DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,780

DIRECT SOURCE INDUSTRIES
SAN FRANCISCO, CALIFORNIA

Notice of Revised Determination
on Reconsideration

By letter dated April 10, 2006, a petitioner requested
administrative reconsideration regarding the Department’s
Negative Determination Regarding Eligibility to Apply for Worker
Adjustment Assistance, applicable to the subject firm. The
determination was issued on March 3, 2006. On March 24, 2006,
the Notice of determination was published in the Federal Register
(71 FR 14954). The denial was based on the Department’s finding
that the workers do not produce an article or support a domestic
production facility.
In the request for reconsideration, the petitioner asserts
that, prior to the company’s closure in October 2005, the workers
were engaged in the production of garments (women’s apparel).
During the reconsideration investigation, a company official
stated that the subject workers were engaged in various functions
(cut, inspected, washed, and pressed etc.) related to the
production of garments. Based on this information, the
Department determines that the subject workers were engaged in
the production of garment producers (women’s and girls’ tops).

The investigation also revealed that aggregate U.S. imports
of women’s and girls tops increased significantly during the
twelve month period ended June 2005 over the corresponding twelve
month period ended June 2004 period. The ratio of aggregate
United States imports of women’s and girls’ tops to United States
shipments was well over 800 percent in 2004. The ratio increased
significantly during the twelve month period ending June 2005.
The investigation further revealed that sales, production
and employment at the subject plant declined during the relevant
period.
In accordance with Section 246 the Trade Act of 1974
(26 USC 2813), as amended, the Department 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, as amended, 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 increases of
imports of articles like or directly competitive with women’s
apparel produced by Direct Source Industries, San Francisco,
California, contributed importantly to the total or partial
separation of workers and to the decline in sales or production
and at that firm or subdivision. In accordance with the
provisions of the Act, I make the following certification:
"All workers of Direct Source Industries, San Francisco,
California, who became totally or partially separated from
employment on or after February 2, 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, as amended."
Signed in Washington, D.C. this 17th day of May 2006.

/s/ Elliott S. Kushner

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


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-58,780

DIRECT SOURCE INDUSTRIES
SAN FRANCISCO, CALIFORNIA

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 investigation was initiated on February 3, 2006 in
response to a petition filed on behalf of workers of Direct Source
Industries, San Francisco, California. The workers of the subject
facility were non-production employees, engaged in apparel
contracting services. These services involved receiving orders from
customers, then locating and drawing contracts with unaffiliated
firms to produce the orders.
The investigation revealed that Direct Source Industries, San
Francisco, California 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.
The workers of the subject firm do not support a firm or
appropriate subdivision that produces an article domestically and
thus the worker group can not be considered import impacted or
affected by a shift in production of an article.
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 of Direct Source
Industries, San Francisco, California 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 3rd day of March 2006

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