DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-56,766

CHALLENGER CONTRACT MANUFACTURING, INC.
DANDRIDGE, TENNESSEE

Negative Determinations Regarding Eligibility to Apply for
Worker Adjustment Assistance and
Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974 (19
USC 2273), as amended, the Department of Labor herein presents
the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance as an
adversely affected secondary group.
An investigation was conducted in order to determine
whether 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; and

(3) either-

(A) the workers' firm is a supplier and the component
parts it supplied for the firm (or subdivision)
described in paragraph (2) accounted for at least 20
percent of the production or sales of the workers'
firm; or

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

The investigation was initiated on March 16, 2005 in
response to a petition filed by a company official on behalf of
workers of Challenger Contract Manufacturing, Inc., Dandridge,
Tennessee. The workers test, inspect and finish liquid crystal
display projectors.
The investigation revealed that criteria 2 and 3 (B) have
not been met.
Petitioners allege that job losses were due to their firm
losing business as a downstream producer for firm that has
increased imports from Canada or Mexico or shifted production to
Canada or Mexico. The investigation revealed, however, that was
not the case.
The investigation revealed that the subject firm does not
qualify as an adversely affected secondary firm acting as a
downstream producer because the certified primary firm did not
increase imports from Canada or Mexico or shift production to
Canada or Mexico as required by the Act, as amended.
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 assistance (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 covered
by this petition of Challenger Contract Manufacturing, Inc.,
Dandridge, Tennessee do not qualify as adversely affected
secondary workers and are denied eligibility to apply for
adjustment assistance under section 223(b) of the Trade Act of
1974.
After careful review, I determine that all workers of
Challenger Contract Manufacturing, Inc., Dandridge, Tennessee
are denied eligibility to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974.
Signed at Washington, D.C., this 5th day of April 2005.
/s/ Richard Church
__
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance