DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-55,514

ELLIOT POWER SYSTEMS, INC.
A SUBSIDIARY OF ELLIOT COMPANY
LEXINGTON, TENNESSEE

Negative Determination Regarding Eligibility
To Apply for Worker 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. 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
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 August 31, 2004 in response
to a petition filed on behalf of workers at Elliot Power Systems,
Inc., a subsidiary of Elliot Company, Lexington, Tennessee. The
workers produce diesel generator sets.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II. B) have not been met.
The investigation revealed that the subject firm did not
import diesel generator sets or shift production abroad during
2002, 2003 or during January through July of 2004.
The subject facility did not experience a decline in sales
during the relevant period and thus imports did not contribute
importantly to separations of workers. Shutdown of the facility can
be attributed to revenue growth insufficient to maintain the
required profitability.
Conclusion
After careful review of the facts obtained in this
investigation, I determine that all workers of Elliot Power
Systems, Inc., a subsidiary of Elliot Company, Lexington, Tennessee
are denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974.
Signed in Washington, D.C. this 17th day of September 2004
/s/ Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance