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TAW-96075  /  Southern Finishing Company (Martinsville, VA)

Petitioner Type: State
Impact Date: 04/17/2019
Filed Date: 07/22/2020
Most Recent Update: 01/23/2021
Determination Date: 01/23/2021
Expiration Date: 04/17/2021

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-96,075

SOUTHERN FINISHING COMPANY

PLANT #12

INCLUDING ON-SITE LEASED WORKERS FROM HIRE DYNAMICS, LLC

MARTINSVILLE, VIRGINIA

TA-W-96,075A

SOUTHERN FINISHING COMPANY

PLANT #15

INCLUDING ON-SITE LEASED WORKERS FROM HIRE DYNAMICS, LLC

MARTINSVILLE, VIRGINIA

TA-W-96,075B

SOUTHERN FINISHING COMPANY

CORPORATE OFFICE

INCLUDING ON-SITE LEASED WORKERS FROM HIRE DYNAMICS, LLC

STONEVILLE, NORTH CAROLINA

Determinations 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), (b) or
(e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and (e).
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 the workers' firm must
have become totally or partially separated or be threatened
with total or partial separation.

(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) (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; AND

(iii) the increase in imports 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.

(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

(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; and

(ii) the shift described in clause (i)(I) or the acquisition
of articles or services described in clause (i)(II)
contributed importantly to such 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." 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 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 as a member of a domestic industry in an investigation
resulting in a category of determination that is listed in
Section 222(e) of the Act, 19 U.S.C. § 2272(e).

The group eligibility requirements for workers of a firm under
Section 222(e) of the Act, 19 U.S.C. § 2272(e), 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), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on July 22, 2020, by a State Workforce Office on behalf of
workers of Southern Finishing Company, Plant #12, including on-
site leased workers from Hire Dynamics, LLC, Martinsville,
Virginia (TA-W-96,075); Southern Finishing Company, Plant #15,
including on-site leased workers from Hire Dynamics, LLC,
Martinsville, Virginia (TA-W-96,075A); and Southern Finishing
Company, including on-site leased workers from Hire Dynamics,

LLC, Corporate Office, Stoneville, North Carolina (TA-W-
96,075B). The workers' firm is engaged in activities related to
the production of prefinished wooden components utilized in the
cabinet industry. Products are inclusive of mouldings, panels,
doors, and other accessories.

TA-W-96,075 & TA-W-96,075A

The investigation revealed that on April 17, 2020, the U.S.
International Trade Commission determined, pursuant to the Tariff
Act of 1930, that an industry in the United States is materially
injured by reason of imports of wooden cabinets and vanities from
China, that have been found by the U.S. Department of Commerce to
be sold in the United States at less than fair value, and to be
subsidized by the government of China.

A petition was filed on behalf of workers of Southern
Finishing Company located in Martinsville, Virginia. The firm was
publicly identified by name by the International Trade Commission
as a member of a domestic industry in an investigation resulting
in a category of determination that is listed in Section 222(e)
of the Act, 19 U.S.C. § 2272(e).

In addition, that determination was published in the Federal
Register on April 17, 2020, which is within one year of the date
of the petition filed requesting Trade Adjustment Assistance
(TAA) Certification.



Lastly, worker separations occurred during the one-year
period preceding the date that the notice was published, and the
one-year period after, within the Federal Register.
TA-W-96,075B
The petition was also filed on behalf of workers of Southern
Finishing Company, Stoneville, North Carolina. This location was
also publicly identified by the ITC in the investigations as a
member of a domestic industry in the United States that was
materially injured by reason of imports of wooden cabinets and
vanities from China. However, the group eligibility requirements
under Section 222(e) of the Act, have not been satisfied because
Criterion (3) has not been met.
It was confirmed that zero (0) worker separations
occurred during the one-year period preceding the date that
the Federal Register notice was published, or as of the
present date of this investigation. It should also be noted
that employment at the Stoneville site increased.
Furthermore, with respect to Section 222(a) and Section
222(b) of the Act, the investigation revealed that Criterion
(1) has not been met because a significant number or proportion
of the workers in such workers' firm, have not become totally or
partially
separated, nor are they threatened to become totally or partially
separated.

Conclusion(s)

After careful review of the facts obtained in the
investigation, I determine that workers of Southern Finishing
Company, Plant #12, including on-site leased workers from Hire
Dynamics, LLC, Martinsville, Virginia (TA-W-96,075) and Southern
Finishing Company, Plant #15, including on-site leased workers
from Hire Dynamics, LLC, Martinsville, Virginia (TA-W-96,075A),
engaged in activities related to the production of prefinished
wooden components utilized in the cabinet industry, meet the
requirements of Section 222(e) of the Act. In accordance with
Section 223 of the Act, I make the following certification:

"All workers of Southern Finishing Company, Plant #12,
including on-site leased workers from Hire Dynamics, LLC,
Martinsville, Virginia (TA-W-96,075) and Southern Finishing
Company, Plant #15, including on-site leased workers from
Hire Dynamics, LLC, Martinsville, Virginia (TA-W-96,075A),
who became totally or partially separated from that
employment on or after April 17, 2019, through the date of
the certification and who become totally or partially
separated from that employment from the date of the
certification through April 17, 2021, are eligible to apply
for adjustment assistance under Chapter 2 of Title II of the
Trade Act of 1974, as amended."

Furthermore, after careful review of the facts obtained in
the investigation, 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 Southern Finishing
Company, including on-site leased workers from Hire Dynamics,
LLC, Corporate Office, Stoneville, North Carolina (TA-W-96,075B)
engaged in activities related to the production of prefinished
wooden components utilized in the cabinet industry; specifically,
corporate services, to apply for adjustment assistance in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C., this 23rd day of January, 2021.


/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK

Certifying Officer, Office of

Trade Adjustment Assistance