[Federal Register Volume 68, Number 63 (Wednesday, April 2, 2003)]
[Notices]
[Pages 16097-16098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7917]


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DEPARTMENT OF LABOR

Employment and Training Administration

[TA-W-41,972]


American Greetings Corporation, Corbin, KY; Notice of Negative 
Determination Regarding Application for Reconsideration

    By application of November 25, 2001, petitioners requested 
administrative reconsideration of the Department's negative 
determination regarding eligibility to apply for Trade Adjustment 
Assistance (TAA), applicable to workers and former workers of the 
subject firm. The denial notice was signed on October 10, 2001, and 
published in the Federal Register on November 5, 2001 (67 FR 67422).
    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 petition for the workers of American Greetings Corporation, 
Corbin, Kentucky 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 petitioners allege that criterion (3) was acknowledged as 
having been met by the Department, as established by a determination in 
connection with TA-W-41,255 regarding subject firm workers. To provide 
proof of this, they attach an untitled page of this determination.
    In fact, this page was extracted from a determination which was 
issued as a ``Notice of Negative Determination Regarding Application 
for Reconsideration'', issued as the result of an investigation that 
followed the original ``Negative Determination Regarding Eligibility To 
Apply for Worker Adjustment Assistance.'' However, in this 
determination, the word ``not'' was inadvertently omitted in the 
statement ``increased imports did contribute importantly to worker 
separations.'' A corrected republication in full explaining the 
inadvertent omission was issued and published in the Federal Register 
on July 24, 2002 (67 FR 48484).
    The petitioners allege that ``we have been told from various 
sources of management that approximately nine percent of the work done 
at the Corbin plant has been outsourced to other countries.'' They also 
claim that ``American Greetings plans to outsource 75 percent of the 
work previously done at the Corbin plant to foreign countries within 
the next two years.
    A review of the initial investigation revealed that somewhat less 
than nine percent of greeting card sheet production has been outsourced 
to offshore facilities. However, as subject firm workers are not 
separately identifiable, the production of party goods, gift wrap and 
bows (ribbons), and candles must also be taken into consideration when 
looking at the percentage of plant production affected by this 
outsourcing. When considering imports of greeting card sheets in 
context with the total plant production, imports constitute a 
negligible percentage. In regard to any future outsourcing referenced 
by the petitioners, any future imports are beyond the relevant period.
    The petitioners also assert that sales and production have 
``declined in the last eight years'' and that ``we have been told the 
record shows that imported goods * * * hurt the company sales.'' At one 
point, they allege that layoffs have been occurring for the last three 
years, and recommend that the Department look at the last five years in 
assessing company trends.
    In establishing worker eligibility for trade adjustment assistance, 
the Department considers declines that occurred in the year preceding 
the date of the petition. To establish whether the declines exist, the 
investigation requires the most recent two years of data for 
corresponding periods in order to ascertain whether declines have 
occurred in the most recent period relative to the previous period. 
Thus periods of five and eight years are not relevant. Further, a 
review of the initial investigation revealed that all sales and 
production declines of party goods, gift wrap and bows (ribbons) and 
candles that occurred in the relevant period are attributable to 
domestic transfer. Production of greeting card sheets increased in 2001 
relative to 2000, but began to decline in January through March, 2002 
relative to the corresponding period of 2001. As mentioned above, 
imports of greeting card sheets were negligible relative to overall 
production.
    The petitioners also assert that laid-off company personnel are 
united in the belief that import impact affected layoffs, and state 
that ``the records and

[[Page 16098]]

data have proved'' that imports contributed importantly.
    No ``records and data'' were made available in regard to this 
request for reconsideration. In regard to attachments to the petition 
and request for reconsideration provided in a previous investigation 
for this worker group (TA-W-41,255) regarding competitive company 
imports (a company email discussing offshore shipments, labels 
indicating import shipments), the Department contacted the company, 
which provided specific information as to whether competitive imports 
had occurred, where production had been shifted, and specific 
percentages of import volume versus total plant production. In all 
cases where competitive imports occurred, the volume of imports was 
deemed negligible. It was on the basis of this specific information 
that the determination was made.
    Finally, the petitioners enumerate the three criteria for 
eligibility and assert that they meet all three criteria.
    As noted above, an investigation of the information available 
reveals that subject firm workers of American Greetings Corporation, 
Corbin, Kentucky do not meet the ``contributed importantly'' group 
eligibility requirement of Section 222(3) of the Trade Act of 1974, as 
amended.

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 in Washington, DC, this 7th day of March, 2003.
Edward A. Tomchick,
Director, Division of Trade Adjustment Assistance.
[FR Doc. 03-7917 Filed 4-1-03; 8:45 am]
BILLING CODE 4510-30-P