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TAW-80143  /  GlobalTex, LLC (Hudson, MA)

Petitioner Type: State
Impact Date: 04/29/2010
Filed Date: 05/02/2011
Most Recent Update: 06/03/2011
Determination Date: 06/03/2011
Expiration Date: 01/20/2014

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,143

GLOBALTEX, LLC
INCLUDING ON-SITE LEASED WORKERS FROM MARATHON STAFFING
HUDSON, MASSACHUSETTS

Notice of Revised Determination
on Reconsideration

The initial investigation, initiated on May 2, 2011, resulted
in a negative determination, issued on June 3, 2011, that was based
on the absence of a produced article. The determination was
applicable to workers and former workers of Globaltex, LLC,
including on-site leased workers from Marathon Staffing, Hudson,
Massachusetts (subject firm). The notice of determination was
published in the Federal Register on June 17, 2011 (76 FR 35475).
The workers’ firm supplied design and distribution services of
children’s clothing.
As required by the Trade Adjustment Assistance (TAA) Extension
Act of 2011 (the TAAEA), the investigation into this petition was
reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of title
II of the Trade Act of 1974, as amended by the TAAEA, to the facts
of this petition.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the worker
group at Globaltex, Inc., Hudson, Massachusetts meets the
requirements for eligibility to apply for TAA.
Section 222(a)(1) has been met because a significant number
or proportion of the workers at Globaltex, Inc., Hudson,
Massachusetts have become totally or partially separated, or are
threatened to become totally or partially separated.
Section 222(a)(2)(A)(i) has been met because the sales of
design and distribution services of children’s clothing by the
subject firm have decreased absolutely.
Section 222(a)(2)(A)(ii)(II)(bb) has been met because
imports of apparel which are like or directly competitive with
the children’s apparel to which Globaltex, LLC had directly
provided services had increased during the relevant period.
Finally, Section 222(a)(2)(A)(iii) has been met because the
imports of apparel like or directly competitive with children’s
apparel which were produced directly using services supplied by
the subject firm contributed importantly to the worker group
separations and sales/production declines at Globaltex, LLC,
Hudson, Massachusetts.
Conclusion
After careful review, I determine that workers of Globaltex,
LLC, Hudson, Massachusetts, who supplied design and distribution
services of children’s clothing, meet the worker group
certification criteria under Section 222(a) of the Act, 19 U.S.C. §
2272(a). In accordance with Section 223 of the Act, 19 U.S.C. §
2273, I make the following certification:
"All workers of Globaltex, Inc., including on-site leased
workers of Marathon Staffing, Hudson, Massachusetts, who
became totally or partially separated from employment on or
after April 29, 2010, through two years from the date of
certification, and all workers in the group threatened with
total or partial separation from employment on the date of
certification through two years from the date of
certification, are eligible to apply for adjustment assistance
under Chapter 2 of Title II of the Trade Act of 1974, as
amended.”
Signed in Washington, D.C., this 20th day of January, 2012

/s/ Del Min Amy Chen

______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-80,143

GLOBALTEX, LLC
INCLUDING ON-SITE LEASED WORKERS
FROM MARATHON STAFFING
HUDSON, MASSACHUSETTS

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 (“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) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department of Labor 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:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that 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
(2) 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers’ separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) 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
(ii)(I) 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;
(II)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
(III)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.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), 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 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.


Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms “Supplier” and “Downstream Producer.”
The investigation was initiated in response to a petition
filed on May 2, 2011 by a state workforce office on behalf of
workers of GlobalTex, LLC, Hudson, Massachusetts (GlobalTex
Hudson). The workers’ firm was engaged in activities related to the
supply of children’s clothing. Workers were engaged in design and
distribution activities of children’s clothing. The worker group
also includes on-site leased workers from Marathon Staffing.
The petitioner alleged that production was outsourced and
design moved abroad. During the course of the investigation,
information was collected from the workers’ firm and petitioner.
The investigation revealed that GlobalTex Hudson, does not
produce an article within the meaning of Section 222(a) or Section
222(b) of the Act. 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. The definition
of a firm includes an individual proprietorship, partnership, joint
venture, association, corporation (including a development
corporation), business trust, cooperative, trustee in bankruptcy,
and receiver under decree of any court.
During the investigation, the Department of Labor obtained
information that revealed that the workers’ firm did not produce an
article; rather, the workers’ firm supplied services related to the
distribution of imported children’s clothing. Designs produced
incidental to the provision of a service are not articles within
the meaning of the Trade Act.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(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 GlobalTex, LLC,
including on-site leased workers from Marathon Staffing, Hudson,
Massachusetts, engaged in activities related to the supply of
children’s clothing, 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 3rd day of June, 2011



/s/Hope D. Kinglock___________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance








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