DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,948

CAROLINA MILLS, INC.
PLANT #3
NEWTON, NORTH CAROLINA

Notice of Negative Determination
Regarding Application for Reconsideration

By application dated April 19, 2006, a company official
requested administrative reconsideration of the Department's
negative determination regarding eligibility to apply for Trade
Adjustment Assistance (TAA), applicable to workers and former
workers of the subject firm. The denial notice was signed on
March 27, 2006 and published in the Federal Register on April 17,
2006 (71 FR 19755).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) if in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.


The petition for the workers of Carolina Mills, Inc., Plant
#3, Newton, North Carolina engaged in production of woven textile
fabrics was denied because the "contributed importantly" group
eligibility requirement of Section 222 of the Trade Act of 1974,
as amended, was not met, nor was there a shift in production from
that firm to a foreign country. The "contributed importantly"
test is generally demonstrated through a survey of the workers'
firm's customers. The survey revealed no imports of woven
textile fabrics during the relevant period. The subject firm did
not import woven textile fabrics nor did it shift production to a
foreign country during the relevant period.
The petitioner states that the affected workers lost their
jobs as a result of the negative impact of increased imports of
gloves on U.S. glove manufacturing. The petitioner alleges that
the major declining customer of the subject firm which
manufactures gloves decreased purchases of the woven textile
fabrics from Carolina Mills, Inc., Plant #3, Newton, North
Carolina because the customer has been importing the finished
glove products from abroad. The petitioner states that the
sales and production of woven textile fabrics at the subject firm
have been negatively impacted by increasing presence of foreign
imports of gloves on the market, thus workers of the subject firm
should be eligible for TAA.
In order to establish import impact, the Department must
consider imports that are like or directly competitive with those
produced at the subject firm. Imports of gloves cannot be
considered like or directly competitive with woven textile
fabrics produced by Carolina Mills, Inc., Plant #3, Newton, North
Carolina and imports of gloves are not relevant in this
investigation.
The petitioner also alleges that production of woven textile
fabrics has been negatively impacted by "problems with yarn
sourcing", a component in the manufacturing process of woven
fabrics. The petitioner provided the names of the yarn suppliers
who were negatively impacted either by the shift in production of
yarn abroad or increased imports of yarn.
The fact that subject firm's suppliers shifted their
production abroad or were import impacted is relevant to this
investigation if determining whether workers of the subject firm
are eligible for TAA based on the secondary downstream producer
of trade certified primary firm impact. For certification on the
basis of the workers' firm being a secondary downstream producer,
the subject firm must purchase articles for further production
from a trade certified firm which in its turn has been impacted
by shift in production to/increase in imports from Canada or
Mexico.
The investigation revealed that the subject firm had only
one supplier of yarn who was under TAA certification during the
relevant time period. However this supplier accounted for less
than one percent of subject firm's total purchases of yarn and a
loss of business with this company did not contribute importantly
to determine a negative trade impact on the subject firm. The
rest of the companies which supplied yarn to the subject firm are
not certified for TAA. Therefore, the subject firm workers are
not eligible under secondary impact as a downstream producer.
Conclusion
After review of the application and investigative findings,
I conclude that there has been no error or misinterpretation of
the law or of the facts which would justify reconsideration of
the Department of Labor's prior decision. Accordingly, the
application is denied.

Signed at Washington, D.C., day 22nd 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-58,948

CAROLINA MILLS, INC.
PLANT #3
NEWTON, 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 March 2, 2006 in response
to a petition filed by a company official on behalf of workers of
Carolina Mills, Inc., Plant #3, Newton, North Carolina. The
workers produce woven textile fabrics, predominantly used in glove
manufacture.
The investigation revealed that criteria (I.C) and (II.B) have
not been met.
The petitioner alleges that imports of gloves contributed
importantly to worker separations at the subject firm. Gloves,
however, cannot be considered as a basis for certification of
eligibility under the Trade Act of 1974. Only fabric like or
directly competitive with fabric produced by the subject firm can
be considered in making such determinations.
The investigation revealed that there were no company imports
of textile fabrics, nor was there a shift in production from Plant
#3 at Newton, North Carolina to a foreign country during the period
under investigation.
The Department of Labor surveyed the subject firm's major
customers regarding their purchases of textile fabrics in 2004,
2005 and January 2006. The survey revealed no imports in the
relevant periods.
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 Carolina
Mills, Inc., Plant #3, Newton, North Carolina are denied eligi-
bility 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 27th day of March, 2006

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