DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-41,142

SPX VALVES AND CONTROLS
LAKE CITY, PENNSYLVANIA

Notice of Negative Determination
Regarding Application for Reconsideration


By application received on May 31, 2002, the company
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). The denial notice applicable to workers of SPX
Valves and Controls, Lake City, Pennsylvania was issued on May
13, 2002, and will soon be published in the Federal Register.
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 investigation findings revealed that criterion (2) of
the group eligibility requirements of Section 222 of the Trade
Act of 1974 was not met. Subject firm sales and production of
valves increased from 2000 to 2001 and further increased from the
January through March 2002 period over the corresponding 2001
period. The workers were engaged in the production of valves.
The request for reconsideration alleges that sales and
production although increasing at the subject plant will begin to
decline during the third or fourth quarter of 2002. The company
further states that the company started importing valve parts
(valve bonnets, bodies, actuators and positioners) from foreign
sources during January 2002 and has purchase orders to import a
meaningful amount of valves during the remainder of the year.
The company request for reconsideration corresponds to the
TAA denial which was based on criterion (2) not being met, plant
sales and production did not decline during the relevant period.
Imports of valve parts cannot be considered in meeting
criterion (3) group eligibility requirements of Section 222 of
the Trade Act of 1974. The reported importation of component
parts beginning in January 2002 is not a relevant factor for
workers producing valves. The imported product must be like or
directly competitive with what the subject firm workers produce
(valves).
The petitioner further states that sales and production will
decline later this year and also appears to be stating that the
company has ordered foreign produced valves which will be
imported into the United States in the near future and continue
to be imported through the remainder of 2002. If conditions
change at the subject firm, the workers are encouraged to reapply
for TAA eligibility.
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 18th day of June 2002
/s/ Edward A. Tomchick
__________________________
EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance