DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,706

QUALITY AUTO ELECTRIC, INC.
KNOXVILLE, TENNESSEE

Notice of Negative Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the
Trade Preferences Extension Act of 2015, Public Law No. 114-27,
section 405(a)(1)(A), the investigation into this petition was
reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of title
II of the Trade Act of 1974, as amended by the TAARA 2015, to the
facts of this petition (statutory reconsideration).
The initial investigation, initiated on December 10, 2014,
resulted in a negative determination, issued on January 9, 2015,
based on the finding that Criterion (1) has not been met. The
determination is applicable to workers and former workers of
Quality Auto Electric, Inc., Knoxville, Tennessee (subject firm).
The subject firm is engaged in activities related to the production
of alternators and starters (by remanufacturing and repair). The
subject worker group does not include on-site leased workers.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that with respect
to Section 222(a) and Section 222(b) of the Act, Criterion (1) has
not been met because a significant number or proportion of the
workers in such workers’ firm, have not become totally or partially
separated, nor are they threatened to become totally or partially
separated. A worker group means that the workers’ firm must have
at least three full-time workers during the year proceeding the
Trade Adjustment Assistance (TAA) petition date which is used to
determine whether a significant number or proportion of the workers
was partially or totally separated. The workers’ firm did not meet
this threshold level. The subject firm did not employ a worker
group during the one-year period prior to the petition date
(December 9, 2014).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either because the
workers’ firm has not been publically identified by name by the
International Trade Commission as a member of a domestic industry
in an investigation resulting in an affirmative finding of serious
injury, market disruption, or material injury, or threat thereof.



Conclusion
After careful review, I determine that the requirements of
Section 222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Quality Auto
Electric, Inc., Knoxville, Tennessee, to apply for adjustment
assistance, in accordance with Section 223 of the Act, 19 U.S.C. §
2273.
Signed in Washington, D.C. this 13th day of November, 2015

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





DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,706

QUALITY AUTO ELECTRIC, INC.
KNOXVILLE, 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, 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) and
(b) of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). 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 criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that 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
(2) 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) 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
(ii)(I) 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;
(II)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
(III)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.

For the Department to issue a secondary worker
certification under Section 222(b) of the Act, 19 U.S.C. §
2272(b), 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 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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
The investigation was initiated in response to a petition
filed on December 10, 2014 by an American Job Center on behalf
of workers of Quality Auto Electric, Inc., Knoxville,
Tennessee. The workers' firm is engaged in activities related to
the production of alternators and starters by way of
remanufacturing and repair.
The petitioner alleged that the workers were impacted by
imports of like or directly competitive items from foreign
countries. During the course of the investigation, information
was collected from the workers' firm.
With respect to Section 222(a) and Section 222(b) of the
Act, the investigation revealed that Criterion (1) has not been
met. The workers' firm did not employ a worker group during the
relevant time period (2013 and 2014). A worker group means that
the workers' firm must have at least three full-time workers
during the year preceding the Trade Adjustment Assistance (TAA)
petition date which is used to determine whether a significant
number or proportion of the workers was partially or totally
separated. While the petition states that five workers were
employed at the workers' firm, the investigation revealed that
fewer than three workers were employed by the workers' firm
during the period of investigation (2013 and 2014). The
workers' firm did not meet this threshold level.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
TAA. Since the workers are denied eligibility to apply for TAA,
the workers cannot be certified eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Quality Auto
Electric, Inc., Knoxville, Tennessee engaged in activities
related to the production of alternators and starters are
denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, as amended, and are also
denied eligibility to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974, amended.
Signed in Washington, D.C. this 9th day of January, 2015

/s/Hope D. Kinglock
_____________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance