[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Notices]
[Pages 7819-7820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4619]



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[[Page 7820]]


DEPARTMENT OF LABOR
[NAFTA-00728]


Karl J. Marx Company, Inc., New York, New York; Negative 
Determination Regarding Eligibility To Apply for NAFTA-Transitional 
Adjustment Assistance

    Pursuant to Title V of the North American Free Trade Agreement 
Implementation Act (Pub. L. 103-182) concerning transitional adjustment 
assistance, hereinafter called (NAFTA-TAA) and in accordance with 
Section 250(a), Subchapter D, Chapter 2, Title II, of the Trade Act of 
1974, as amended (19 U.S.C. 2331), the Department of Labor herein 
presents the results of an investigation regarding certification of 
eligibility to apply for NAFTA-TAA.
    The investigation was initiated on December 13, 1995 in response to 
a petition filed on behalf of workers at the Karl J. Marx Company, Inc. 
located in New York, New York. The workers were engaged in the 
activities solely related to buying and selling fully manufactured 
clothing goods. The Karl J. Marx Company, Inc. is a buying service that 
serves both small stores and major chain stores in assisting them in 
finding the best prices [of clothing and houseware goods] in the 
market.
    The investigation revealed that the workers of the subject firm do 
not produce an article within the meaning of Section 250(a) of the 
Trade Act, as amended. The Department of Labor has consistently 
determined that the performance of services does not constitute 
production of an article, as required by the Trade Act of 1974, and 
this determination has been upheld in the United States Court of 
Appeals.
    Therefore, workers at the Karl J. Marx Company, Inc. located in New 
York, New York 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. In any case, 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. The workers of the 
subject firm were not in direct support to any company affiliated 
production facility; therefore, these conditions have not been met for 
workers at the subject firm.

Conclusion

    After careful review, I determine that all workers at Karl J. Marx 
Company, Inc. located in New York, New York are denied eligibility to 
apply for NAFTA-TAA under Section 250 of the Trade Act of 1974.
    An investigation was instituted on January 22, 1996 for trade 
adjustment assistance (TA-W-31,789) under Section 223 of the Trade Act 
(19 U.S.C. 2273). A final determination should be made within 60 days 
of the institution date.

    Signed at Washington, DC., this 25th day of January 1996.
Russell T. Kile,
Acting Program Manager, Policy and Reemployment Services, Office of 
Trade Adjustment Assistance.
[FR Doc. 96-4619 Filed 2-28-96; 8:45 am]
BILLING CODE 4510-3--M