Denied
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TAW-64190  /  Hafner USA, Inc. (New York, NY)

Petitioner Type: State
Impact Date:
Filed Date: 10/08/2008
Most Recent Update: 11/26/2008
Determination Date: 11/26/2008
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-64,190

HAFNER USA, INC.
NEW YORK, NEW YORK

Notice of Negative Determination
on Reconsideration

On January 13, 2009, the Department issued an Affirmative
Determination Regarding Application for Reconsideration of the
negative determination regarding workers’ eligibility to apply
for Trade Adjustment Assistance (TAA) and Alternative Trade
Adjustment Assistance (ATAA) applicable to workers and former
workers of Hafner USA, Inc., New York, New York (subject firm).
The Department’s Notice was published in the Federal Register on
January 26, 2009 (74 FR 4460).
The initial determination was based on the Department’s
findings that the subject worker group does not support a firm or
appropriate subdivision that produces an article domestically.
In order to apply for TAA based on increased imports, the
subject worker group must meet the group eligibility requirements
under Section 222(a) of the Trade Act of 1974, as amended. Under
Section 222(a)(2)(A), the following criteria must be met:
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.

29 CFR Section 90.2 states that a group means “three or more
workers in a firm or an appropriate subdivision thereof” and that
a significant number or proportion of the workers means “at least
three workers in a firm (or appropriate subdivision thereof) with
a work force of fewer than 50 workers.” The regulation also
states that “increased imports means that imports have increased
either absolutely or relative to domestic production compared to
a representative base period. The representative base period
shall be one year consisting of the four quarters immediately
preceding the date which is twelve months prior to the date of
the petition.”
Because the petition date is October 3, 2008, the relevant
period (the twelve months prior to the date of the petition) is
October 2007 through September 2008 and the representative base
period is October 2006 through September 2007.
The Department has carefully reviewed information submitted
during the initial and reconsideration investigations. The
Department determines that the petition did not cover a valid
worker group (the group consisted of only two workers at the
subject firm) and that, during relevant period, less that three
workers were separated or were threatened with separation from
the subject firm.
Based on the information above, the Department determines
that the group eligibility requirements under Section 222(a) of
the Trade Act of 1974, as amended, were not met.
Even if there was a valid worker group and the worker
separation threshold was met, the Department would not have
issued a certification applicable to the subject worker group.
During the reconsideration investigation, the Department
confirmed that the subject firm ceased production in the United
Stated in 2005. The North Carolina facility identified in the
request for reconsideration was a marketing office. The Virginia
facility identified in the request for reconsideration (Hafner
LLC, a subsidiary of Hafner, Inc., Gordonsville, Virginia) was
certified on May 16, 2005 (TA-W-57,119) based on a shift of
production to Canada.
Because there was no domestic production during the relevant
period, the Department determines that there was no domestic
production that increased imports could have impacted. Further,
the Department determines that there was no shift of production
to a foreign country during the relevant period.
In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
(ATAA), the subject worker group must be certified eligible to
apply for Trade Adjustment Assistance (TAA). Since the subject
workers are denied eligibility to apply for TAA, the workers
cannot be certified eligible for ATAA.
Conclusion
After reconsideration, I affirm the original notice of
negative determination of eligibility to apply for worker
adjustment assistance for workers and former workers of Hafner
USA, Inc., New York, New York.
Signed at Washington, D.C., this 24th day of February 2009.

/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-64,190
HAFNER USA, INC.
NEW YORK, NEW YORK

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 investigation was initiated on October 8, 2008, in
response to a petition filed on behalf of workers of Hafner USA,
Inc., New York, New York. The workers are engaged in textile
distribution services for goods produced in Canada.
In order to be considered eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, the worker
group seeking certification (or on whose behalf certification is
being sought) must work for a "firm" or appropriate subdivision
that produces an article domestically and there must be a
relationship between the workers' work and the article produced by
the workers' firm or appropriate subdivision. The workers at the
subject firm do not support a firm or appropriate subdivision that
produces an article domestically and thus the worker group cannot
be considered import impacted or affected by a shift in production
of an article. Furthermore, the workers do not meet the minimum
employment criterion of three workers affected.
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 of the facts obtained in the
investigation, I determine that all workers of Hafner USA, Inc.,
New York, New York 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 26th day of November 2008


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








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