DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-52,676
DEFENDER SERVICES, INC.
WORKING AT PILLOWTEX PLANT #1
KANNAPOLIS, NORTH CAROLINA

TA-W-52,676A
DEFENDER SERVICES, INC.
WORKING AT PILLOWTEX PLANT #16
SALISBURY, NORTH CAROLINA

TA-W-52,676B
DEFENDER SERVICES, INC.
WORKING AT PILLOWTEX PLANT #6
CONCORD, NORTH CAROLINA

TA-W-52,676C
DEFENDER SERVICES, INC.
WORKING AT PILLOWTEX CORPORATION
EDEN, NORTH CAROLINA

Notice of Negative Determination
Regarding Application for Reconsideration

By application of September 17, 2003, a petitioner requested
administrative reconsideration of the Department's negative
determination regarding eligibility for workers and former workers
of Pillowtex Plant #1, Kannapolis, North Carolina (TA-W-52,676),
Pillowtex Plant #16, Salisbury, North Carolina (TA-W-52,676A),
Pillowtex Plant #6, Concord, North Carolina (TA-W-52,676B) and
Pillowtex Plant, Eden, North Carolina (TA-W-52,676C) to apply for
Trade Adjustment Assistance (TAA). The decision notice was signed
on September 9, 2003 and published in the Federal Register on
October 10, 2003 (68 FR 58719).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or


(3) if in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.
The petition for the workers of Pillowtex Plant #1,
Kannapolis, North Carolina (TA-W-52,676), Pillowtex Plant #16,
Salisbury, North Carolina (TA-W-52,676A), Pillowtex Plant #6,
Concord, North Carolina (TA-W-52,676B) and Pillowtex Plant, Eden,
North Carolina (TA-W-52,676C) was denied because the “upstream
supplier” group eligibility requirement of Section 222(b) of the
Trade Act of 1974, as amended, was not met.
The “upstream supplier” requirement is fulfilled when the
workers’ firm (or subdivision) is a supplier to a firm that
employed a group of workers who received a certification of
eligibility to apply for trade adjustment assistance benefits and
such supply or production is related to the article that was the
basis for such certification. The workers of the subject firm did
not act as an upstream supplier to a trade certified firm.
The petitioner notes that other contractors have been
certified for trade adjustment assistance and thus appears to imply
that the petitioning workers should be eligible for trade
adjustment assistance as import impacted secondary workers.
When addressing the issue of import impact in a case of
secondary impact, the Department considers whether the subject firm
supplied a component in a product produced by a trade certified
firm. As the subject firm did not produce a component used in the
product of Pillowtex Corporation, the allegation of secondary
import impact is invalid.
Further, the subject firm does not produce an article within
the meaning of Section 222 of the Trade Act. Only in very limited
instances are service workers certified for trade adjustment
assistance, namely the worker separations must be caused by a
reduced demand for their services from a parent or controlling firm
or subdivision whose workers produce an article and who are
currently under certification for trade adjustment assistance. A
further investigation revealed that the workers of Pillowtex Plant
#1, Kannapolis, North Carolina (TA-W-52,676), Pillowtex Plant #16,
Salisbury, North Carolina (TA-W-52,676A), Pillowtex Plant #6,
Concord, North Carolina (TA-W-52,676B) and Pillowtex Plant, Eden,
North Carolina (TA-W-52,676C) do not meet the criteria to be
certified for trade adjustment assistance.










Conclusion
After review of the application and investigative findings, I
conclude that there has been no error or misinterpretation of the
law or of the facts which would justify reconsideration of the
Department of Labor's prior decision. Accordingly, the application
is denied.
Signed at Washington, D.C., this 3rd day of November, 2003.
/s/ Elliott S. Kushner
_______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance