material injury by reason of imports of softwood lumber from Canada are 
allegedly subsidized by the Government of Canada and sold in the United 
States at less than fair value.'' The USITC preliminary decision was 
established after the original TAA and NAFTA-TAA investigations were 
completed. The Department does examine current USITC decisions during 
TAA and NAFTA-TAA investigations for import trends as appropriate. An 
examination of the USITC investigation revealed that Canadian and 
aggregate U.S. imports of softwood lumber remained relatively stable in 
the year 2000 over the corresponding 1999 period. Any increases in 
imports are relatively small and not a major contributing factor to the 
``contributed importantly'' criterion of worker group's eligibility 
requirements of section 222 of the Trade Act.''
    The USITC softwood lumber imports statistics provided in the USITC 
investigation are basket categories and not specific to softwood 
dimensional lumber and thus not specific to the products produced at 
the subject firm.
    The USITC preliminary decision focuses on the fact that there is 
reasonable indication that the softwood lumber industry is threatened 
with material injury by reason of subject imports of softwood lumber 
from Canada that are allegedly subsidized and sold at less than fair 
value. A foreign company subsidizing and selling at less than fair 
value is also not a relevant factor relating to the ``contributed 
importantly'' criterion of worker group's eligibility requirements of 
section 222 of the Trade Act.
    The petitioner further alleges that high log prices contributed to 
Sierra Pacific Industries' decision to close their Loyalton facility.

[[Page 4752]]

    The price of logs is not relevant to the TAA or NAFTA-TAA 
investigations that were filed on behalf of workers producing softwood 
dimensional lumber.

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 decisions. Accordingly, the application is denied.

    Signed at Washington, DC, this 14th day of January, 2002.
Edward A. Tomchick,
Director, Division of Trade Adjustment Assistant.
[FR Doc. 02-2339 Filed 1-30-02; 8:45 am]
BILLING CODE 4510-30-M