DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-54,133

PEAVEY ELECTRONICS
PLANT 3
MERIDIAN, MISSISSIPPI

Negative Determinations 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 group eligibility
requirements for directly-impacted (primary) workers under Section
222(a) the Trade Act of 1974, as amended, can be satisfied in
either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the firm,
have become totally or partially separated, or are
threatened to become totally or partially separated;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly competitive
with articles produced by such firm or subdivision have
contributed importantly to such workers' separation or
threat of separation and to the decline in sales or
production of such firm or subdivision; or

II. Section (a)(2)(B) both of the following must be satisfied:

A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the
firm, have become totally or partially separated, or are
threatened to become totally or partially separated;
B. there has been a shift in production by such workers' firm
or subdivision to a foreign country of articles like or
directly competitive with articles which are produced by
such firm or subdivision; and

C. One of the following must be satisfied:
1. the country to which the workers' firm has shifted
production of the articles is a party to a free trade
agreement with the United States;
2. the country to which the workers' firm has shifted
production of the articles is a beneficiary country
under the Andean Trade Preference Act, African Growth
and Opportunity Act, or the Caribbean Basin Economic
Recovery Act; or
3. there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced
by such firm or subdivision.

The investigation was initiated on February 2, 2004 in
response to a petition filed on behalf of workers of Peavey
Electronics, Plant 3, Meridian, Mississippi. The workers produce
guitar amplifiers.
The investigation revealed that criteria I.C and II.B are not
met.
Company imports decreased in 2003 compared to 2002.

The Department conducted a survey of major customers of the
subject plant regarding their purchases of guitar amplifiers in
2002 and 2003. None of the respondents imported in the relevant
period.
The petitioners allege that job losses are due to the company
shifting production to China. Evidence developed in the course of
the investigation revealed that layoffs at the end of 2003 were the
result of the company's plan to shift production to China. Because
of inventory buildup in 2003, however, the company has not yet
begun production in China of products previously produced at the
subject plant.
Conclusion
After careful review, I determine that all workers of Peavey
Electronics, Plant 3, Meridian, Mississippi 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 March 2004.

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