DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-65,760

CLASSIC LEATHER, INC.
HICKORY, NORTH 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 April 7, 2009, in response to
a worker petition filed on behalf of workers of Classic Leather, Inc.,
Hickory, North Carolina. The workers produce upholstered furniture.
Workers are not separately identifiable by specific product line. The
subject firm had a large number of customers in the period under
investigation, none of which accounted for a significant percentage of
overall sales.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B) (II.B) have not been met.
The subject firm did not shift production of upholstered
furniture abroad nor did it import this product in 2007 through
March 2009.
United States aggregate imports of upholstered seats and chairs
and/or articles like or directly competitive with those produced at
the subject firm declined in 2008 compared with 2007, and continued to
decline in January through March 2009.
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 Classic Leather,
Inc., Hickory, North 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 14th day of May 2009


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