DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,485

RAWLINGS SPORTING GOODS COMPANY
A SUBSIDIARY OF K2, INC.
LICKING, MISSOURI

Notice of Revised Determination
on Reconsideration

On February 2, 2006, the Department issued an Affirmative
Determination Regarding Application for Reconsideration for the
workers and former workers of Rawlings Sporting Goods Company, A
Subsidiary of K2, Inc., Licking, Missouri. The Department’s
Notice was published in the Federal Register on February 10, 2006
(71 FR 7076).
The initial negative determination was based on the findings
that the subject worker group does not produce an article within
the meaning of Section 222(a)(2) of the Trade Act and do not
support a domestic production facility that is import-impacted.
Workers produced graphic art design for apparel manufactured at
affiliated facilities in Costa Rica and Washington, Missouri.
Workers were separated when the subject facility closed in 2005.
In the request for reconsideration, the petitioner alleged
that art design production shifted to Costa Rica in 2005.
During the reconsideration investigation, the Department
contacted a company official who stated that art design shifted
to Costa Rica in 2005.
The investigation also revealed that all criteria have been
met in regard to Alternative Trade Adjustment Assistance (ATAA).
A significant number or proportion of the worker group are age
fifty years or over and workers possess skills that are not
easily transferable. Competitive conditions within the industry
are adverse.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I conclude that a shift of art design production
to Costa Rica contributed importantly to worker separations at
the subject firm.
In accordance with the provisions of the Act, I make the
following certification:
"All workers of Rawlings Sporting Goods Company, A
Subsidiary of K2, Inc., Licking, Missouri, who became
totally or partially separated from employment on or after
December 5, 2004, 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
are also eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974.”
Signed in Washington, D.C. this 27th day of March 2006.

/s/ Elliott S. Kushner

_______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-58,485

RAWLINGS SPORTING GOODS COMPANY
A SUBSIDIARY OF K2 INC.
LICKING, MISSOURI

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, 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 December 8, 2005 in
response to a petition filed on behalf of workers of Rawlings
Sporting Goods Company, a subsidiary of K2 Inc., Licking, Missouri.
The workers provide quality control services and computer graphic
art design via electronic files on apparel manufactured at
affiliated facilities in Costa Rica and Washington, Missouri.
The subject facility was certified for trade adjustment
assistance on December 16, 2002 (TA-W-50,065) based on a transfer
of production to Costa Rica. That certification expired December
16, 2005.
This investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) have not been met.
The investigation revealed that Rawlings Sporting Goods
Company, Licking, Missouri does not produce an article within the
meaning of Section 222(a)(2) of the Act. In order to be considered
eligible to apply for adjustment assistance under Section 223 of
the Trade Act of 1974, the worker group seeking certification (or
on whose behalf certification is being sought) must work for a
"firm" or appropriate subdivision that produces an article and
there must be a relationship between the workers' work and the
article produced by the workers' firm or appropriate subdivision.
A portion of the work of the workers of the subject firm supports a
division that produces an article abroad, rather than domestically,
and to that extent the worker group cannot be considered import
impacted or affected by a shift in production of an article. In
addition, the Washington, Missouri division for which the Licking
facility also provides graphic design work experienced increasing
sales and production in 2005 compared with 2004, and thus the
subject facility did not support a firm or subdivision certifiable
for adjustment assistance.
The separations of workers at the subject facility are
directly attributable to the company’s decision to outsource its
graphic design support services to Costa Rica.
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, I determine that all workers of Rawlings
Sporting Goods Company, a subsidiary of K2 Inc., Licking, Missouri
are denied eligibility to apply for adjustment assistance under
section 223 of the Trade Act of 1974, and are also denied
eligibility for alternative trade adjustment assistance under
Section 246 of the Trade Act of 1974.
Signed in Washington, D. C., this 27th day of December, 2005


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