DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-63,459

CHACO, INC.
PAONIA, COLORADO

Certification 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 its 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 in either paragraph
(a)(2)(A) or (a)(2)(B) of Section 222 of the Trade Act must be met.
It is determined in this case that the requirements of (a)(2)(B) of
Section 222 have been met.
The investigation was initiated on June 2, 2008, in response
to a petition filed by a company official on behalf of workers at
Chaco, Inc., Paonia, Colorado. The workers at the subject firm
produce headwater sandals.
The investigation revealed that sales and production at the
subject facility declined from 2006 to 2007 and during the period
of January through June 2008 over the corresponding 2007 period.
Employment declined from 2006 to 2007, and future separations will
take place in July 2007.
The investigation further revealed that the subject firm
increased its reliance on imported headwater sandals during the
relevant period.
In addition, in accordance with Section 246 of 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 in this case that the 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 obtained in the
investigation, I determine that increased imports of articles like
or directly competitive with headwater sandals produced by the
subject firm contributed importantly to the total or partial
separation of workers and to the decline in sales or production at
that firm or subdivision. In accordance with the provisions of the
Act, I make the following certification:


"All workers of Chaco, Inc., Paonia, Colorado who became
totally or partially separated from employment on or after May
31, 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."
Signed in Washington, D. C. this 18th of June 2008.

/s/ Elliott S. Kushner

______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance