DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-74,289

CAYE UPHOLSTERY, LLC
A SUBSIDIARY OF CAYE HOME FURNISHINGS, LLC
NEW ALBANY, MISSISSIPPI

TA-W-74,289A

CAYE UPHOLSTERY, LLC
A SUBSIDIARY OF CAYE HOME FURNISHINGS, LLC
STAR, NORTH CAROLINA

TA-W-74,289B

CAYE UPHOLSTERY, LLC
A SUBSIDIARY OF CAYE HOME FURNISHINGS, LLC
TAYLORSVILLE, NORTH CAROLINA

TA-W-74,289C

CAYE UPHOLSTERY, LLC
A SUBSIDIARY OF CAYE HOME FURNISHINGS, LLC
TAMPA, FLORIDA

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (c)
or (f) of Section 222 of the Act, 19 U.S.C. § 2272(a), (c), (f).
For the Department to issue a certification for workers
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), the
following three criteria must be met:
I. The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

II. The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely, AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(i)(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm.

III. The third criterion requires that the increase in imports
or shift/acquisition must have contributed importantly to
the workers' separation or threat of separation. See
Sections 222(a)(2)(A)(iii) and 222(a)(2)(B)(ii) of the Act,
19 U.S.C. §§ 2272(a)(2)(A)(iii), 2272(a)(2)(B)(ii).

Section 222(d) of the Act, 19 U.S.C. § 2272(d), defines the
terms "Supplier" and "Downstream Producer." For the Department
to issue a secondary worker certification under Section 222(c)
of the Act, 19 U.S.C. § 2272(c), to workers of a Supplier or a
Downstream Producer, the following criteria must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article or
service that was the basis for such certification; and

(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.

Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission (ITC) as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(f) of the Act, 19 U.S.C. § 2272(f).
The group eligibility requirements for workers of a firm
under Section 222(f) of the Act, 19 U.S.C. § 2272(f), can be
satisfied if the following criteria are met:
(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a
domestic industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of
1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));
(2) the petition is filed during the 1-year period
beginning on the date on which--
(A) a summary of the report submitted to the
President by the International Trade Commission
under section 202(f)(1) with respect to the
affirmative determination described in paragraph
(1)(A) is published in the Federal Register under
section 202(f)(3); or
(B) notice of an affirmative determination described
in subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b)(1), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on June 24, 2010 on behalf of workers of Caye Upholstery,
LLC, a subsidiary of Caye Home Furnishings, LLC, New Albany,
Mississippi (TA-W-74,289); Caye Upholstery, LLC, a subsidiary of
Caye Home Furnishings, LLC, Star, North Carolina (TA-W-74,289A);
Caye Upholstery, LLC, a subsidiary of Caye Home Furnishings,
LLC, Taylorsville, North Carolina (TA-W-74,289B); Caye
Upholstery, LLC, a subsidiary of Caye Home Furnishings, LLC,
Tampa, Florida (TA-W-74,289C) (hereafter referred to
collectively as "Caye Upholstery, LLC"). The workers are
engaged in activity related to the production of upholstered
furniture. There are no on-site leased workers at any of the
afore-mentioned facilities.
The petition states "Quality and financial issues with a
China supplier. Resulted in other suppliers to stop flow of raw
materials from China. Caye Upholstery borrowed money with the
bank based on in transit goods. No raw material on the water,
therefore no cash flow. The bank decided in their best interest
to close Caye Upholstery, LLC and not to sell. Caye Upholstery,
LLC has four facilities, New Albany, MS, Star, NC, Taylorsville,
NC and Tampa, FL. Estimated closing date is August 2, 2010."
The investigation revealed that workers of Caye Upholstery,
LLC, who are engaged in employment related to the production
of upholstered furniture, do not meet the criteria for
certification.
With respect to Section 222(a) of the Act, the
investigation revealed that Criteria II and III have not been
met. Criterion II has not been met because there was no shift
to/acquisition from a foreign country by Caye Upholstery, LLC of
articles like or directly competitive with the upholstered
furniture produced by the subject firm and no increased imports
of articles like or directly competitive with the upholstered
furniture produced by the subject firm. Criterion III has not
been met because the workers' separation or threat of separation
is not attributable to a shift of production or increased
imports or like or directly competitive articles.
With respect to Section 222(c) of the Act, the
investigation revealed that Criterion (2) has not been met
because the subject firm did not supply a component part or a
service to a firm that employed a worker group eligible to
apply for Trade Adjustment Assistance.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been met
because Caye Upholstery, LLC has not been identified in an
affirmative finding of injury by the ITC.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Caye Upholstery, LLC,
a subsidiary of Caye Home Furnishings, LLC, New Albany,
Mississippi (TA-W-74,289); Caye Upholstery, LLC, a subsidiary of
Caye Home Furnishings, LLC, Star, North Carolina (TA-W-74,289A);
Caye Upholstery, LLC, a subsidiary of Caye Home Furnishings,
LLC, Taylorsville, North Carolina (TA-W-74,289B); Caye
Upholstery, LLC, a subsidiary of Caye Home Furnishings, LLC,
Tampa, Florida (TA-W-74,289C) are denied eligibility to apply
for adjustment assistance under Section 223 of the Act, 19
U.S.C. § 2273.
Signed in Washington, D.C., this 10th day of September, 2010


/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance