Petitioner Type: Company
Impact Date: 07/30/2005
Filed Date: 09/23/2005
Most Recent Update: 10/21/2005
Determination Date: 10/21/2005
Expiration Date: 12/12/2007
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-58,013
SPECTRUM YARNS, INC.
KINGS MOUNTAIN, NORTH CAROLINA
Notice of Revised Determination
on Reconsideration
By application of November 8, 2005 a company official requested administrative reconsideration of the Department's negative determination regarding eligibility for workers and former workers of the subject firm to apply for Trade Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance (ATAA). The denial notice was signed on October 21, 2005 and published in the Federal Register on November 9, 2005 (70 FR 68099).
The TAA petition, filed on behalf of workers at Spectrum Yarns, Inc., Kings Mountain, North Carolina engaged in production of dyed yarns was denied because criteria 3(A) and 3(B) were not met. The negative determination was based on the findings that job losses at the subject firm were not attributed to the subject firm losing business as a supplier to a firm that shifted production abroad or was affected by increased imports.
In the request for reconsideration, the petitioner provided additional information regarding the products manufactured at the subject facility. Upon further investigation on reconsideration, it was revealed that workers of the subject firm produce the spun polyester poly blend dyed yarn; they are separately identifiable from other workers of the subject firm. It was further revealed that employment and sales of the spun polyester poly blend dyed yarn decreased during the relevant time period.
The company official provided a list of the subject firm’s customers, and requested an investigation of a secondary impact on the subject firm as an upstream supplier in the textile industry. A review of the new facts has determined that the workers of the subject firm may qualify as eligible for TAA on the basis of a secondary upstream supplier impact.
Having conducted an investigation of subject firm workers on the basis of secondary impact, it was revealed that Spectrum Yarns, Inc., Kings Mountain, North Carolina supplied spun polyester poly blend dyed yarn that were used in the production of textile fabrics and other textile products, and a loss of business with domestic manufacturers (whose workers were certified eligible to apply for adjustment assistance) contributed importantly to the workers separation or threat of separation.
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 assistance (ATAA) for older workers.
In order for the Department to issue a certification of eligibility to apply for ATAA, the group eligibility requirements of Section 246 of the Trade Act must be met. The Department has determined in this case that the requirements of Section 246 have been met.
A significant number of workers at the firm are age 50 or over and possess skills that are not easily transferable. Competitive conditions within the industry are adverse.
Conclusion
After careful review of the facts obtained in the investigation, I determine that workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina engaged in production of spun polyester poly blend dyed yarn qualify as adversely affected secondary workers under Section 222 of the Trade Act of 1974, as amended. In accordance with the provisions of the Act, I make the following certification:
"All workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina engaged in production of spun polyester poly blend dyed yarn, who became totally or partially separated from employment on or after July 30, 2005 through two years from the date of this certification, are eligible to apply for adjustment assistance under Section 223 of the Trade Act of 1974” and
“All workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina who became totally or partially separated from employment on or after September 19, 2004, through two years from the date of this certification, are eligible to apply for alternative trade adjustment assistance under Section 246 of the Trade Act of 1974.”
Signed at Washington, D.C., this 12th day of December, 2005
/s/ Linda G. Poole
_______________________
LINDA G. POOLE Certifying Officer, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-58,013
SPECTRUM YARNS, INC.
KINGS MOUNTAIN, 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 September 23, 2005, in response to a petition filed by a company official on behalf of workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina. The workers produce dyed yarns.
The investigation revealed that criteria 3(A) and 3(B) have 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.
Spectrum Yarns has not experienced any sales or production declines in any period. In addition, firms that are affected by imports and to whom the subject firm sold dyed yarns represent a very minor portion of overall sales. Any loss of business with these firms did not contribute importantly to worker separations.
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 assistance (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 of the facts obtained in the investigation, I determine that all workers covered by this petition of Spectrum Yarns, Inc., Kings Mountain, 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 21st day of October 2005.
/s/ Richard Church
__ RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance
Employment and Training Administration
TA-W-58,013
SPECTRUM YARNS, INC.
KINGS MOUNTAIN, NORTH CAROLINA
Notice of Revised Determination
on Reconsideration
By application of November 8, 2005 a company official requested administrative reconsideration of the Department's negative determination regarding eligibility for workers and former workers of the subject firm to apply for Trade Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance (ATAA). The denial notice was signed on October 21, 2005 and published in the Federal Register on November 9, 2005 (70 FR 68099).
The TAA petition, filed on behalf of workers at Spectrum Yarns, Inc., Kings Mountain, North Carolina engaged in production of dyed yarns was denied because criteria 3(A) and 3(B) were not met. The negative determination was based on the findings that job losses at the subject firm were not attributed to the subject firm losing business as a supplier to a firm that shifted production abroad or was affected by increased imports.
In the request for reconsideration, the petitioner provided additional information regarding the products manufactured at the subject facility. Upon further investigation on reconsideration, it was revealed that workers of the subject firm produce the spun polyester poly blend dyed yarn; they are separately identifiable from other workers of the subject firm. It was further revealed that employment and sales of the spun polyester poly blend dyed yarn decreased during the relevant time period.
The company official provided a list of the subject firm’s customers, and requested an investigation of a secondary impact on the subject firm as an upstream supplier in the textile industry. A review of the new facts has determined that the workers of the subject firm may qualify as eligible for TAA on the basis of a secondary upstream supplier impact.
Having conducted an investigation of subject firm workers on the basis of secondary impact, it was revealed that Spectrum Yarns, Inc., Kings Mountain, North Carolina supplied spun polyester poly blend dyed yarn that were used in the production of textile fabrics and other textile products, and a loss of business with domestic manufacturers (whose workers were certified eligible to apply for adjustment assistance) contributed importantly to the workers separation or threat of separation.
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 assistance (ATAA) for older workers.
In order for the Department to issue a certification of eligibility to apply for ATAA, the group eligibility requirements of Section 246 of the Trade Act must be met. The Department has determined in this case that the requirements of Section 246 have been met.
A significant number of workers at the firm are age 50 or over and possess skills that are not easily transferable. Competitive conditions within the industry are adverse.
Conclusion
After careful review of the facts obtained in the investigation, I determine that workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina engaged in production of spun polyester poly blend dyed yarn qualify as adversely affected secondary workers under Section 222 of the Trade Act of 1974, as amended. In accordance with the provisions of the Act, I make the following certification:
"All workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina engaged in production of spun polyester poly blend dyed yarn, who became totally or partially separated from employment on or after July 30, 2005 through two years from the date of this certification, are eligible to apply for adjustment assistance under Section 223 of the Trade Act of 1974” and
“All workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina who became totally or partially separated from employment on or after September 19, 2004, through two years from the date of this certification, are eligible to apply for alternative trade adjustment assistance under Section 246 of the Trade Act of 1974.”
Signed at Washington, D.C., this 12th day of December, 2005
/s/ Linda G. Poole
_______________________
LINDA G. POOLE Certifying Officer, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-58,013
SPECTRUM YARNS, INC.
KINGS MOUNTAIN, 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 September 23, 2005, in response to a petition filed by a company official on behalf of workers of Spectrum Yarns, Inc., Kings Mountain, North Carolina. The workers produce dyed yarns.
The investigation revealed that criteria 3(A) and 3(B) have 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.
Spectrum Yarns has not experienced any sales or production declines in any period. In addition, firms that are affected by imports and to whom the subject firm sold dyed yarns represent a very minor portion of overall sales. Any loss of business with these firms did not contribute importantly to worker separations.
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 assistance (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 of the facts obtained in the investigation, I determine that all workers covered by this petition of Spectrum Yarns, Inc., Kings Mountain, 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 21st day of October 2005.
/s/ Richard Church
__ RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance