Denied
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TAW-85103  /  Guru Denim, Inc. (Vernon, CA)

Petitioner Type: State
Impact Date:
Filed Date: 02/28/2014
Most Recent Update: 01/29/2016
Determination Date: 03/28/2014
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,103

GURU DENIM, INC.
A SUBSIDIARY OF TRUE RELIGION APPAREL, INC.
SAMPLE DEPARTMENT
VERNON, CALIFORNIA

Notice of Negative Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the
Trade Preferences Extension Act of 2015, Public Law No. 114-27,
section 405(a)(1)(A), 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 TAARA 2015, to the
facts of this petition (statutory reconsideration).
The initial investigation, initiated February 28, 2014,
resulted in a negative determination, issued on March 28, 2014,
that was based on no production of an article. The determination
was applicable to workers and former workers of Guru Denim, Inc.,
a subsidiary of True Religion Apparel, Inc., Sample Department,
Vernon, California. The workers’ firm is engaged in activities
related to the supply of sample services for the production of
men’s and women’s jeans.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the
requirements for certification have not been met.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that Guru Denim, Inc., a subsidiary of
True Religion Apparel, Inc., Sample Department, Vernon,
California, did not import services like or directly competitive
with the supply of sample services.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
sample services or a like or directly competitive service to a
foreign country or acquire sample services for the production of
men’s and women’s jeans or like or directly competitive services
from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Guru Denim, Inc., a subsidiary of
True Religion Apparel, Inc., Sample Department, Vernon,
California, is not a Supplier 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Guru Denim, Inc., a subsidiary of
True Religion Apparel, Inc., Sample Department, Vernon,
California, does not act as a Downstream Producer to a firm (or
subdivision, whichever is applicable) 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).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either because Criterion
(1) has not been met since the workers’ firm has not been publicly
identified by name by the International Trade Commission as a
member of a domestic industry in an investigation resulting in an
affirmative finding of serious injury, market disruption, or
material injury, or threat thereof.
Conclusion
After careful review, I determine that the requirements of
Section 222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Guru Denim,
Inc., a subsidiary of True Religion Apparel, Inc., Sample
Department, Vernon, California, who were engaged in employment
related to the supply of sample services for the production of
men’s and women’s jeans to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 29th day of January, 2016.


/s/Jacquelyn R. Mendelsohn
______________________________
JACQUELYN R. MENDELSOHN
Certifying Officer, Office of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,103

GURU DENIM, INC.
A SUBSIDIARY OF TRUE RELIGION APPAREL, INC.
SAMPLE DEPARTMENT
VERNON, CALIFORNIA

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 February 28, 2014 by a State Workforce Office on behalf of workers of Guru Denim, Inc., a subsidiary of True Religion Apparel, Inc., Sample Department, Vernon, California. The workers’ firm is engaged in activities related to the supply of sample services for apparel.
The petitioner alleged that worker separations were caused by a shift in production of men’s and women’s jeans to China, India, Mexico and Guatemala. During the course of the investigation, information was collected from the workers’ firm and the petitioner.
The investigation revealed that Guru Denim, Inc., a subsidiary of True Religion Apparel, Inc., Sample Department, Vernon, California, 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 sample services for apparel.
With respect to Section 222(b)(2) of the Act, the investigation revealed that Guru Denim, Inc., a subsidiary of True Religion Apparel, Inc., Sample Department, Vernon, California is not 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).
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 Guru Denim, Inc., a subsidiary of True Religion Apparel, Inc., Sample Department, Vernon, California, engaged in activities related to the supply of sample services 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 28th day of March, 2014.

/s/Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance