Petitioner Type: Workers
Impact Date:
Filed Date: 02/12/2001
Most Recent Update: 03/12/2001
Determination Date: 03/12/2001
Expiration Date:
Employment and Training Administration
TA-W-38,679
AND
NAFTA-04608
KAZOO, INC.
SAN ANTONIO, TEXAS
Notice of Negative Determination
Regarding Application for Reconsideration
By application of April 12, 2001, the petitioner requested administrative reconsideration of the Department's negative determination regarding eligibility for workers and former workers of the subject firm to apply for Trade Adjustment Assistance (TAA) under petition TA-W-38,679 and North American Free Trade Agreement-Transitional Adjustment Assistance (NAFTA-TAA) under petition NAFTA-4608. The TAA denial notice applicable to workers of Kazoo, Inc., San Antonio, Texas, was signed on March 12, 2001 and will soon be published in the Federal Register. The NAFTA-TAA denial notice applicable to workers of Kazoo, Inc., San Antonio, Texas, was signed on March 12, 2001 and published in the Federal Register on April 5, 2001 (66 FR 18118).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
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 TAA petition, filed on behalf of workers at Kazoo, Inc., San Antonio, Texas engaged in cutting fabric, was denied because the "contributed importantly" group eligibility requirement of Section 222(3) of the Trade Act of 1974, as amended, was not met. The "contributed importantly" test is generally demonstrated through a survey of the workers' firm's customers. The subject firm did not increase their imports of cut fabric. Sales at the subject firm increased during 2000. The subject firm transferred their cutting operations to another domestic facility.
The NAFTA-TAA petition for the same worker group was denied because criteria (3) and (4) of the group eligibility requirements in paragraph (a)(1) of Section 250 of the Trade Act, as amended, were not met. The subject firm did not import cut fabric like and directly competitive with what the subject plant produced from Mexico or Canada, nor was the cutting operation shifted from the workers' firm to Mexico or Canada.
The petitioner alleges that the company shifted the cutting operation to Mexico. The petitioner attached selected letters of recommendation which depicts a shift in production to Mexico. The company was contacted and confirmed that the cutting operation was not shifted to Mexico, nor was the cutting operation contracted out to any Mexican contractor.
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 Labor's prior decisions. Accordingly, the application is denied.
Signed at Washington, D.C., this 29th day of October, 2001.
/s/ Edward A. Tomchick
_______________________
EDWARD A. TOMCHICK Director, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-38,679
KAZOO, INC.
SAN ANTONIO, TEXAS
Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance
In accordance with Section 223 of the Trade Act of 1974 (19 USC 2273) as amended by the Omnibus Trade and Competitiveness Act of 1988 (P. L. 100-418), the Department of Labor herein presents the results of an investigation regarding certification of eligi-bility to apply for worker adjustment assistance.
In order to make an affirmative determination and issue a certification of eligibility to apply for adjustment assistance, each of the group eligibility requirements of Section 222 of the Act must be met:
(1) that a significant number or proportion of the workers in the workers' firm, or an appropriate subdivision thereof, have become totally or partially separated, or are threatened to become totally or partially separated;
(2) that sales or production, or both, of the firm or subdi-vision have decreased absolutely; and
(3) that increases of imports of articles like or directly competitive with articles produced by the firm or appro-priate subdivision have contributed importantly to the separations, or threat thereof, and to the absolute decline in sales or production.
The investigation was initiated on February 12, 2001, in response to a petition filed on behalf of workers at Kazoo, Inc., San Antonio, Texas. The workers produced cut fabric. Most of the
cut fabric is sent to an affiliated facility for assembly into apparel.
A petition for NAFTA Transitional Adjustment Assistance has been filed on behalf of workers at the subject firm (NAFTA-4608).
This investigation revealed that criterion (3) has not been met.
The subject firm did not increase imports of products like or directly competitive with those produced at the subject facility.
Sales at the subject firm increased in 2000. The firm is transferring cutting operations at the San Antonio plant predominantly to another domestic facility.
Conclusion
After careful review, I determine that all workers of Kazoo, Inc., San Antonio, Texas, are denied eligibility to apply for adjustment assistance under Section 223 of the Trade Act of 1974.
Signed in Washington, D. C. this 12th day of March, 2001
/s/ Linda G. Poole
______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance