DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-71,401

SETCO AUTOMOTIVE, INC.
PARIS, TENNESSEE

Notice of Revised Determination
on Reconsideration

By application dated April 5, 2010, the Tennessee AFL-CIO
Technical Assistance Office (Union) requested administrative
reconsideration of the negative determination regarding workers’
eligibility to apply for Trade Adjustment Assistance (TAA)
applicable to workers and former workers of the subject firm.
The initial investigation resulted in a negative
determination, issued on March 9, 2010, that was based on the
finding that there was no increase in imports by the workers’ firm
or customers of the subject firm, nor was there a shift or
acquisition by the workers’ firm, and neither the workers’ firm nor
its customers reported imports of articles like or directly
competitive with articles into which the automotive clutch products
produced by the workers’ firm was directly incorporated into. The
Department’s Notice of determination was published in the Federal
Register on April 23, 2010 (FR 75 21358).
The reconsideration investigation revealed that, during 2008
and 2009, the subject firm sold component parts (automotive clutch
products) to be incorporated into an article to a firm that
employed a worker group currently eligible to apply for TAA, and
that the article was the basis for the certification. The subject
firm’s sales to that customer in each of those two years amounted
to approximately twenty percent of the subject firm’s total sales.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I determine that workers of Setco Automotive,
Inc., Paris, Tennessee meet the worker group certification criteria
under Section 222(c) of the Act, 19 U.S.C. § 2272(c). In
accordance with Section 223 of the Act, 19 U.S.C. § 2273, I make
the following certification:
"All workers of Setco Automotive, Inc., Paris, Tennessee, who
became totally or partially separated from employment on or
after June 25, 2008, through two years from the date of this
certification, and all workers in the group threatened with
total or partial separation from employment on date of
certification through two years from the date of
certification, are eligible to apply for adjustment assistance
under Chapter 2 of Title II of the Trade Act of 1974, as
amended.”
Signed in Washington, D.C., this 4th day of May, 2010

/s/ Del Min Amy Chen
_______________________________
DEL MIN AMY CHEN
Certifying Officer, Division of
Trade Adjustment Assistance

4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-71,401

SETCO AUTOMOTIVE INC.
PARIS, TENNESSEE

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (“Act”), 19 U.S.C. § 2273, the Department of Labor herein
presents the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (c) or
(f) of Section 222 of the Act, 19 U.S.C. § 2272(a), (c), (f). For
the Department of Labor to issue a certification for workers under
Section 222(a) of the Act, 19 U.S.C. § 2272(a), the following three
criteria must be met:
I. The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers’ firm must
have become totally or partially separated or be threatened
with total or partial separation.

II. The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers’ firm must
have decreased absolutely, AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers’ firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the component
part produced by the workers’ firm was directly
incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers’ firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article into
which the component part produced by the workers’
firm was directly incorporated have increased.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers’ firm to a
foreign country in the production of articles or supply
of services like or directly competitive with those
produced/supplied by the workers’ firm; OR
(i)(II) there has been an acquisition from a foreign country
by the workers’ firm of articles/services that are like
or directly competitive with those produced/supplied by
the workers’ firm.

III. The third criterion requires that the increase in imports or
shift/acquisition must have contributed importantly to the
workers’ separation or threat of separation. See Sections
222(a)(2)(A)(iii) and 222(a)(2)(B)(ii) of the Act, 19 U.S.C.
§§ 2272(a)(2)(A)(iii), 2272(a)(2)(B)(ii).

Section 222(d) of the Act, 19 U.S.C. § 2272(d), defines the
terms “Supplier” and “Downstream Producer.” For the Department to
issue a secondary worker certification under Section 222(c) of the
Act, 19 U.S.C. § 2272(c), to workers of a Supplier or a Downstream
Producer, the following criteria 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 is a Supplier or Downstream Producer to
a firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the
Act, 19 U.S.C. § 2272(a), and such supply or production
is related to the article or service that was the basis
for such certification; and

(3) either
(A) the workers’ firm is a supplier and the component parts
it supplied to the firm 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
described in paragraph (2) contributed importantly to the
workers’ separation or threat of separation.

Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission as a member of a domestic industry in an investigation
resulting in a category of determination that is listed in
Section 222(f) of the Act, 19 U.S.C. § 2272(f).
The group eligibility requirements for workers of a firm under
Section 222(f) of the Act, 19 U.S.C. § 2272(f), can be satisfied if
the following criteria are met:
(1) the workers’ firm is publicly identified by name by the
International Trade Commission as a member of a domestic
industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section 705(b)(1)(A)
or 735(b)(1)(A) of the Tariff Act of 1930 (19
U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A));
(2) the petition is filed during the 1-year period beginning
on the date on which--
(A) a summary of the report submitted to the President
by the International Trade Commission under section
202(f)(1) with respect to the affirmative
determination described in paragraph (1)(A) is
published in the Federal Register under section
202(f)(3); or
(B) notice of an affirmative determination described in
subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers’ firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b)(1), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on June 25, 2009 on behalf of workers of Setco Automotive
Inc., Paris, Tennessee (Setco). The workers are engaged in
employment related to the production of automotive clutch
products.
The petitioner alleged that there was a shift of production in
the manufacturing of automotive clutch products to overseas
manufacturers as well as increased imports of articles similar to
the products produced by the subject firm. The investigation
included surveying both the subject firm and customers identified
by the subject firm as major declining customers.
With respect to Section 222(a) of the Act, the investigation
revealed that Criterion II has not been met because there was no
increase in imports by the workers’ firm or customers of the
subject firm, nor was there a shift or acquisition by the
workers’ firm or customers of the subject firm. In addition,
neither the workers’ firm nor customers of the subject firm
reported imports of articles like or directly competitive with
articles into which the automotive clutch products produced by
the workers’ firm was directly incorporated into.
With respect to Section 222(c) of the Act, the investigation
revealed that Criterion (2) has not been met because the workers
did not produce an article that was used by a firm with TAA-
Certified workers in the production of an article that was the
basis for TAA-Certification.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because the workers’ firm has not been identified in an affirmative
finding of injury by the International Trade Commission.


Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Setco Automotive Inc.,
Paris, Tennessee who are engaged in employment related to the
production of automotive clutch products are denied eligibility to
apply for adjustment assistance under Section 223 of the Act, 19
U.S.C. § 2273.
Signed in Washington, D.C., this 9th day of March, 2010

/s/Elliott S. Kushner
______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance






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