DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-63,420B

BERNHARDT FURNITURE COMPANY
PLANT 6/11
INCLUDING ON-SITE LEASED WORKERS OF THE MULBERRY GROUP
AND ACCUFORCE STAFFING SERVICES
LENOIR, NORTH CAROLINA

TA-W-63,420C

BERNHARDT FURNITURE COMPANY
PLANT 9
SHELBY, NORTH CAROLINA

Notice of Revised Determination
On Remand

On October 7, 2008, the U.S. Court of International Trade
granted the Department of Labor’s motion for voluntary remand
for further investigation in Former Employees of Bernhardt
Furniture Company v. United States, Court No. 08-00271.
A petition for Trade Adjustment Assistance (TAA) and
Alternative Trade Adjustment Assistance (ATAA) was filed by a
company official on behalf of workers and former workers of
Bernhardt Furniture Company (subject firm), Bernhardt Corporate
Office, Lenoir, North Carolina (TA-W-63,420), Bernhardt Central
Warehouse, Lenoir, North Carolina (TA-W-63,420A), Plant 6/11,
Lenoir, North Carolina (TA-W-63,420B), Plant 9, Shelby, North
Carolina (TA-W-63,420C), and Plant 10, Cherryville, North
Carolina (TA-W-63,420D).
Workers covered by TA-W-63,420 are engaged in activities in
support of company production and related operations. Workers
covered by TA-W-63,420A are engaged in distribution operations.
Plant 6/11 (TA-W-63,420B), Plant 9 (TA-W-63,420C), and Plant 10
(TA-W-63,420D) comprise the Upholstered Furniture Department.
Workers at these three facilities produce upholstered furniture
and are not separately identifiable by product line.
On June 13, 2008, the Department issued a determination
certifying workers and former workers at Plant 10, Cherryville,
North Carolina (TA-W-63,420D), based on increased reliance on
imports by the subject firm, and denying certification to
workers and former workers at the other locations (TA-W-63,420,
TA-W-63,420A, TA-W-63,420B, and TA-W-63,420C). The Department’s
Notice of determination was published in the Federal Register on
June 27, 2008 (73 FR 36576).
On July 17, 2008, a petitioner requested administrative
reconsideration on behalf of workers and former workers of
Bernhardt Furniture Company, Bernhardt Central Warehouse,
Lenoir, North Carolina (TA-W-63,420A). On August 1, 2008, the
Department issued a Notice of Negative Determination Regarding
Application for Reconsideration applicable to the worker group
covered by TA-W-63,420A. The Department’s Notice was published
in the Federal Register on August 7, 2008 (73 FR 46040).
No request for administrative reconsideration was filed on
behalf of worker groups covered by TA-W-63,420B or TA-W-63,420C.
By letter dated August 15, 2008, a subject firm official
requested that the U.S. Court of International Trade (USCIT)
review the negative determinations applicable to TA-W-63,420B
(Plant 6/11) and TA-W-63,420C (Plant 9).
The Department’s negative determination applicable to the
worker groups covered by TA-W-63,420B and TA-W-63,420C was based
on the Department’s findings that, for each location, the
subject firm did not separate or threaten to separate a
significant number or proportion of workers as required by
Section 222 of the Trade Act of 1974. Significant number or
proportion of the workers in a firm, or appropriate subdivision
thereof, means that at least three workers with a workforce of
fewer than 50 workers or five percent of the workers with a
workforce over 50 workers.
In the complaint, the Plaintiff stated that the three
facilities that comprise the Upholstered Furniture Department --
Plants 6/11, 9, and 10 – “operate as one continuous production
operation” and provided new information regarding sales and
production at the Upholstered Furniture Department. The
complaint also included documentation that indicate that the
subject firm did separate or threaten to separate a significant
number or proportion of workers at Plant 6/11 and Plant 9.
To apply for TAA, the group eligibility requirements under
Section 222(a) the Trade Act of 1974, as amended, must be met.
The group eligibility requirements can be satisfied in either
one of two ways:
I. Section (a)(2)(A) --
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; and
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) --

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; and
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; or
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.

