DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-61,856

KLIPSCH AUDIO TECHNOLOGIES, LLC
INCLUDING ON-SITE LEASED WORKERS OF
SELECT STAFF
HOPE, ARKANSAS

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 July 23, 2007 in response
to a petition filed by the Workforce Services of the State of
Arkansas on behalf of workers at Klipsch Audio Technologies, LLC,
Hope, Arkansas. The workers produced cinema theater speakers and
high-end speakers during the relevant period. The workers are
not separately identifiable by product.
The investigation revealed that criteria Section
(a)(2)(A)(I.C.) and Section (a)(2)(B)(II.B.) have not been met.
The investigation revealed that the overwhelming majority of
the subject plant's cinema theater speakers are produced under
contractual agreement with major movie theater companies. Those
theaters are under contract and required to purchase cinema
theater speakers only from the subject firm. Therefore, customer
imports would not be a contributing factor as it relates to this
product.
The investigation also revealed that the subject plant
produced the same amount of high-end speakers annually and
therefore no declines in plant sales or production of that
product occurred during the relevant period.
The investigation further revealed that there were no
company imports like or directly competitive with cinema speakers
or high-end speakers, nor was plant production of these speakers
shifted to a foreign source 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 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, I determine that all workers of
Klipsch Audio Technologies, LLC, including on-site leased workers
of Select Staff, Hope, Arkansas 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 7th day of September 2007.


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