Petitioner Type: Company
Impact Date:
Filed Date: 09/17/2001
Most Recent Update: 02/15/2002
Determination Date: 02/15/2002
Expiration Date:
Employment and Training Administration
TA-W-40,039
TNS MILLS INCORPORATED
ROCKINGHAM PLANT
ROCKINGHAM, NORTH CAROLINA
Notice of Negative Determination
Regarding Application for Reconsideration
By application dated March 19, 2002, the company, 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). The denial notice was signed on February 15,
2002 and published in the Federal Register on February 28, 2002
(67 FR 9324).
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 TNS Mills
Incorporated, Rockingham Plant, Rockingham, North Carolina
engaged in the production of ring spun carded cotton yarn, 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 Department conducted a survey of the subject
company's major customers regarding their purchases of ring spun
carded cotton yarn. The survey revealed that none of the
customers increased their import purchases of ring spun carded
cotton yarn during the relevant period.
The petitioner alleges that various customers of the subject
firm were certified for TAA. Therefore, they believe that due to
the number of customers certified for TAA, they should be
certified for TAA.
The certification of the subject firm's customers is
irrelevant unless the customers are affiliated with the subject
firm by corporate ownership. If there was corporate affiliation
the workers could receive consideration for eligibility under
TAA. The customers certified under TAA were outside the TNS
Mills corporate structure, and therefore cannot be considered
eligible for TAA under those certifications.
The petitioner also alleges that imports of ring spun cotton
yarn are lower in price than the domestic market, thus impacting
the subject firm workers.
The price of ring spun cotton yarns is not relevant to the
TAA investigation that were filed on behalf of workers producing
ring spun cotton yarns.
The petitioner further claims that imported carded yarns
impacted the closing of the subject plant. The petitioner
supplied a chart with import trends of various yarn imports.
Although, the Department uses industry data in their TAA
determinations, the Department of Labor normally examines if the
"contributed importantly" test is met through a survey of the
workers' firm's customers. A review of the survey results shows
that the customers did not increase their imports of ring spun
carded cotton yarn during the relevant period. Further, the
ratio of imports of carded yarn to U.S. production is relatively
low during the relevant period and therefore not a major
contributing factor relating to the declines in sales and
employment at the subject firm.
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 30th day of April, 2002.
/s/ Edward A. Tomchick
_______________________
EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-40,039
TNS MILLS INCORPORATED
ROCKINGHAM PLANT
ROCKINGHAM, NORTH CAROLINA
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 September 17, 2001 in
response to a petition filed on behalf of workers at TNS Mills,
Inc., Rockingham Plant, Rockingham, Alabama. The workers produced
ring spun carded cotton yarn for intra company production of
apparel fabrics and for the yarn sales market.
The investigation revealed that criterion (3) has not been
met.
The Department surveyed the major customers of TNS Mills, Inc.
regarding their purchases of ring spun carded cotton yarn during
1999, 2000 and January-June 2001. The survey revealed no increases
of foreign purchases of ring spun carded cotton yarn while
customers were decreasing purchases from the subject.
Conclusion
After careful review, I determine that all workers of TNS
Mills, Inc., Rockingham Plant, Rockingham, North Carolina, are
denied eligibility to apply for adjustment assistance under Section
223 of the Trade Act of 1974.
Signed in Washington, D. C. this 15th day of February 2002
/s/ Linda G. Poole
____________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance