William T. Wilson, Esquire

Established under the Trade Act of 1974,
the Trade Adjustment Assistance program benefits
workers whose employment is affected by increased imports

During the last week of August, 2002, the World Trade Organization adjudicated the United States to be liable to the European Union for up to four billion dollars in trade sanctions annually due to illegal tax breaks given to U.S. corporations with regard to their overseas operations. Although the government insists that this development will ultimately cause domestic corporations to be more competitive, elimination or modification of these tax breaks will be a reminder of the potential for dislocation of workers in a shrinking world of increasing competition from imported goods and services. These developments also present an appropriate occasion to remember available parachutes for workers whose employment may be affected by foreign competition or imports.

The U.S. Department of Labor administers the Trade Adjustment Assistance (TAA) and NAFTA Transitional Adjustment Assistance (NAFTA-TAA) programs, which benefit workers whose employment is affected by increased imports or who lose their jobs as the direct or indirect result of shifting production to Canada or Mexico. Any group of three or more employees of a single employer may apply for benefits. Applications may also be submitted on behalf of groups of three or more by their union or, in the case of the NAFTA-TAA, their employer. The differences between TAA and NAFTA-TAA, as well as application requirements are outlined below.

Applying for Benefits
Applications for both programs are available through the U.S. Department of Labor (DOL) or the Pennsylvania Office of Employment Security. The DOL makes the initial determination of eligibility for the group submitting the application. Once the DOL certifies a group as eligible, individuals may submit applications through the state agency, which administers the benefits thereafter. If the DOL turns down an application, there is a right of appeal to the DOL's Division of Trade Assistance. TAA denials can also be appealed to the U.S. Court of International Trade in New York. Denials of individual applications are subject to the same appeal system as unemployment compensation claims.

TAA Program Requirements & Benefits
A TAA application must meet three requirements:

1. The workers must be totally or partially laid off;
2. Sales or production has declined; and,
3. Increased imports have contributed significantly to the layoffs.

The benefits available include training for another job or career, remedial education, income support (known as trade adjustment allowances) for fifty-two weeks after unemployment compensation is used up, job search expenses, and relocation allowances.

NAFTA-TAA Program Requirements & Benefits
NAFTA-TAA requires that:

1. Workers have been totally or partially laid off;
2. Sales or production have declined; and,
3. Increased imports from Canada or Mexico have contributed significantly to the layoffs or there has been a shift in production to Canada or Mexico.

Benefits available under this program include on-site rapid response counseling services, off-site career counseling and job placement services, training in another job or career, income assistance, and job search, and relocation allowances. In our area, recent layoffs in the automotive parts industry have resulted in numerous dislocated employees receiving benefits under NAFTA-TAA.

MacElree Harvey
17 West Miner Street
Post Office Box 660
West Chester, PA 19381–0660
p | 610.436.0100
f | 610.430.7885
f | 610.429.4486
e | info@macelree.com