DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-55,203

KAROLINA POLYMERS INC.
HICKORY, NORTH CAROLINA

Negative Determination Regarding Eligibility to Apply for
Worker Adjustment Assistance and Alternative Trade
Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974 (19 USC
2273), as amended, the Department of Labor herein presents the
results of an investigation regarding certification of eligibility
to apply for worker adjustment assistance as an adversely affected
secondary group.
An investigation was conducted in order to determine whether
the petitioning group of workers qualify as adversely affected
secondary workers as suppliers of component parts to a firm or
subdivision primarily affected by increased imports or a shift of
production abroad.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance,
the following group eligibility requirements under Section 222(b)
must be met:
(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers' firm (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) 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; and

(3) either-

(A) the workers' firm is a supplier and the component
parts it supplied for the firm (or subdivision) described
in paragraph (2) accounted for at least 20 percent of the
production or sales of the workers' firm; or

(B) a loss of business by the workers' firm with the firm
(or subdivision) described in paragraph (2) contributed
importantly to the workers' separation or threat of
separation.

The investigation was initiated on July 7, 2004, in response
to a petition filed by a company official on behalf of workers of
Karolina Polymers Inc., Hickory, North Carolina. The workers
produced unsupported vinyl film.
The investigation revealed that criterion (3)(B) has not
been met.
Petitioners allege that job losses were due to their firm
losing business as a supplier to a firm that shifted production
abroad or was affected by increased imports. The investigation
revealed, however, that was not the case.
The subject firm supplied components parts to a manufacturer
whose workers were covered under certification of eligibility to
apply for trade adjustment assistance; however, the loss of this
business was not a meaningful percentage of sales during the
relevant period of this investigation and therefore did not
contribute importantly to the separation of workers at the
subject firm.
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 covered
by this petition of Karolina Polymers Inc., Hickory, North
Carolina do not qualify as adversely affected secondary workers
and are denied eligibility to apply for adjustment assistance
under section 223(b) 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 at Washington, D.C., this 2nd day of August 2004.

/s/ Elliott S. Kushner

_ __
ELLIOT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance