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ETA News Release: [09/09/2003]
Contact Name: Ed Frank
Phone Number: (202) 693-4676

Labor Department Certifies Pillowtex Workers for Trade Adjustment Assistance

WASHINGTON—The U.S. Department of Labor has certified approximately 5,000 workers laid off from Pillowtex, Inc., in North Carolina, Virginia, Mississippi, Pennsylvania, California, Alabama, Illinois, Texas, and South Carolina as eligible to apply for Trade Adjustment Assistance services and benefits.

“This Administration is committed to getting help as quickly as possible to the workers who worked at Pillowtex,” said Secretary of Labor Elaine L. Chao. “On top of the $20.6 million that has already been given in national emergency grants, this certification means up to two years of training, up to 104 weeks of weekly income support, job search and relocation benefits, and a health coverage tax credit that covers up to 65 percent of monthly health premiums for workers and their families.”

Certification enables eligible Pillowtex workers to apply for trade-related benefits and services. At local One-Stop Career Centers, they will obtain a broad range of re-employment and retraining services, including career counseling, job placement assistance, job search and relocation allowances and income support during long-term training. The Labor Department also offers information about pension and health benefit protections.

The Trade Adjustment Assistance Reform Act of 2002 created two new programs for eligible workers. The Health Coverage Tax Credit provides up to 65% of the cost of qualified health insurance coverage. In addition, workers over age 50 who return to work quickly may be eligible for reemployment benefits under the Alternative Trade Adjustment Assistance program.

This certification covers the period from August 2002 to August 2005. Workers laid off or reduced to part-time during this time period may be eligible for Trade Adjustment Assistance benefits and services.

In addition to certifying Pillowtex, Inc., workers for Trade Adjustment Assistance benefits, the U.S. Department of Labor also certified approximately 350 workers from Kannapolis, N.C. and Easley, S.C. as impacted secondary workers making them eligible for the same benefits as the former Pillowtex, Inc., workers.

A group of three or more employees who believe they are adversely affected by foreign imports may petition the U.S. Department of Labor and the state’s Dislocated Worker Unit for certification. A union or company official or a One-Stop Career Center may also petition on behalf of a firm’s workers. Additional information about Trade Adjustment Assistance, including petition forms, may be found at www.doleta.gov/tradeact/.

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