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Former Employees of Permian Corp. v. U.S., 13 C.I.T. 673, 718 F.Supp. 1549, 11 ITRD 1735

Facts

The plaintiffs, former employees of Permian Corp., filed a petition for trade adjustment assistance benefits after being laid off in 1986. They argued that their layoffs were due to the adverse effects of low-priced imported oil on the domestic oil industry. However, the Secretary of Labor determined that Permian Corp. was engaged in transporting and marketing crude oil, not in exploration or drilling, which disqualified the employees from receiving benefits under the Trade Act.

On November 10, 1988, Labor issued its determination that the workers of Permian Corp. were not eligible to apply for adjustment assistance. This determination was based on Labor's finding that the workers of Permian Corp. were not engaged in the exploration or drilling for oil or natural gas.

Issue

Were the former employees of Permian Corp. eligible for trade adjustment benefits under the Trade Act of 1974?

Rule

Under section 223 of the Trade Act, the Secretary of Labor must determine if a worker group meets the eligibility requirements set forth in section 222, which includes being engaged in exploration or drilling for oil or natural gas.

Under section 223 of the Act, Labor must determine whether the petitioning group meets the eligibility requirements set forth in section 222 of the Act.

Analysis

The court analyzed the facts and determined that the plaintiffs did not meet the specific eligibility requirements outlined in the Trade Act. The Secretary of Labor's finding that Permian Corp. was not engaged in exploration or drilling for oil or natural gas was supported by substantial evidence. The court emphasized that the legislative history of the 1988 amendment intended to apply only to workers directly involved in oil extraction activities.

The court finds that Labor did not err when it determined that the workers of Permian Corp. did not fall within the specific category of workers contemplated by the amendment.

Conclusion

The court affirmed the Secretary of Labor's determination that the plaintiffs were ineligible for trade adjustment benefits, concluding that their layoffs did not meet the statutory requirements.

Accordingly, the court affirms Labor's determination that plaintiffs are ineligible for trade adjustment benefits.

Who won?

The United States prevailed in the case because the court upheld the Secretary of Labor's determination that the plaintiffs did not qualify for trade adjustment benefits under the specific eligibility criteria.

The court disagrees with plaintiffs' argument, and finds Labors' determination denying eligibility to be supported by substantial evidence.

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