DEPARTMENT OF LABOR
Employment and Training Administration

TA-W-53,419
ENCEE INC.
EDEN, NORTH CAROLINA

TA-W-53,419A
ENCEE INC.
KANNAPOLIS, NORTH CAROLINA

TA-W-53,419B
ENCEE INC.
SMITHFIELD, NORTH CAROLINA

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance and
Negative Determination Regarding Eligibility to
Apply for Alternative Trade 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 November 3, 2003 in
response to a petition filed on behalf of workers at Encee Inc.,
Eden, Kannapolis, and Smithfield, North Carolina. All are wholly
owned subsidiaries of Pillowtex Corporation. Workers at the
subject firm are engaged in employment related to retail sales of
towels, sheets and blankets.
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. Addition-
ally, 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.
In addition, in accordance with Section 246 the Trade Act of
1974 (26 USC 2813), as amended, the Department of Labor herein
presents the results of its investigation regarding certification
of eligibility to apply for alternative trade adjustment assis-
tance (ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the worker group must be certified
eligible to apply for trade adjustment assistance (TAA). Since
the workers are denied eligibility to apply for TAA, the workers
cannot be certified eligible for ATAA.


Conclusion
After careful review, I determine that all workers of Encee
Inc., Eden, Kannapolis, and Smithfield, North Carolina are denied
eligibility to apply for adjustment assistance under Section 223
of the Trade Act of 1974, and are also denied eligibility to
apply for alternative trade adjustment assistance under Section
246 of the Trade Act of 1974.
Signed in Washington, D. C. this 19th day of November 2003

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