DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-42,080

JOHNSTOWN KNITTING MILL, INC.,
JOHNSTOWN, 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 eligibility
to apply for worker adjustment assistance.
The investigation was initiated in response to a petition
received on September 9, 2002, and filed on behalf of workers and
former workers at Johnstown Knitting Mill, Inc., Johnstown, New
York. The workers formerly produced knit apparel. The firm ceased
production more than one year prior to the date of the petition.
This puts the workers outside the reach of this program. Workers
terminated during the relevant period were engaged in distribution
and sales from inventory, maintenance and administrative functions.
The investigation revealed that the workers of Johnstown
Knitting Mill, Inc., Johnstown, New York, do not produce an article
within the meaning of Section 222(3) of the Trade Act of 1974. The
Department of Labor has consistently determined that the perfor-
mance of services does not constitute production of an article, as
required by Section 222 of the Trade Act of 1974, and this determi-
nation has been upheld in the U. S. Court of Appeals.


Workers of subject firm may be certified only if their
separation was caused importantly by a reduced demand for their
services from a parent firm, a firm otherwise related to the
subject firm by ownership, or a firm related by control.
Additionally, the reduction in demand for services must originate
at a production facility whose workers independently meet the
statutory criteria for certification and the reduction must
directly relate to the product impacted by imports. These
conditions have not been met for workers at the subject firm.
A petition for NAFTA-Transitional Adjustment Assistance has
been filed on behalf of workers at the subject firm (NAFTA-6518).
A determination on that petition will be made concurrently with
this determination.
Conclusion
After careful review, I determine that all workers of
Johnstown Knitting Mill, Inc., Johnstown, 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 18th day of October 2002.



/s/Elliott S. Kushner________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance