DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-59,586

KLAUSSNER FURNITURE INDUSTRIES, INC.
LEWALLEN ROAD
ASHEBORO, NORTH CAROLINA

TA-W-59,586B
KLAUSSNER FURNITURE INDUSTRIES, INC.
2242 CARL DRIVE
ASHEBORO, NORTH CAROLINA

TA-W-59,586D
KLAUSSNER FURNITURE OF CALIFORNIA, INC.
A DIVISION OF
KLAUSSNER FURNITURE INDUSTRIES INC.
MENTONE, CALIFORNIA

Certifications Regarding Eligibility
To Apply for Worker Adjustment Assistance and
Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974 (19
USC 2273), as amended, the Department of Labor herein presents
the results of its investigation regarding certification of
eligibility to apply for worker adjustment assistance.
In order to make an affirmative determination and issue a
certification of eligibility to apply for Trade Adjustment
Assistance, the group eligibility requirements in either
paragraph (a)(2)(A) or (a)(2)(B) of Section 222 of the Trade Act
must be met. It is determined in this case that the requirements
of (a)(2)(A) of Section 222 have been met.
The investigation was initiated on June 20, 2006, in
response to a petition filed by a company official on behalf of
workers of Klaussner Furniture Industries, Inc., Lewallen Road,
Asheboro, North Carolina (TA-W-59,586), Klaussner Furniture
Industries, Inc., Carl Drive Asheboro, North Carolina (TA-W-
59,586B), and Klaussner Furniture of California, Inc., a division
of Klaussner Furniture Industries, Inc., Mentone, California (TA-
W-59,586D). The workers produce upholstered home furnishings.
The workers are separately identifiable by plant.
The investigation revealed that the firm is a vertically
integrated producer of upholstered home furniture. The firm
produces components parts and performs the final assembly of
upholstered home furnishings.
Workers at the Lewallen Road plant (TA-W-59,586), produce
components parts and pieces, cut and sew leather and fabric,
perform finishing, and the final assembly of the upholstered home
furnishings. This location also serves as the administrative
offices of Klaussner Furniture Industries, Inc.
Workers at the 2242 Carl Drive plant (TA-W-59,586B), produce
components parts and pieces, cut and sew fabric, perform
finishing, and the final assembly of upholstered home
furnishings.
Employment at the Klaussner Furniture Industries, Inc.
plants on Lewallen Road and 2242 Carl Drive in Asheboro, North
Carolina, declined from 2004 to 2005 and in January through June
2006 when compared to the same months of 2005.
Production of upholstered home furnishings by Klaussner
Furniture Industries, Inc., declined 2004 to 2005, and declined
in January through April 2006 over the corresponding 2005 period.
Company-wide imports of cut and sewn covers and upholstered
furniture increased during the relevant period.
The Klaussner Furniture of California, Inc. division of the
subject firm in Mentone, California, produces components parts
and pieces, cut and sew leather and fabric, perform finishing,
and final assembly of the upholstered home furnishings.
The investigation determined that employment and production
at the Mentone plant declined in the relevant period.
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 these cases that the requirements of Section 246
have been met.
A significant number of workers of 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 facts obtained in the
investigation, I determine that increases of imports of articles
like or directly competitive with upholstered home furnishings
produced by Klaussner Furniture Industries, Inc., Lewallen Road,
Asheboro, North Carolina (TA-W-59,586), Klaussner Furniture
Industries, Inc., 2242 Carl Drive, Asheboro, North Carolina (TA-
W-59,586B), and Klaussner Furniture of California Inc., a
division of Klaussner Furniture Industries, Inc., Mentone,
California (TA-W-59,586D), 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 Klaussner Furniture Industries, Inc.,
Lewallen Road, Asheboro, North Carolina (TA-W-59,586),
Klaussner Furniture Industries, Inc., 2242 Carl Drive,
Asheboro, North Carolina (TA-W-59,586B), and Klaussner
Furniture of California, Inc., a division of Klaussner
Furniture Industries Inc., Mentone, California (TA-W-
59,586D), who became totally or partially separated from
employment on or after June 16, 2005 through two years from
the date of certification are eligible to apply for
adjustment assistance 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."
Signed in Washington, D.C., this day of July, 2006


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



Findings of the Investigation

BUSINESS CONFIDENTIAL

TA-W-59,586A

KLAUSSNER FURNITURE INDUSTRIES, INC.
220 BUSINESS SOUTH
ASHEBORO, NORTH CAROLINA

TA-W-59,586C

KLAUSSNER FURNITURE INDUSTRIES, INC.
CANDOR, NORTH CAROLINA

TA-W-59,586E

KLAUSSNER FURNITURE INDUSTRIES, INC.
STAR, NORTH CAROLINA

TA-W-59,586F

GOLDEN OAKS UPHOLSTERY, INC.
A DIVISION OF KLAUSSNER FURNITURE, INC.

Determination and Basis
TA-W-59,586A D-1 No employment
decline
TA-W-59,586C D-1 No employment
decline
TA-W-59,586E D-1 No employment
decline
TA-W-59,586F D-1 No employment
decline

Previous Determination: TA-W-59,586A TA-W-41,907A
TA-W-59,586C TA-W-41,907L
TA-w-59,586E TA-W-41,907 K
All certified on October 23, 2002


Number of Workers Affected:
TA-W-59,586A 4
TA-W-59,586C 17
TA-W-59,586 E 1
TA-W-59,586 F 0

Total Number of Workers:
TA-W-59,586A 209
TA-W-59,586C 695
TA-W-59,586E 43
TA-W-59,586F 191

Petitioner: COMPANY OFFICIAL

Product: Upholstered home furnishings

SIC: 2519

RELEVANT DATES:
Institution Date: 06/20/2006
Petition Date: 06/16/2006
Impact Date: 06/16/2006


File: S:\ONR\TRADE\Case\T1\59,586

Investigator: Caroline A. Jhingory

Supporting Evidence
Klaussner Furniture Industries, Inc., 220 Business South
Asheboro, North Carolina (TA-W-59,586A), Klaussner Furniture
Industries, Inc.,, Candor, North Carolina, TA-W-59,586C),
Klaussner Furniture Industries, Inc.,, Star, North Carolina (TA-
W-59,586E) and Klaussner Furniture Industries, Inc.,, La Mirada,
California (TA-W-59,586F) are the subject firms of this
investigation. Workers at all firms are engaged in employment
activities related to the production of upholstered home
furnishings.

Klaussner Furniture Industries, Inc., 220 Business South
Asheboro, North Carolina (TA-W-59,586A)
The employment activities of workers at this firm location
include:
Warehouse:
Workers unload and place fabric and decorative trim into
inventory.
Other workers pull fabric and trim from inventory as needed for
each production schedule.
Roll Out:
Workers move materials to cutting area and spread on tables to
meet production ticket specifications.
Cutting:
Cutters ensure correctness of materials prior to cutting with the
aid of CNC technology.
Folding:
Folders assemble cut pieces into units that will be send to
sewing operations with in plant 3 and other KFI facilities as
indicated above.
Scanning and Loading:
Workers scan and load assembled units into containers for
delivery.
Miscellaneous:
Miscellaneous work is done by service workers throughout the
processes referred to above. The tasks will include moving
supplies and materials, ensuring quality of work performed,
keeping work area clean and safe, etc.
Lead workers, supervisors and the manager at this location are
present through out all parts of the process. Lead workers
ensure that materials needed are in place and that the production
schedule is being met. Supervisors and managers work to ensure
consistent compliance with operational and employment policies
and procedures in addition to working to improve systems.

During 2004 through 2005 employment declined by 1 worker.
January through June 2006 employment declined by 4 percent over
the corresponding 2005 period.

Since the workers are denied eligibility to apply for TAA, the
workers cannot be certified eligible for ATAA.

Klaussner Furniture Industries, Candor, North Carolina, (TA-W-
59,586C)
The employment activities of workers at this firm location
include:
Framing: Workers assemble the cut wooden parts to make the basic
frame. The cut wooden parts come from plant #28 at Highway 211,
Candor, NC.
Other workers attach springs, cardboard and decking to meet
specification.
Workers in this area also assembly mechanisms used in motion
product (recliners).
Folders: Workers fold cut pieces in the proper order as needed
for assembly in sewing. These cut pieces come from domestic (KFI
plant 3 and 20) and off shore (outside vendors) production.
These folded units are then sent to the sewing departments in
plants in Asheboro and Candor, NC, Bruce, MS, and La Mirada, CA
for further processing.
Sewing: Workers are responsible for subassembly of parts that
will go into the cover or cushions of the finished piece (sofa,
loveseat, chair, ottoman, chaise chair, sleeper sofa). An
example of subassembly is construction of skirts, cushion
borders, and refolding of units prior to distribution to cover or
cushion sewers.
Other workers are responsible for assembly of cover, attached and
loose cushions for upholstered furniture. Workers sew parts in
each unit to specification. The sewn unit is then sent through
the assembly department to be put with a completed frame for
further assembly in the upholstery department.
Components for the cover and cushions, are cut domestically at
KFI plants 3 and 20, or off-shore by another vendor.
Assembly: Workers put all needed parts (fiber, cover, frame,
etc.) together in preparation for the upholsterer.
Upholstery: Workers apply the fiber, cover and any other parts to
each frame to meet specification to complete the basic unit.
Some subassembly of panels is also done in this department.
Cushions: Workers fill cushions with solid fiber cores or blown
fiber. Other workers will deliver cushions to final finish area
to put with correct pieces.
Final Finish: Workers will assure complete assembly of all parts
and do final quality check off. Other workers will wrap to
customer specification.
Miscellaneous: Miscellaneous work is done by service workers
throughout the processes referred to above. The tasks will
include moving supplies and materials, ensuring quality of work
performed, keeping work area clean and safe, etc.
Trainers, lead workers, supervisors and managers are also present
through out all parts of the process of building products to meet
the customers orders. Trainers work mainly in sewing and
upholstery with new employees and new styles. Lead workers
ensure that materials needed are in place and that the production
schedule is being met. Supervisors and managers work to ensure
consistent compliance with operational and employment policies
and procedures in addition to working to improve systems.

Employment declined by 5 percent during 2004 through 2005.
January through June 2006 employment increased by 2 percent over
the corresponding 2005 period.

Since the workers are denied eligibility to apply for TAA, the
workers cannot be certified eligible for ATAA.

Klaussner Furniture Industries, Inc.,Star, North Carolina (TA-W-
59,586E)
The employment activities of workers at this firm location
include:

Workers at this location cut wooden frame parts for use in the
frame building operations for the firm's facility in Candor,
North Carolina and the firm's facility located at 2242 Carl Drive
Asheboro, North Carolina.

Workers run a variety of wooden cutting equipment. The parts are
packaged for delivery to frame building operations in Asheboro
and Candor, NC.

Employment declined by two workers during 2004 through 2005.
During January to June 2006 employment remained at 43 workers
over the corresponding 2005 period.

Since the workers are denied eligibility to apply for TAA, the
workers cannot be certified eligible for ATAA.

Golden Oaks Upholstery, Inc., a division of Klaussner Furniture
Industries, Inc., La Mirada, California (TA-W-59,586F)
The employment activities of workers at this location include:
Framing: Workers assemble the cut wooden parts to make the basic
frame. The cut wooden parts come from plant #28 at Highway 211,
Candor, NC.
Other workers attach springs, cardboard and decking to meet
specification.
Workers in this area also assembly mechanisms used in motion
product (recliners).
Folders: Workers fold cut pieces in the proper order as needed
for assembly in sewing. These cut pieces come from domestic (KFI
plant 3 and 20) and off shore (outside vendors) production.
These folded units are then sent to the sewing departments in
plants in Asheboro and Candor, NC, Bruce, MS, and La Mirada, CA
for further processing.
Sewing: Workers are responsible for subassembly of parts that
will go into the cover or cushions of the finished piece (sofa,
loveseat, chair, ottoman, chaise chair, sleeper sofa). An
example of subassembly is construction of skirts, cushion
borders, and refolding of units prior to distribution to cover or
cushion sewers.
Other workers are responsible for assembly of cover, attached and
loose cushions for upholstered furniture. Workers sew parts in
each unit to specification. The sewn unit is then sent through
the assembly department to be put with a completed frame for
further assembly in the upholstery department.
Components for the cover and cushions, are cut domestically at
KFI plants 3 and 20, or off-shore by another vendor.
Assembly: Workers put all needed parts (fiber, cover, frame,
etc.) together in preparation for the upholsterer.
Upholstery: Workers apply the fiber, cover and any other parts to
each frame to meet specification to complete the basic unit.
Some subassembly of panels is also done in this department.
Cushions: Workers fill cushions with solid fiber cores or blown
fiber. Other workers will deliver cushions to final finish area
to put with correct pieces.
Final Finish: Workers will assure complete assembly of all parts
and do final quality check off. Other workers will wrap to
customer specification.
Miscellaneous: Miscellaneous work is done by service workers
throughout the processes referred to above. The tasks will
include moving supplies and materials, ensuring quality of work
performed, keeping work area clean and safe, etc.
Trainers, lead workers, supervisors and managers are also present
through out all parts of the process of building products to meet
the customers orders. Trainers work mainly in sewing and
upholstery with new employees and new styles. Lead workers
ensure that materials needed are in place and that the production
schedule is being met. Supervisors and managers work to ensure
consistent compliance with operational and employment policies
and procedures in addition to working to improve systems.

Employment at the firm declined during 2004 through 2005 and
January through April 2006 over the corresponding 2005 period.
Both sales and production declined during 2004 through 2005.
However, it is expected that employment, sales and production of
the subject firm will increase upon consolidation with Klaussner
Furniture Industries, Inc., Mentone, California (TA-W-59,586D) in
August 2006.

Since the workers are denied eligibility to apply for TAA, the
workers cannot be certified eligible for ATAA.









DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-59,586A

KLAUSSNER FURNITURE INDUSTRIES, INC.
220 BUSINESS SOUTH
ASHEBORO, NORTH CAROLINA

TA-W-59,586C
KLAUSSNER FURNITURE INDUSTRIES, INC.
CANDOR, NORTH CAROLINA

TA-W-59,586E
KLAUSSNER FURNITURE INDUSTRIES, INC.
STAR, NORTH CAROLINA

TA-W-59,586F
GOLDEN OAKS UPHOLSTERY, INC.
A DIVISION OF KLAUSSNER FURNITURE INDUSTRIES, INC.
LA MIRADA, CALIFORNIA

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 June 20, 2006, in
response to a petition filed by a company official on behalf of
workers of Klaussner Furniture Industries, Inc., 220 Business
South, Asheboro, North Carolina (TA-W-59,586A), Klaussner
Furniture Industries, Inc., Candor, North Carolina (TA-W-
59,586C), Klaussner Furniture Industries, Inc., Star, North
Carolina (TA-59,586E), and Golden Oaks Upholstery, Inc., a
division of Klaussner Furniture Industries, Inc., La Mirada,
California (TA-W-59,586F). The workers are engaged in employment
activities related to the production of upholstered home
furnishings. The workers are separately identifiable by plant.
The investigation revealed that the firm is a vertically
integrated producer of upholstered home furniture. The firm
produces components parts and performs the final assembly of
upholstered home furnishings.
Workers at Klaussner Furniture Industries, Inc., 220 Business
South, Asheboro, North Carolina (TA-W-59,586A) assemble, cut,
warehouse and conduct inventory for fabrics used to produce
assembled furniture.
Workers at Klaussner Furniture Industries, Inc., Candor, North
Carolina (TA-W-59,586C) Workers at the Lewallen Road plant (TA-W-
59,586), produce components parts and pieces, sew leather and
fabric, perform finishing, and the final assembly of the
upholstered home furnishings.
Workers at Klaussner Furniture Industries, Inc., Star, North
Carolina (TA-59,586E) build wooden frames for upholstered
furniture.
Workers at Golden Oaks Upholstery, Inc., a division of
Klaussner Furniture Industries, Inc., La Mirada, California (TA-W-
59,586F), produces components parts and pieces, cut and sew leather
and fabric, perform finishing, and final assembly of the
upholstered home furnishings
The investigation revealed that criteria (a)(2)(A)(I.A.) and
(a)(2)(B)(II.A.) have not been met.
The investigation revealed that Klaussner Furniture
Industries, Inc., 220 Business South, Asheboro, North Carolina
(TA-W-59,586A), Klaussner Furniture Industries, Inc., Candor,
North Carolina (TA-W-59,586C), Klaussner Furniture Industries,
Inc., Star, North Carolina (TA-59,586E), and Golden Oaks
Upholstery, Inc., a division of Klaussner Furniture Industries,
Inc., La Mirada, California (TA-W-59,586F), did not separate or
threaten to separate a significant number or proportion of
workers as required by Section 222 of the Trade Act of 1974.
Significant number or proportion of the workers in a firm or
appropriate subdivision means at least three workers in a
workforce of fewer than 50 workers, five percent of the workers
in a workforce of over 50 workers, or at least 50 workers.
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 assis-
tance (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 Klaussner
Furniture Industries, Inc., 220 Business South, Asheboro, North
Carolina (TA-W-59,586A), Klaussner Furniture Industries, Inc.,
Candor, North Carolina (TA-W-59,586C), Klaussner Furniture
Industries, Inc., Star, North Carolina (TA-59,586E), and Golden
Oaks Upholstery, Inc., a division of Klaussner Furniture
Industries, Inc., La Mirada, California (TA-W-59,586F), 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 31st day of July, 2006


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