DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,569

OBG DISTRIBUTION COMPANY, LTD.
CELINA, TENNESSEE

Notice of Negative Determination
on Reconsideration

On April 14, 2006, the Department issued an Affirmative
Determination Regarding Application for Reconsideration for the
workers and former workers of the subject firm. The notice was
published in the Federal Register on April 24, 2006 (71 FR
21043).
The petition for the workers of OBG Distribution Company,
Ltd., Celina, Tennessee engaged in laundry research and
development services on various pieces of fabric swatches for
apparel was denied because the petitioning workers did not
produce an article within the meaning of Section 222 of the Act.
The company official filed a request for reconsideration in
which the petitioner provided additional information regarding
the interpretation of work performed at the subject facility and
further conveyed that workers of the subject firm produced a
domestic article through a wash process that “must be approved
before manufacturing facilities can produce garments for
production”. The petitioner further outlines the stages of the
research and development process of developing the laundering
standards and samples for the manufacturing facilities. The
petitioner concludes that because the subject firm is responsible
for developing Quality Standards for OshKosh production
facilities and workers physically perform cutting and laundering
of samples and swatches, workers of the subject firm should be
considered engaged in production of articles.
A company official was contacted for clarification in regard
to the nature of the work performed at the subject facility. The
official stated that there was no actual production at the
subject firm during the relevant time period. The workers
developed “shade cards and shade legs” through laundering
techniques, which showed future garment shade and finish. These
swatches were used as samples in garment laundering by the off-
shore laundry facilities. The official further stated workers of
the subject firm establish quality standards for all products
manufactured with OshKosh B’Gosh brand name, inspect the off-
shore sewing and laundry contractors who produce apparel, perform
Laundry research and development, through testing and
establishing laundry finishing standards and procedures, the
process which involves cutting and sewing of fabric swatches.
The sophistication of the work involved is not an issue in
ascertaining whether the petitioning workers are eligible for
trade adjustment assistance, but rather only whether they
produced an article within the meaning of section 222 of the
Trade Act of 1974.
The investigation on reconsideration revealed that workers
of OBG Distribution Company, Ltd., Celina, Tennessee do not
produce articles, but rather support production of articles at
other affiliated facilities. Establishing quality standards for
garment manufacturing is not considered production of an article
within the meaning of Section 222 of the Trade Act of 1974.
Cutting and sewing of fabric at the subject firm is incidental to
the research and development process of the laundering
techniques, which occurs at the subject facility. Workers of the
subject firm do not produce an article, but rather support
production of articles. Furthermore, all production of articles
that workers of the subject firm support occurs at foreign
facilities, thus workers of the subject firm support off-shore
production.
The investigation on reconsideration supported the findings of
the primary investigation that the petitioning group of workers did
not produce an article.
Conclusion
After reconsideration, I affirm the original notice of
negative determination of eligibility to apply for worker
adjustment assistance for workers and former workers of OBG
Distribution Company, Ltd., Celina, Tennessee.

Signed at Washington, D.C. this 11th day of May, 2006.

/s/ Elliott S. Kushner


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