During the remand investigation, the Department carefully
reviewed previously-submitted material and new information
provided by the subject firm regarding employment levels at
Plant 6/11 and Plant 9, the number of workers threatened with
separation at each location, sales and production levels of the
Upholstered Furniture Department, and import of articles like or
directly competitive with upholstered furniture produced by the
subject worker groups during the relevant period.
Upon further review of these facts, the Department has
determined that, during the relevant period, the subject firm
did separate or threaten to separate a significant number or
proportion of workers at Plant 6/11 and Plant 9; that sales and
production of upholstered furniture at Plant 6/11 and Plant 9
declined; and that the subject firm increased its reliance on
imports of articles like or directly competitive with those
produced at Plant 6/11 and Plant 9. Therefore, the Department
determines that the worker groups covered by TA-W-63,420B and
TA-W-63,420C have met the criteria set forth in Section
222(a)(2)(A).
In accordance with Section 246 the Trade Act of 1974 (26
USC 2813), as amended, the Department herein presents the
results of its investigation regarding certification of the
subject worker groups’ eligibility to apply for ATAA.
The Department has determined in this case that the group
eligibility requirements of Section 246 have been met.
A significant number of workers at the firm are age 50 or
over and possess skills that are not easily transferable.
Competitive conditions within the industry are adverse.
Conclusion
After careful review of the facts developed in the
remand investigation, I determine that there was a separation or
threat of separation of a significant number or proportion of
workers at Plant 6/11, Lenoir, North Carolina, and Plant 9,
Shelby, North Carolina, that there were sales and production
declines of upholstered furniture at Plant 6/11, Lenoir, North
Carolina, and Plant 9, Shelby, North Carolina, and that
increased imports of articles like or directly competitive with
upholstered furniture produced by the subject worker groups
contributed importantly to the decline in sales and production
of upholstered furniture and worker separations at Plant 6/11,
Lenoir, North Carolina, and Plant 9, Shelby, North Carolina.
In accordance with the provisions of the Act, I make the
following certification:




"All workers of Bernhardt Furniture Company, Plant 6/11,
Lenoir, North Carolina, including on-site leased workers
of the Mulberry Group and Accuforce Staffing Services,
(TA-W-63,420B), and Plant 9, Shelby, North Carolina
(TA-W-63,420C), who became totally or partially separated
from employment on or after May 20, 2007, through two years
from the issuance of this revised determination, are
eligible to apply for Trade Adjustment Assistance under
Section 223 of the Trade Act of 1974, and are eligible to
apply for alternative trade adjustment assistance under
Section 246 of the Trade Act of 1974."
Signed at Washington, D.C. this 20th day of November 2008.

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

4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-63,420
BERNHARDT FURNITURE COMPANY
CORPORATE OFFICE
LENOIR, NORTH CAROLINA

TA-W-63,420A
BERNHARDT FURNITURE COMPANY
BERNHARDT CENTRAL WAREHOUSE
LENOIR, NORTH CAROLINA

TA-W-63,420B
BERNHARDT FURNITURE COMPANY
PLANT 6/11
INCLUDING ON-SITE LEASED WORKERS OF THE MULLBERRY GROUP
AND ACCUFORCE STAFFING SERVICES
LENOIR, NORTH CAROLINA

TA-W-63,420C
BERNHARDT FURNITURE COMPANY
PLANT 9
SHELBY, NORTH CAROLINA

TA-W-63,420D
BERNHARDT FURNITURE COMPANY
PLANT 10
CHERRYVILLE, NORTH CAROLINA

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 (19
USC 2273), as amended, the Department of Labor herein presents
the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
In order to make an affirmative determination and issue a
certification of eligibility to apply for Trade 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:
B. 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:
3. 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;
4. 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
5. 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 May 21, 2008 in response
to a petition filed by a company official on behalf of workers
of The Bernhardt Furniture Company, Bernhardt Corporate Office,
Lenoir, North Carolina (TA-W-63,420), Bernhardt Central
Warehouse, Lenoir, North Carolina (TA-W-63,420A), Plant 6/11,
Lenoir, North Carolina (TA-W-63,420B), Plant 9, Shelby, North
Carolina (TA-W-63,420C), Plant 10, Cherryville, North Carolina
(TA-W-63,420D).
The investigation revealed that Bernhardt Furniture Company
Plant 6/11, Lenoir, North Carolina (TA-W-63,420B), leased
workers from The Mulberry Group and Accuforce Staffing Services
in Lenoir, North Carolina.
Workers of the Corporate Office (TA-W-63,420) are engaged
in a variety of business activities in support of company
production and related operations including accounting, mail
delivery and sales.
Workers at the Central Warehouse (TA-W-63,420A) are engaged
in distribution operations.
Plant 6/11 (TA-W-63,420B), Plant 9 (TA-W-63,420C), and
Plant 10 (TA-W-63,420D) together comprise the Upholstered
Furniture Department. Workers at those facilities produce
upholstered furniture. The worker groups are separately
identifiable by location but not specific product manufactured.
The Department has determined that in the case of Bernhardt
Furniture Company, Plant 10, Cherryville, North Carolina (TA-W-
63,420D), the requirements of (a)(2)(A) of Section 222 have been
met.
The investigation revealed that employment declined at
Plant 10 in January to March 2008 compared with the same period
in 2007.
Production of upholstered furniture by the Upholstery
Department declined from 2006 to 2007 and January to March 2008.
The investigation further revealed that the subject firm
has shifted production of upholstered furniture to China and has
increased its reliance on imports during the relevant period.
It is further determined that with respect to workers of
Bernhardt Corporate Office, Lenoir, North Carolina (TA-W-
63,420), Bernhardt Central Warehouse, Lenoir, North Carolina
(TA-W-63,420B), Plant 6/11, Lenoir, North Carolina (TA-W-
63,420C), and Plant 9, Shelby, North Carolina (TA-W-63,420C)
that criteria (a)(2)(A)(I.A) and (a)(2)(B)(II.A) have not been
met.
The investigation revealed that the subject firm did not
separate or threaten to separate a significant number or
proportion of workers at the locations cited above as required
by Section 222 of the Trade Act of 1974. Significant number or
proportion of the workers in a firm or appropriate subdivision
thereof, means that at least three workers with a workforce of
fewer than 50 workers or five percent of the workers with a
workforce over 50 workers. Separations by the subject firm did
not meet this threshold level.
The petitioner may reapply should circumstances change.
The petitioner also requested consideration of alternative
trade adjustment assistance for workers at each of the subject
firm locations covered by the petition.
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 group eligibility
requirements of Section 246 of the Trade Act must be met.
The Department has determined that in the case of Bernhardt
Furniture Company, Plant 10, Cherryville, North Carolina (TA-W-
63,420D), the requirements of Section 246 have been met.
A significant number of workers at the division are age 50
or over and possess skills that are not easily transferable.
Competitive conditions within the industry are adverse.
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 of Bernhardt Furniture Company at the
following subdivisions are denied eligibility to apply for TAA,
the workers cannot be certified eligible for ATAA: Bernhardt
Corporate Office, Lenoir, North Carolina (TA-W-63,420),
Bernhardt Central Warehouse, Lenoir, North Carolina (TA-W-
63,420A), Plant 6/11, Lenoir, North Carolina (TA-W-63,420B), and
Plant 9, Shelby, North Carolina (TA-W-63,420C).
Conclusion
After careful review of the facts obtained in the
investigation, I determine that increases of imports of articles
like or directly competitive with upholstered furniture produced
by Bernhardt Furniture Company, Plant 10, Cherryville, North
Carolina (TA-W-63420D) contributed importantly to the total or
partial separation of workers and to the decline in sales or
production and at that firm or subdivision. In accordance with
the provisions of the Act, I make the following certification:
“All workers of Bernhardt Furniture Company, Plant 10,
Cherryville, North Carolina (TA-W-63,420D) who became
totally or partially separated from employment on or after
May 20, 2007, through two years from the date of
certification, are eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, and
are also eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974."
Furthermore, I determine that all workers of Bernhardt
Furniture Company, Bernhardt Corporate Office, Lenoir, North
Carolina (TA-W-63,420), Bernhardt Central Warehouse, Lenoir,
North Carolina (TA-W-63,420A), Plant 6/11, Lenoir, North
Carolina (TA-W-63,420B), and Plant 9, Shelby, North Carolina
(TA-W-63,420C), 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 at Washington, D.C., this 13th day of June 2008
/s/ Richard Church
__
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance





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