DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-39,593

MURUTA ELECTRONICS, NORTH AMERICA INC.
STATE COLLEGE OPERATIONS
STATE COLLEGE, PENNSYLVANIA

Notice of Negative Determination
Regarding Application for Reconsideration

By application dated March 5, 2002, the workers 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 February 20, 2002,
and published in the Federal Register on March 5, 2002 (67 FR
9324).
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 Muruta Electronics, North
America Inc., State College Operations, State College,
Pennsylvania 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 customers of
the workers' firm. The survey revealed that none of the
respondents increased their purchases of imported capacitors,
while decreasing their purchases from the subject firm during the
relevant period. The investigation further revealed that the
subject firm decreased their purchases of imported capacitors
during the relevant period.
The petitioner believes that the company shifted a
meaningful portion of plant capacitor production to a foreign
source, and is importing the capacitors back to the State College
plant.
A review of the data supplied by the company during the
initial investigation shows that company capacitors imports
declined during the relevant period. In fact, the imports
declined at a greater rate than the capacitor production at the
subject plant.
The petitioner also feels that the survey results may not
reflect accurate reported customer capacitor imports, since
customers may not know if the capacitors they purchased were
produced at the subject firm or produced in a foreign country.
One customer reported that they were not sure if the
capacitors purchased from the subject firm were produced
domestically or imported. That customer, however, estimated the
amounts they believed were imported during the specified periods
of the survey. That respondent and the other respondent(s)
reported capacitor imports declined sharply during the relevant
period.
Further review shows that aggregate U.S. imports of
capacitors declined sharply in 2001 over the corresponding 2000
period, followed by further steep declines during the January
through February 2002 period over the corresponding 2001 period.
Based on the declining import factors discussed above,
imports did not "contribute importantly" to the declines in
employment at the subject firm.
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, D.C. this 6th day of May 2002.

/s/ Edward A. Tomchick

EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-39,593

MURUTA ELECTRONICS, NORTH AMERICA INC.
STATE COLLEGE OPERATIONS
STATE COLLEGE, PENNSYLVANIA

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974 (19
USC 2273) as amended by the Omnibus Trade and Competitiveness Act
of 1988 (P. L. 100-418), the Department of Labor herein presents
the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance,
each of the group eligibility requirements of Section 222 of the
Act must be met:
(1) that a significant number or proportion of the workers
in the workers' firm, or an appropriate subdivision
thereof, have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) that sales or production, or both, of the firm or
subdivision have decreased absolutely; and

(3) that increases of imports of articles like or directly
competitive with articles produced by the firm or
appropriate subdivision have contributed importantly to
the separations, or threat thereof, and to the absolute
decline in sales or production.

The investigation was initiated on July 9, 2001, in response
to a petition filed on behalf of workers at Murata Electronics
North America, Inc., State College Operations, State College,
Pennsylvania. The workers for were engaged in employment related
to the production of capacitors, application specific capacitors,
and crystal oscillators. Workers are separately identifiable by
product line.
The investigation revealed that criterion (3) has not been
met.
The investigation found that Murata Electronics North
America, Inc., State College Operations, State College,
Pennsylvania did not have increasing imports of capacitors,
application specific capacitors, or crystal oscillators.
The U.S. Department of Labor conducted a survey of major
customers of Murata Electronics North America, Inc., State
College Operations, State College, Pennsylvania, regarding their
purchases of capacitors and crystal oscillators in 1999, 2000,
and January through July 2000 and 2001. None of the respondents
reported any increasing imports of articles like or directly
competitive with those produced at the State College plant.
Conclusion
After careful review, I determine that all workers of Murata
Electronics North America, Inc., State College Operations, State
College, Pennsylvania, are denied eligibility to apply for
adjustment assistance under Section 223 of the Trade Act of 1974.

Signed in Washington, D. C. this 20th day of February, 2002.

/s/ Linda G. Poole
____________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance