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Paden v. U.S. Department of Labor and Secretary of Department of Labor

decided: September 26, 1977.


Petition for Review of the Secretary of Labor's Determination Under Chapter 2, Title II of the Trade Act of 1974.

Fairchild, Chief Judge, and Tone and Wood, Circuit Judges.

Author: Wood

WOOD, Jr., Circuit Judge.

Petitioners are former employees of Motorola, Inc., who were engaged in the manufacture of either monochrome (black and white) television sets or automotive sound equipment at Motorola's plant in Quincy, Illinois. In May 1974, Motorola sold its trade name "Quasar" and all its television producing assets to Matsushita Electric Industrial Company, Ltd., a Japanese firm. Matsushita exercised an option to purchase the Quincy plant from Motorola and agreed to take over the plant in May 1976. During the interim, Motorola continued producing Quasar televisions and billed the appropriate subsidiary of Matsushita for the completed sets. Also during this period, Motorola began transferring its automotive sound equipment production from Quincy to its plant in Seguin, Texas in preparation for the conveyance of the plant to Matsushita.

In April 1975, Matsushita changed its manufacturing plans due to excess production capacity and decided to consolidate all Quasar television production at its plant in Franklin Park, Illinois. As a result, all television production at the Quincy plant was terminated in August 1975. All automotive sound equipment workers were terminated in May 1976.

On January 16, 1976, petitioners and those employees previously engaged in the production of color televisions at the Quincy plant applied to the Secretary of Labor for certification of eligibility to apply for worker adjustment assistance under 19 U.S.C. § 2271, et seq.*fn1 Pursuant to 29 C.F.R. § 90.12 the Director of the Office of Trade Adjustment Assistance conducted an investigation to determine whether the applicants qualified for certification.

The investigation disclosed that while imports of color televisions increased in absolute numbers from 1971 to 1973, and then declined in 1974 and 1975, the number of imports increased relatively from 1974 to 1975.*fn2 The investigation further disclosed that imports of automotive sound equipment increased absolutely each year from 1971 to 1973 but declined absolutely from 1974 to 1975. Imports of automotive sound equipment decreased relatively from 1971 to 1972, increased relatively each year from 1972 through 1974, and then decreased relatively in 1975. With respect to monochrome televisions, imports increased absolutely from 1971 to 1972, and then decreased absolutely each year from 1972 to 1975. Imports of monochrome televisions increased relatively each year from 1971 to 1974, but decreased relatively from 1974 to 1975. On the basis of the results of the investigation, the Secretary determined that an increase in imports of color televisions contributed importantly to the closing of television operations at Quincy. Thus, the Secretary certified those color television workers who had been separated from their employment between January 16, 1975, and November 1, 1975. The Secretary further concluded, however, that the investigation failed to disclose the existence of an increase in imports of automotive sound equipment or monochrome televisions as required by 19 U.S.C. § 2272(3). Accordingly, the Secretary denied certification to those workers engaged in the production of automotive sound equipment and monochrome televisions.

Petitioners first challenge the Secretary's conclusion that there were not "increases of imports" within the meaning of 19 U.S.C. § 2272(3), contending that the Secretary erred in two respects.*fn3 First, petitioners argue that the Secretary is obligated to compare years prior to the year immediately preceding the year of separation with the actual year of separation in determining whether there has been an increase in imports. Thus, a comparison of import statistics between any year from 1971 through 1973 with 1975 indicates a relative increase in the imports of both monochrome televisions and automotive sound equipment. Similarly, imports of automotive sound equipment increased absolutely in 1975 when that year is compared to either 1971 or 1972. Secondly, petitioners submit that the Secretary is required to compare imports for years other than the year of separation with preceding years in arriving at his determination. Viewing import statistics in this manner reveals a relative increase in imports of monochrome televisions between any two years from 1971 through 1974, and a relative increase in imports of automotive sound equipment between any two years from 1972 through 1974. In terms of absolute numbers, imports of monochrome televisions increased between 1971 and 1972, and imports of automotive sound equipment increased each year from 1971 through 1973.

The resolution of petitioners' argument depends upon the interpretation of "increases of imports" in 19 U.S.C. § 2272(3). We find nothing in the language of the statute itself to indicate the meaning of this requirement. Although the meaning proposed by petitioners is feasible, the term itself is nonetheless unclear and susceptible to various different interpretations. Thus, the following general rule which accords deference to the administrator's interpretation is applicable here.

When faced with a problem of statutory construction, this Court shows great deference to the interpretation given the statute by the officers or agency charged with its administration. "To sustain the Commission's application of this statutory term, we need not find that its construction is the only reasonable one or even that it is the result we would have reached had the question arisen in the first instance in judicial proceedings." Unemployment Comm'n of Territory of Alaska v. Aragon, 329 U.S. 143, 153, 67 S. Ct. 245, 250, 91 L. Ed. 136. See also e.g., Gray v. Powell, 314 U.S. 402, 62 S. Ct. 326, 86 L. Ed. 301; Universal Battery Co. v. United States, 281 U.S. 580, 583, 50 S. Ct. 422, 74 L. Ed. 1051. "Particularly is this respect due when the administrative practice at stake 'involves a contemporaneous construction of a statute by the men charged with the responsibility of setting its machinery in motion; of making the parts work efficiently and smoothly while they are yet untried and new.'" Power Reactor Development Co. v. International Union of Electricians, 367 U.S. 396, 408, 81 S. Ct. 1529, 1535, 6 L. Ed. 2d 924. Udall v. Tallman, 380 U.S. 1, 16, [13 L. Ed. 2d 616, 85 S. Ct. 792] (1965). See also Shea v. Vialpando, 416 U.S. 251, 262, n.11 [40 L. Ed. 2d 120, 94 S. Ct. 1746] (1974).*fn4

The persuasiveness of the Secretary's interpretation "depends upon the thoroughness evident in its consideration, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade if lacking power to control." Case & Company, Inc. v. The Board of Trade of the City of Chicago, 523 F.2d 355, 361 (7th Cir. 1975), citing Skidmore v. Swift & Co., 323 U.S. 134, 140, 89 L. Ed. 124, 65 S. Ct. 161 (1944). It is "entitled great weight and should be followed unless there are compelling indications that it is wrong." Old Ben Coal Corp. v. Interior Board of Mine Operations Appeals, 523 F.2d 25, 36 (7th Cir. 1975).

Upon review of the Secretary's reasoning, the relevant legislative history, and the Secretary's previous determinations, we are convinced that deference should be given the Secretary's interpretation of "increases of imports" in this case. The Secretary submits that by confining consideration to imports during the year of separation and the immediately preceding year, the Secretary can focus on those imports which are most likely to affect employment in the year of separation while diminishing consideration of those factors which, while affecting employment, are not within coverage of the act. Although petitioners' contention that imports in any given year may adversely affect employment several years later is not without validity and is indeed recognized as a distinct possibility by the Secretary, we are not convinced that the Secretary's practice should be condemned either generally or under the circumstances of this particular case.

The present provision regarding eligibility for assistance requires that the Secretary determine the existence of "increases of imports." The prior provision dealing with eligibility required an investigation to determine whether an article "is being imported." 19 U.S.C. § 1901(c)(2) (1970). If the investigation disclosed, among other things, the existence of "increased imports," the President could under prior law grant worker certification. 19 U.S.C. § 1902(c) (1970). We think that by requiring a determination that an article "is being imported," Congress indicated that imports during the year of separation affect employment greater than any other year and that the interest of this legislation was to remedy unemployment created by an increased number of imports in the current year. Throughout the legislative history numerous references are made to changes in the present assistance provision that are designed to ease the requirements for worker assistance. See e.g., S. Rep. No. 93-1298, 93rd Cong., 2d Sess., (1974), reprinted in [1974] U.S. Code Cong. & Ad. News 7186, 7205, 7275. Nowhere in the legislative history, however, does Congress attach any significance to the change from "is being imported" to "increases of imports." Moreover, the terms "increased imports" and "is being imported" are used interchangeably in other sections of the act as they were in the previous eligibility section. See e.g., 19 U.S.C. § 2251(b)(1) and 19 U.S.C. § 2251(b)(6). Although neither of those terms appear in the text of the current eligibility provision, the legislative history is replete with references to "increased imports" when worker eligibility assistance is referred to. See e.g. [1974] U.S. Code Cong. & Ad. News 7205, 7275, 7276 and 7283. Thus, it appears that the change from "is being imported" to "increases of imports" reflects merely a change in wording and not a change in Congress' belief regarding the effect of current imports or the primary intent of the statute.

The Secretary's interpretation of "increased imports" is also supported by Congress' recognition that factors other than imports could affect employment. In discussing an amendment that would provide relief only where imports ...

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