DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,637

CAROLINA MILLS, INC.
PLANT NO. 9
VALDESE, NORTH CAROLINA

Notice of Revised Determination
on Reconsideration

By letter dated March 28, 2006, a company official requested
administrative reconsideration regarding the Department’s
Negative Determination Regarding Eligibility to Apply for Worker
Adjustment Assistance, applicable to workers of the subject firm.
The Notice of Affirmative Determination Regarding Application for
Reconsideration was issued on April 21, 2006, and was published
in the Federal Register on May 5, 2006 (71 FR 26565).
During the reconsideration investigation, the Department
confirmed that the subject firm was a supplier to a company
certified for Trade Adjustment Assistance and that the loss of
the business by that company contributed importantly to the
workers’ separations at the subject firm. This customer was one
of the subject firm’s major declining customers and was certified
based on a shift of production to Honduras.
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 information obtained in the
reconsideration investigation, I determine that workers of the
subject firm 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 Carolina Mills, Inc., Plant No. 9, Valdese,
North Carolina, who became totally or partially separated
from employment on or after January 17, 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 are eligible to apply for alternative
trade adjustment assistance under Section 246 of the Trade
Act of 1974."
Signed in Washington, D.C. this 5th day of July 2006.
/s/ Elliott S. Kushner
_________________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,637

CAROLINA MILLS, INC.
PLANT NO. 9
VALDESE, NORTH CAROLINA

Negative Determinations 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 January 17, 2006, in
response to a petition filed by a company official on behalf of
workers of Carolina Mills, Inc., Plant No. 9, Valdese, North
Carolina. The workers are engaged in the commission dying and
finishing of fabric for apparel products.
The investigation determined that criteria (a)(2)(A)(I.C.) and
(a)(2)(B)(II.B.) have not been met for workers of the subject firm.
The investigation revealed that subject firm did not shift
commission dying and finishing of fabric to a foreign country, nor
did the subject firm import fabric that has been dyed and finished.
The Department of Labor surveyed the subject firm’s major
declining customers regarding their purchases of commission dyed
and finished fabric for apparel products during 2004 and 2005.
This survey determined that the customers did not increase import
purchases while reducing purchases from the subject firm during the
relevant period.
The petitioner asserts that Carolina Mills loss of business
with their major customers is attributable to increased imports of
apparel. The Department is required to examine imports of articles
that are like or directly competitive with those produced by the
workers’ firm. In this case, Carolina Mills is engaged in
commission dying and finishing of fabric. Imports of apparel
cannot be considered like or directly competitive with fabric.
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 workers of Carolina
Mills, Inc., Plant No. 9, Valdese, North Carolina are denied
eligibility to apply for adjustment assistance under Section 223 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 in Washington, D.C., this 24th day of February,

2006.

/s/ Linda G. Poole

______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance