DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-60,270

BEARD HOSIERY COMPANY, INC.
LENOIR, NORTH CAROLINA

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 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 October 20, 2006 in
response to a petition filed by a company official on behalf of
workers of Beard Hosiery Company, Inc., Lenoir, North Carolina.
Workers at the subject firm manufacture greige sport socks.
Workers are not separately identifiable by product.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) have not been met.
The subject firm did not shift production of greige sport
socks to a foreign country, nor did it import greige sport socks
during 2004, 2005, or January through October 2006.
The United States Department of Labor conducted a survey of
the subject firms major declining customer regarding their
purchases of greige sport socks during 2004, 2005, and January
through October 2006 over the corresponding 2005 period. The
survey revealed no imports of greige sport socks during the
relevant period.
An investigation was also conducted in order to determine
whether the petitioning group of workers qualify as adversely
affected secondary workers as suppliers of component parts to a
firm or subdivision primarily affected by increased imports or a
shift of production abroad.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance,
the following group eligibility requirements under Section 222(b)
must be met:
(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers' firm (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) that
employed a group of workers who received a certification
of eligibility to apply for trade adjustment assistance
benefits and such supply or production is related to the
article that was the basis for such certification; and

(3) either-

(A) the workers' firm is a supplier and the component
parts it supplied for the firm (or subdivision)
described in paragraph (2) accounted for at least 20
percent of the production or sales of the workers' firm;
or

(B) a loss of business by the workers' firm with the
firm (or subdivision) described in paragraph (2)
contributed importantly to the workers' separation or
threat of separation.

The investigation revealed that criterion (2) was not met.
The secondary investigation revealed that the subject firm
was not only a producer of greige sport socks, but was also a
supplier of greige sport socks to a finishing company, who
purchased the greige sport socks from the subject firm and
finished (i.e. sewing, coloring, bleaching, etc.) the sock into a
completed sock. That customer is not under an existing
certification, therefore the subject firm can not be considered
eligible for trade adjustment assistance (TAA) under a secondary
certification.
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 Beard Hosiery
Company, Inc., Lenoir, North Carolina, are denied eligibility to
apply for adjustment assistance under Section 223 of the Trade Act
of 1974.
I also determine that all workers covered by this petition of
Beard Hosiery Company, Inc., Lenoir, North Carolina, do not
qualify as adversely affected secondary workers 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 15th day of November 2006.


/s/Elliott S. Kushner
______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance