DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-54,961

TDS AUTOMOTIVE
OXFORD, MICHIGAN

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (19 USC 2273), the Department of Labor herein presents the
results of an investigation regarding certification of eligibility
to apply for worker adjustment assistance. The group eligibility
requirements for directly-impacted (primary) workers under Section
222(a) the Trade Act of 1974, as amended, can be satisfied in
either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the firm,
have become totally or partially separated, or are
threatened to become totally or partially separated;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly competitive
with articles produced by such firm or subdivision have
contributed importantly to such workers' separation or
threat of separation and to the decline in sales or
production of such firm or subdivision; or

II. Section (a)(2)(B) both of the following must be satisfied:

A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the
firm, have become totally or partially separated, or are
threatened to become totally or partially separated;
B. 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
C. One of the following must be satisfied:
1. 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;
2. 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
3. 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.

The investigation was initiated on May 21, 2004 in response to
a petition filed by the United Automobile, Aerospace & Agricultural
Implement Workers of America, Region 1 and Local Union 9699. The
workers perform sub-assembly and part sequencing work on automotive
suspensions, engine cradles and radiator assemblies.
The investigation revealed that criteria I.C. and II.C. have
not been met.
The investigation revealed that the subject firm did not
import engine cradles, rear suspensions or radiator assemblies, nor
did it transfer sub-assembly or sequencing work abroad.
The United States Department of Labor surveyed customers of
the subject firm regarding their contractual acquisition of engine
cradles, rear suspensions and radiator assemblies in 2002-2003 and
January through June, 2003-2004. Respondents reported no imports in
the relevant periods.
Petitioners also alleged that the petitioning group of workers
qualifies as adversely affected secondary workers acting as
downstream producers for a firm or subdivision primarily affected
by increased imports from Canada or Mexico or a shift of production
to Canada or Mexico.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance,
the following group eligibility requirements under Section 222(b)
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 (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) that
employed a group of workers who received a certification
of eligibility to apply for trade adjustment assistance
benefits and such supply or production is related to the
article that was the basis for such certification.

The investigation revealed that criterion (2) has not been
met.
The investigation revealed that the subject firm assembled
into subassemblies component parts obtained from a component
manufacturer. The subject firm did not perform final assembly or
finishing directly on the parts themselves. Assembly of the parts
into another product (sub-assemblies) took place after the
manufactured parts were purchased from the component producer.
That producer was not certified based on the shift of production to
Mexico of sub-assemblies like those produced by the subject firm.
Furthermore, any loss of business with the firm supplying
components did not contribute importantly to worker separations
at the subject firm as the law stipulates. Separations are
related to the loss of business with the major customer of the
subject firm.
In addition, in accordance with Section 246 the Trade Act of
1974 (26 USC 2813), as amended, the Department of Labor herein
presents the results of its investigation regarding certification
of eligibility to apply for alternative trade adjustment assis-
tance (ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the worker group must be certified
eligible to apply for trade adjustment assistance (TAA). Since the
workers are denied eligibility to apply for TAA, the workers cannot
be certified eligible for ATAA.
Conclusion
After careful review, I determine that all workers of TDS
Automotive, Oxford, Michigan are denied eligibility to apply for
adjustment assistance under Section 223 of the Trade Act of 1974,
and are also denied eligibility to apply for alternative trade
adjustment assistance under Section 246 of the Trade Act of 1974.
Signed in Washington, D.C., this 9th day of July, 2004.

/s/ Richard Church
________________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance