DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,907

VAUGHAN FURNITURE COMPANY, INC.
E.C. DODSON PLANT
GALAX, VIRGINIA

TA-W-58,907A

VAUGHAN FURNITURE COMPANY, INC.
B.C VAUGHAN PLANT
GALAX, VIRGINIA

Determinations Regarding Eligibility
To Apply For Worker Adjustment Assistance and
Negative Determination Regarding Eligibility To Apply For
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 February 24, 2006, in
response to a petition filed by a company official on behalf of
workers of Vaughan Furniture Company, Inc., E.C. Dodson Plant,
Galax, Virginia (TA-W-58,907) and Vaughan Furniture Company,
Inc., B.C. Vaughan Plant, Galax, Virginia (TA-W-58,907A). The
workers produce bedroom furniture. Workers are separately
identifiable by production location.
With respect to workers at Vaughan Furniture Company, Inc.,
E.C. Dodson Plant, Galax, Virginia (TA-W-58,907) it is
determined that the requirements of (a)(2)(A) are met.
Production and employment at Vaughan Furniture Company,
Inc., E.C. Dodson Plant, Galax, Virginia (TA-W-58,907) declined
when the subject firm closed on March 3, 2006.
The Department of Labor surveyed the major declining
customers of Vaughan Furniture Company, Inc., E.C. Dodson Plant,
Galax, Virginia (TA-W-58,907) regarding their purchases of
bedroom furniture in 2004 and 2005. The survey revealed that
customers increased foreign purchases during relevant period.
With respect to workers at Vaughan Furniture Company, Inc.,
B.C. Vaughan Plant, Galax, Virginia (TA-W-58,907A), it is
determined that determined that criteria (a)(2)(A)(I.B.) and
(a)(2)(B)(II.B.) have not been met.
The investigation revealed sales and production at Vaughan
Furniture Company, Inc., B.C. Vaughan Plant, Galax, Virginia
(TA-W-58,907A), increased from 2004 to 2005 and in January 2006
when compared with January 2005.
Vaughan Furniture Company, Inc., B.C. Vaughan Plant, Galax,
Virginia (TA-W-58,907A) did not shift production of bedroom
furniture to a foreign country during the period of this
investigation.
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 the case of workers of
Vaughan Furniture Company, Inc., E.C. Dodson Plant, Galax,
Virginia (TA-W-58,907), 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.
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 of Vaughan Furniture Company, Inc.,
B.C. Vaughan Plant, Galax, Virginia (TA-W-58,907A) 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 increases of imports of articles
like or directly competitive with bedroom furniture produced by
Vaughan Furniture Company, Inc., E.C. Dodson Plant, Galax,
Virginia (TA-W-58,907), contributed importantly to the total or
partial separation of workers and to the decline in sales or
production at that firm or subdivision.
In accordance with the provisions of the Act, I make the
following certification:
"All workers of Vaughan Furniture Company, Inc., E.C.
Dodson Plant, Galax, Virginia (TA-W-58,907), who became
totally or partially separated from employment on or after
February 24, 2005 through two years from the date of
certification are eligible to apply for adjustment assis-
tance 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;" and
I further determine that all workers of Vaughan Furniture
Company, Inc., B.C. Vaughan Plant, Galax, Virginia (TA-W-
58,907A) are denied eligibility to apply for trade adjustment
assistance under Section 223 of the Trade Act of 1974, and are
also denied eligibility to apply for alternative trade adjust-
ment assistance under Section 246 of the Trade Act of 1974.
Signed in Washington, D. C. this 24th day of March 2006

/s/Linda G. Poole
_______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance