[Federal Register Volume 60, Number 33 (Friday, February 17, 1995)]
[Notices]
[Pages 9407-9408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4019]



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DEPARTMENT OF LABOR
[TA-30,259]

Contract Fusing, Duryea, Pennsylvania


Notice of Negative Determination Regarding Application for 
Reconsideration

    By an application dated December 19, 1994, counsel for the workers 
requested administrative reconsideration of the subject petition for 
trade adjustment assistance (TAA). The denial notice was singed on 
November 21, 1994 (59 FR 63822).
    Pursuant to 29 CFR 90.18(c) reconsideration may be granted under 
the following conditions:
    (1) If it appears on the basis of facts not previously considered 
that the determination complained of was erroneous;
    (2) If it appear that the determination complained of was based on 
a mistake in the determination of fact not previously considered; or
    (3) If in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified reconsideration of the 
decision.
    The investigation findings show that the workers performed various 
fusing services for various manufacturers.
    The Department's denial was based on the fact that the 
``contributed importantly'' test of the workers group eligibility 
requirements of the Trade Act was not met. This test is generally 
demonstrated through a survey of the workers' firm's customers. The 
Department's survey of manufacturers for whom the subject firm 
performed contract work in 1992, 1993 and in the first nine months of 
1994 showed that none of the respondents reported importing fused cloth 
material in the relevant period.
    Counsel states that Contract Fusing was a subdivision of Valley 
Dress whose workers were certified for TAA by the Department. Counsel 
also states that the issue is not the importation of fused cloth but 
rather the importation of garments/dresses and that the entire garment 
industry has been adversely affected by increased imports.
    A review of the investigation files for Valley Dress (TA-W-27,889) 
shows that the workers produced ladies' dresses and suits and the 
workers were certified for TAA; however, the plant closed permanently 
on June 15, 1992. The date of the petition for the subject workers of 
Contract Fusing is August 19, 1994.
    To show integration of production between Valley Dress and Contract 
Fusing, the workers of Contract fusing should have filed 2 to 3 years 
earlier when Valley Dress was in operation. At this late date the 
Department sees no effect on Contract Fusing from a certified plant 
that closed much earlier.
    Very early in the administration of the worker adjustment 
assistance program, the courts addressed the issue of components and 
finished articles. In United Shoe Workers of America, AFL-CIO v. 
Bedell, 506 F2d 174, (D.C. Cir. 1974) the court held that imported 
finished women's shoes were not like or directly competitive with shoe 
components--shoe counters. Similarly, ladies' dresses and suits cannot 
be considered like or directly competitive with fused cloth or other 
components for ladies' dresses or suits.
    Further, the worker adjustment assistance program was not intended 
to provide TAA to workers who are in some way related to import 
competition but only for those workers who produce an article and are 
adversely affected by increased imports of like or directly competitive 
articles which contributed importantly to sales or production and 
employment declines at the workers' firm. Fusing cloth (an operation or 
service) is not like or directly competitive with ladies' dresses or 
suits.

Conclusion

    After review of the application and investigative findings, I 
conclude that there has been no error or misinterpretation of the law 
or of the facts which would justify reconsideration of the Department 
of [[Page 9408]] Labor's prior decision.Accordingly, the application is 
denied.

    Signed at Washington, DC, this 10th day of February, 1995.

Victor J. Trunzo,

Program Manager, Policy and Reemployment Services, Office of Trade 
Adjustment Assistance.

[FR Doc. 95-4019 Filed 2-16-95; 8:45 am]

BILLING CODE 4510-30-M