DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-61,348

NORTECH SYSTEMS, INC.
BEMIDJI, MINNESOTA

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 April 20, 2007 in response
to a petition filed by the state trade coordinator on behalf of
workers of Nortech Systems, Inc., Bemidji, Minnesota. The workers
produce wire harnesses and cable assemblies used in medical
applications.
Workers at the subject firm were previously certified as
eligible to apply for Trade Adjustment Assistance on May 20, 2005
(TA-W-56,961). That certification expired on May 20, 2007.
This investigation revealed that criteria (a)(2)(A)(I.B), and
(a)(2)(B)(II.B) have not been met. The investigation revealed that
sales and production of wire harnesses and cable assemblies at the
subject firm increased in 2006 compared with 2005, and also
increased in January through March 2007 compared with the same
period in 2006.
The investigation further revealed that the subject firm has
not shifted production of wire harnesses and cable assemblies from
the Bemidji, Minnesota plant to a foreign country. Rather, the
transfer of production occurred from a Nortech Systems facility in
Mexico to a similar Nortech Systems plant in China.
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 of the facts obtained in the investi-
gation, I determine that all workers of Nortech Systems, Inc.,
Bemidji, Minnesota 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 29th day of May, 2007

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