DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-41,591

RILEY GEAR CORPORATION
NORTH TONAWANDA, NEW YORK

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 May 28, 2002 in response to
a petition filed on behalf of workers at Riley Gear Corporation,
North Tonawanda, New York. The workers produced precision gears.
The investigation revealed that criterion (3) has not been
met.
Information provided by the company, show layoffs at the
subject facility were due to loss of production hours at the
subject plant, but not a loss in sales. The change in work
requirements for more raw material and outside contractor content,
led to sales increases and loss of production at the subject plant.
A significant amount of work at the subject facility was displaced
by contract work outside of the subject facility, but within the
United States
Company-wide sales increased in 2001 compared to 2000 and in
the first quarter of 2002 compared to the same period in 2001.
Conclusion
After careful review, I determine that all workers of Riley
Gear Corporation, North Tonawanda, New York are denied eligibility
to apply for adjustment assistance under Section 223 of the Trade
Act of 1974.
Signed in Washington, D. C. this 11th day of September, 2002

/s/ Elliott S. Kushner
______________________________
Elliott S. Kushner
Certifying Officer, Division of
Trade Adjustment Assistance