DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-61,850

SOUTHERN LOOM REED
GAFFNEY, SOUTH 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 July 20, 2007 in response
to a petition filed by a company official on behalf of workers of
Southern Loom Reed, Gaffney, South Carolina. The workers produce
loom reeds for apparel weaving machines and the subject firm was a
major producer of loom reeds.
The investigation revealed that criteria (I.C) and (II.B) have
not been met.
The investigation revealed that there were no company imports
of loom reeds for apparel weaving machines, nor was there a shift
in production from the Gaffney, South Carolina plant to a foreign
country during the period under investigation.
The Department of Labor surveyed the subject firm's major
customers regarding purchases of loom reeds for apparel weaving
machines in 2005, 2006, and January through July 2007 over the
corresponding 2006 period. The survey revealed no imports in the
relevant time period.
Furthermore, aggregate United States imports of reeds for
looms declined from 2005 to 2006 and continued to decline from
January through July 2007 over the corresponding 2006 period.
The petitioner appears to allege that due to a shift in
production by the domestic apparel industry to foreign locations
and increased apparel imports, there are fewer weaving machines
(looms) in the United States. Subsequently, there is a reduced
demand for loom reeds. As for the apparel imports, they are not
like or directly competitive with the loom reeds used in apparel
weaving machines. Furthermore, a loss of domestic sales of apparel
due to that industry shifting their production offshore cannot be a
basis for a justifying a loss of business by Southern Loom Reed in
accordance with the Trade Act.
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 Southern
Loom Reed, Gaffney, South 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 6th day of September, 2007.

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