DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-60,577

DIXIE REGENCY FOAM
DIVISION OF HICKORY SPRINGS MANUFACTURING COMPANY
HICKORY, 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
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 December 12, 2006, in
response to a petition filed on behalf of workers at Dixie Regency
Foam, a Division of Hickory Springs Manufacturing Company, Hickory,
North Carolina. The workers of the subject firm produced foam
cushions and fiber pillows. The workers are not separately
identifiable by product line.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) were not met.
The investigation revealed that the subject firm did not
increase its imports of foam cushions or fiber pillows from 2004 to
2005, nor during the period of January through November 2006 when
compared to the same period in 2005.
The Department of Labor surveyed the subject firm's major
declining customer regarding their purchases of foam cushions
during 2005 and 2006. The survey revealed no imports of foam
cushions during the relevant period.

The Department did not conduct a customer survey regarding
customer purchases of fiber pillows since there were no declines in
company sales and production of fiber pillows during the relevant
period.
Furthermore, the investigation revealed that the subject firm
did not shift production of its foam cushions and fiber pillows
abroad during the relevant period.
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 workers of Dixie
Regency Foam, a Division of Hickory Springs Manufacturing Company,
Hickory, North Carolina, 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 January, 2007


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