DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-53,394

KLEAR KNIT, INC.
DBA WALES FABRIC
GASTONIA, NORTH CAROLINA

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of
1974, as amended (19 USC 2273), the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
The investigation was initiated on October 29, 2003 in
response to a petition filed on behalf of workers at Klear
Knit Inc., dba Wales Fabrics, Gastonia, North Carolina.
Workers at the subject firm were engaged in sales of knit
fabrics.
The investigation revealed that the petitioning
workers of this firm or subdivision do not produce an
article within the meaning of Section 222 of the Act. The
Department of Labor has consistently determined that the
performance of services does not constitute production of
an article, as required by Section 222 of the Trade Act of
1974, and this determination has been upheld in the U.S.
Court of Appeals.
Workers at the firm or subdivision may be certified
only if their separation was caused importantly by a
reduced demand for their services from a parent firm, a
firm otherwise related to their firm by ownership, or a
firm related by control. Additionally, the reduction in
demand for services must originate at a production facility
whose workers independently meet the statutory criteria for
certification, and the reduction must directly relate to
the product impacted by imports. These conditions have not
been met for workers at this facility.
Conclusion
After careful review, I determine that all workers of
Klear Knit Inc., dba Wales Fabrics, Gastonia, North
Carolina are denied eligibility to apply for adjustment
assistance under Section 223 of the Trade Act of 1974.

Signed in Washington, D. C. this 18th day of November 2003.

/s/ Richard Church
_____________________________
RICHARD CHURCH
Certifying Officer,
Division of
Trade Adjustment Assistance