DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-40,328

DREXEL HERITAGE FURNISHINGS, INC.
MACHINE SHOP
MORGANTON, NORTH CAROLINA

Notice of Revised Determination
on Reconsideration

By letter of February 21, 2002, the petitioners, requested
administrative reconsideration regarding the Department=s
Negative Determination Regarding Eligibility to Apply for Worker
Adjustment Assistance, applicable to the workers of the subject
firm.
The initial investigation resulted in a negative
determination issued on January 22, 2002, based on the finding
that imports did not contribute importantly to worker separations
at the subject plant. The declines in employment at the subject
plant were attributed to the outsourcing of products produced by
the subject plant (saw blades, shaper knives and other cutting
bits) used in the manufacturing of furniture. The denial notice
was published in the Federal Register on February 5, 2002 (67 FR
5293).
The petitioners allege that the importing of furniture by an
affiliate, Drexel Heritage Furnishings at Morganton, North
Carolina, in which they were in direct support of drastically
reduced the production of furniture and thus impacted the subject
plant.
Information provided by the petitioner and information
provided by the company show that the subject plant workers were
in direct support, producing saw blades, shaper knives and other
cutting bits for of an affiliated plant(s) (Drexel Heritage
Furnishings Inc., Plant #3 and #5, Morganton, North Carolina).
The workers of Drexel Heritage Furnishings Inc., Plants #3 and #5
produced residential furniture and were certified eligible to
apply for Trade Adjustment Assistance on June 4, 2001 under TA-W-
39,275. Therefore, since the workers of Drexel Heritage
Furnishings, Inc., Machine Shop, North Carolina were in direct
support (meaningful portion) of the residential furniture
produced at the certified affiliated facilities, they meet the
eligibility requirements of the Trade Act of 1974.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I conclude that increased imports of articles
like or directly competitive with those produced at Drexel
Heritage Furnishings, Inc., Morganton, North Carolina, in which
the subject firm was in direct support, contributed importantly
to the declines in the firm's sales or production and to the
total or partial separation of workers at the Drexel Heritage
Furnishings, Inc., Machine Shop, Morganton, North Carolina. In
accordance with the provisions of the Act, I make the following
certification:




"All workers of Drexel Heritage Furnishings, Inc., Machine
Shop, Morganton, North Carolina, who became totally or
partially separated from employment on or after October 9,
2000 through two years from the date of this certification,
are eligible to apply for adjustment assistance under
Section 223 of the Trade Act of 1974."

Signed in Washington, D.C. this 6th day of May 2002.


/s/ Edward A. Tomchick
________________________
EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-40,328

DREXEL HERITAGE FURNISHINGS, INC.
MACHINE SHOP
MORGANTON, 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
subdivision have decreased absolutely; and

(3) that increases of imports of articles like or directly
competitive with articles produced by the firm or
appropriate subdivision have contributed importantly to
the separations, or threat thereof, and to the absolute
decline in sales or production.



The investigation was initiated on November 5, 2001 in
response to a petition filed on behalf of workers at Drexel
Heritage Furnishings, Machine Shop, Morganton, North Carolina.
Workers produced saw blades, shaper knives and other cutting bits
for the manufacturing of furniture.


The investigation revealed that criterion (3) has not been
met.
The investigation revealed that the subject firm in
Morganton, North Carolina, outsourced the manufacturing of saw
blades, shaper knives and other cutting bits used in the
manufacturing of furniture another domestic manufacturer.
The company did not increase imports of saw blades, shaper
knives and other cutting bits during the relevant period.
Conclusion
After careful review, I determine that all workers of Drexel
Heritage Furnishings, Inc., Machine Shop, Morganton, North
Carolina, are denied eligibility to apply for adjustment assis-
tance under Section 223 of the Trade Act of 1974.


Signed in Washington, D. C. this 22nd day of January, 2002.

/s/ Linda G. Poole
____________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance