DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-41,418

RHO INDUSTRIES
BUFFALO, NEW YORK

Notice of Negative Determination
Regarding Application for Reconsideration

By application of July 29, 2002, the Union of Needletrades
Industrial and Textile Employees, Rochester Regional Joint Board
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 applicable to workers of RHO
Industries, Buffalo, New York was issued on June 28, 2002, and
was published in the Federal Register on July 18, 2002 (67 FR
47400).
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 investigation findings revealed that criterion (3) of
the group eligibility requirements of Section 222 of the Trade
Act of 1974 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. A survey of customers indicated that increased
imports did not contribute importantly to worker separations at
the subject firm. The company did not import chest piece inter-
linings during the relevant period. The workers produced chest
piece inter-linings.
The request for reconsideration alleges that the company
went out of business since they could not raise prices due to
alleged foreign competition undercutting the company's prices.
A review of data supplied during the initial investigation
shows that the company was not impacted by imports of chest piece
inter-linings. The company and a major declining customer that
accounted for virtually all of the company's sales did not import
chest piece inter-linings during 2000 through March 2002.
The allegation that the company could not raise prices, due
to foreign competition undercutting the firms price is not
relevant to meeting the eligibility requirements of Section 223
of the Trade Act of 1974.



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 decision. Accordingly, the
application is denied.

Signed at Washington, D.C., this 6th day of January 2003
/s/ Edward A. Tomchick

__________________________
EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance