The Division of Trade Adjustment Assistance (TAA), U.S. Department of Labor, has reversed itself and is now offering Alternative Trade Adjustment Assistance (ATAA) to workers and former workers at NSK's Ann Arbor, Michigan facility.

Created in 1974, TAA, "provides aid to workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports."

In January 2005, NSK Americas, Inc. (USA, a subsidiary of NSK Ltd., Japan) announced it would be closing the Ann Arbor, Michigan automotive bearing plant by third quarter 2007. NSK said production will be shifted to available space at its underutilized plant in Clarinda, Iowa.

People began losing their jobs in October 2005, and layoffs at Ann Arbor will continue through 2007 as production is wound down and shifted to Clarinda.

Worker Representatives filed a TAA claim, alleging the job losses were the result of increased imports of ball bearings competing with Ann Arbor's product line. The factory produces automotive size bearings such as fan clutch bearings, for automakers, industrial manufacturers and the automotive aftermarket.

The Department of Labor's initial decision, in February 2006, declined benefits under TAA. The ruling found job losses in Ann Arbor did not happen because NSK was importing more bearings or because NSK shifted ball bearing production overseas. Instead, it decided the job losses in Ann Arbor happened simply because NSK moved the work to Clarinda.

In March 2006, the UAW appealed. The appeal showed a "domino effect," where Clarinda had lost jobs and production to overseas facilities; as a result, Clarinda was underutilized and NSK made the decision to move Ann Arbor production to Clarinda. Hence, they asserted, Ann Arbor's job losses to Clarinda were a direct result of Clarinda losing work and production overseas.

In its re-investigation, Labor found NSK did offer that it shifted bearing production overseas and that foreign-produced ball bearings were being imported in their place. In addition, NSK said that Ann Arbor was indeed being closed due to excess capacity in North America.

Following the review, Elliott Kushner, the Division of Trade Adjustment Assistance Certifying Officer, reversed the initial decision.

He found that, "increased imports of bearings like or directly competitive with those produced at the subject facility contributed importantly to worker separations at the subject firm."

The certification states:

All workers of NSK Corporation, Ann Arbor, Michigan who became totally or partially separated from employment on or after November 18, 2004, through two years from the date of this certification, are eligible to apply for adjustment assistance under Section 223 of the Trade Act of 1974, and are also eligible to apply for alternative trade adjustment assistance under Section 246 of the Trade Act of 1974.

Assistance under the program (from the U.S. Department of Labor)

www.doleta.gov

Workers whose employment is adversely affected by increased imports may apply for TAA. TAA offers a variety of benefits and reemployment services to assist unemployed workers prepare for and obtain suitable employment. Workers may be eligible for training, job search and relocation allowances, income support and other reemployment services.

To be eligible for TAA benefits, you must have been laid off or put on a reduced work schedule (hours of work reduced to 80 percent or less of your average weekly hours and wages reduced to 80 percent or less of your average weekly wage) on or after the "Impact Date" and before the ending date of certification.

In order for the U.S. Department of Labor to issue a Certification Regarding Eligibility to Apply for Worker Adjustment Assistance, the following requirements must be met:

(1) that workers have been totally or partially laid off, and
(2) that sales or productions have declined, and
(3) that increased imports have contributed importantly to worker layoffs.

Once the U.S. Department of Labor issues a Certification Regarding Eligibility, trade affected workers may apply for benefits under the TAA program.

When a determination by the U.S. Department of Labor states that workers who petitioned do not meet the eligibility requirements under this program, workers may obtain benefits and services from other job training programs such as the Workforce Investment Act (WIA).

The TAA program emphasizes a comprehensive, timely array of retraining and reemployment services tailored to meet the needs of the individual workers. Major activities and services include:

• Training for employment in another job or career. Workers may receive up to 104 weeks of approved training in occupational skills, basic or remedial education, or training in literacy or English as a second language.

• Income Support known as trade readjustment allowances (TRA) are weekly cash payment available for 52 weeks after a worker's unemployment compensation (UC) benefit is exhausted and during the period in which a worker is participating in an approved full-time training program. Income Support is a combination of UC and TRA benefits for a maximum of 78 weeks (26 weeks for UC and 52 weeks for TRA).

• Job Search Allowance may be payable to cover expenses incurred in seeking employment outside your normal commuting area.

• Relocation Allowances provide reimbursement for approved expenses if you are successful in obtaining employment outside your normal commuting area for you to relocate to your new area of employment.

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