The U.S. International Trade Commission on October 30, 2024, determined that aluminum extrusion imports from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates (UAE), and Vietnam do not injure domestic industry.
The Department of Commerce made preliminary affirmative determinations in the antidumping investigation in May 2024 finding that aluminum extrusions were “being, or are likely to be, sold in the United States at less than fair value (LTFV)” from the subject countries. In March 2024, Commerce issued a preliminary determination in the countervailing duty investigation finding that aluminum extrusions were being subsidized by the governments of China, Indonesia, Mexico, and Turkey. Preliminary dumping margins were set ranging from 0 to 376.85 percent, while preliminary subsidy rates were set at 0.19 percent to 169.66 percent.
The petitions calling for the imposition of additional duties were filed on October 4, 2023, by the U.S. Aluminum Extruders Coalition, which consists of 14 domestic aluminum extrusions producers, and the U.S. Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW). The 14 members of the Coalition are Alexandria Extrusion Company, APEL Extrusions, Bonnell Aluminum, Brazeway, Custom Aluminum Products, Extrudex Aluminum, International Extrusions, Jordan Aluminum Company, M-D Building Products Inc., Merit Aluminum Corporation, MI Metals, Pennex Aluminum, Tower Extrusions, and Western Extrusions.
AD and CVD orders on aluminum extrusions from China have been in place since 2011 with duty rates ranging from 32.79% to 33.28% and subsidy rates ranging from 8.02% to 374.15%. The new investigation, which has now ended with the Commission’s negative determination, expanded the scope under the existing orders to capture various additional types of aluminum extrusions.
The scope outlined that the investigations covered “aluminum extrusions, regardless of form, finishing, or fabrication, whether assembled with other parts or unassembled, whether coated, painted, anodized, or thermally improved. Under the scope, aluminum extrusions are shapes and forms, produced by an extrusion process, made from aluminum alloys having metallic elements corresponding to the alloy series designations published by the Aluminum Association commencing with the numbers 1, 3, and 6 (or proprietary equivalents or other certifying body equivalents).” With the negative determination from ITC, Commerce will not issue antidumping duty orders on the covered aluminum extrusions from the 14 countries or countervailing duties on aluminum extrusion imports from China, Indonesia, Mexico, and Turkey and all duties collected by the U.S. Customs and Border Protection will be refunded to importers.
Federal Judge Questions Overtime Rule
A federal judge in Texas raised questions regarding the US Department of Labor’s justification for raising the salary threshold in the new overtime rule. On November 8, 2024, U.S. District Judge Sean Jordan for the Eastern District of Texas held a summary judgment hearing in the case challenging the rule brought by the State of Texas along with several business groups.
During the hearing, Judge Jordan appeared skeptical of DOL’s justification for raising the salary thresholds as well as the analysis of the data DOL used to determine the salary levels in the rule. “We’re talking about when is salary crossing the line and becoming predominate, and what are the metrics the department is using?” Judge Jordan questioned DOL during the hearing.
The rule, titled “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees,” which became effective on July 1, 2024, increased the standard salary level threshold for white-collar exemptions to overtime requirements under the Fair Labor Standards Act (FLSA) to $43,888 per year while the annual compensation threshold for highly compensated employees (HCE) increased to $132,964.
Starting January 1, 2025, the standard salary-level threshold will further increase to $58,656 per year, and the HCE threshold will rise to $151,164. Then beginning on July 1, 2027, and every three years after, the thresholds will automatically update to align with the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region, and the HCE total annual compensation threshold aligns with the annualized weekly earnings of the 85th percentile of full-time salaried workers nationally.
The challengers in the suit are asking the court to vacate the rule in its entirety. While Judge Jordan has not yet issued a decision regarding the ongoing viability of the overtime rule, it is expected that one will be made before the next threshold increase. While supporting a full ban on the rule, One Voice along with coalition partners has also signed onto a letter calling for an extension to May for the second overtime threshold increase, which is set to occur on January 1, 2025.
NLRB Overrules Precedent for Statements on the Impact of Unionization
In a decision on November 8, 2024, the National Labor Relations Board ruled that employer statements to workers regarding the impact of unionization may violate the National Labor Relations Act.
The 3-1 ruling in the case Siren Retail Corp. d/b/a Starbucks, 373 NLRB 135, overrules the 1985 Tri-Cast, Inc., 274 NLRB 377 decision, which said most employer statements about the effects of unionization on the relationship between workers and management are lawful holding that “[t]here is no threat, either explicit or implicit, in a statement which explains to employees that, when they select a union to represent them, the relationship that existed between the employees and the employer will not be as before.” In the Siren Retail ruling the board determined that Tri-Cast went too far and had “erred in deeming categorically lawful nearly any employer statement to employees touching on the impact that unionization would have on the relationship between individual employees and their employer.” Instead, the Board will evaluate employer statements according to the 1969 Supreme Court decision in NLRB v. Gissel Packing Co, which mandates that to be deemed lawful, “employer predictions of negative impacts from unionization ‘must be carefully phrased on the basis of objective fact to convey an employer’s belief as to demonstrably probable consequences beyond [its] control.’ If such a prediction is not grounded in objective fact or predicts negative consequences that would result from the employer’s own actions, it is ‘no longer a reasonable prediction based on available facts but a threat of retaliation based on misrepresentation and coercion.’”
Final Outbound Investment Rule Issued
The Department of the Treasury released final regulations to implement President Biden’s Executive Order 14105 (Outbound Investment Order), establishing a framework for controls on U.S. outbound investments that raise national security concerns in or related to the People’s Republic of China as well as Hong Kong and Macau, in several technology sectors relevant to military, intelligence, surveillance, or cyber-enabled capabilities. The final rule, which was announced by Treasury on October 28 will be officially published in the Federal Register this week on November 15, 2024.
Under the new regulations, U.S. investments will either face outright prohibitions or will need to be reported within three specific areas related to national security: semiconductors and microelectronics; quantum information technologies; and certain artificial intelligence (AI) systems. In the realm of semiconductors and microelectronics, there are strict bans on specific fabrication and advanced packaging tools, as well as on the design and fabrication of certain advanced integrated circuits. However, designs, fabrications, or packaging of integrated circuits not specifically listed as prohibited will still require notification. When it comes to quantum information technologies, the development of quantum computers and the production of crucial components necessary for their creation are explicitly prohibited. The rule takes effect on January 2, 2025.