UNITED STATES DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-98,094
CLASSIC BRANDS, LLC
JESSUP, MARYLAND
Negative Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance
TRADE ADJUSTMENT ASSISTANCE
In accordance with Section 223 of the Trade Act of 1974, as
amended (the Act), 19 U.S.C. § 2273, the Department of Labor (the
Department) herein presents the results of an investigation
regarding certification of eligibility to apply for worker
adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department to issue a certification for workers under Section
222(a) of the Act, 19 U.S.C. § 2272(a), the following three
criteria must be met:

(1)The first criterion (set forth in Section 222(a)(1) of theAct, 19 U.S.C. § 2272(a)(1)) requires that a significantnumber or proportion of the workers in such workers' firm, oran appropriate subdivision of the firm, have become totallyor partially separated, or are threatened to become totallyor partially separated

(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:

(A) Increased Imports Path:

(i) sales or production, or both, at the workers' firm must
have decreased absolutely, AND

(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and

(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or production
of such firm or subdivision.

(B) Shift in Production Path:

(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and

(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a free
trade agreement with the United States;

(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or

(III)there has been or is likely to be an increase
in imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers
of a Supplier or a Downstream Producer, the following criteria
must be met:

(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who received
a certification of eligibility under Section 222(a) of
the Act, 19 U.S.C. § 2272(a), and such supply or
production is related to the article that was the basis
for such certification; and

(3)either

(A)the workers' firm is a supplier and the componentparts it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production orsales of the workers' firm; or

(B)a loss of business by the workers' firm with thefirm described in paragraph (2) contributed importantlyto the workers' separation or threat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."

The investigation was initiated in response to a Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment Assistance (ATAA) petition dated October 25, 2021 and
filed on October 26, 2021 by a State Workforce Office on behalf of
former workers of Classic Brands, LLC, Jessup, Maryland (hereafter
referred to as the "group of workers"). In accordance with 20
C.F.R. 618.110 a worker group is defined as, ""¦includingteleworkers and staffed workers."

The group of workers is engaged in activities related to the
production of refurbished mattresses and box springs.

The petition alleges that worker separations, or threats
thereof, were due to a shift in production to a foreign country.

During the course of the investigation, the Department
collected information from the petition and the workers' firm.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production to a foreign country.

With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that neither firm nor customer imports of
articles like or directly competitive articles with articles
produced by the workers' firm have increased during the relevant
period.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that Classic Brands, LLC, Jessup, Maryland
is not a Supplier to a firm that employed a group of workers who
received a certification of eligibility under Section 222(a) of
the Act, 19 U.S.C. § 2272(a), and does not act as a Downstream
Producer to a firm (or subdivision, whichever is applicable) that
employed a group of workers who received a certification of
eligibility under Section 222(a) of the Act, 19 U.S.C. § 2272(a),
based on an increase in imports from, or a shift in production to,
Canada or Mexico.

ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE

In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
(ATAA), the group of workers must be certified eligible to apply
for Trade Adjustment Assistance (TAA). Because the group of workers
are denied eligibility to apply for TAA, the group of workers
cannot be certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the
investigation, I determine that all workers of Classic Brands,
LLC, Jessup, Maryland, are denied eligibility to apply for adjust-
ment assistance under Section 223 of the Trade Act of 1974, as
amended, and are also denied eligibility to apply for alternative
trade adjustment assistance under Section 246 of the Trade Act of
1974, amended.

Signed in Washington, D.C. this 26th day of November, 2021



/s/ Jessica R. Webster
_______________________
JESSICA R. WEBSTER

Certifying Officer, Office of

Trade Adjustment Assistance