DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-95,777B

CARDONE INDUSTRIES, INC.
ARLINGTON, TEXAS

Notice of Negative Determination
Regarding Application for Reconsideration

By application dated May 11, 2020, workers requested
administrative reconsideration of the Department of Labor's
negative determination regarding eligibility to apply for worker
adjustment assistance, applicable to workers and former workers
of Cardone Industries, Inc., Arlington, Texas (TA-W-95,777B).
The determination was issued on April 15, 2020.
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) If it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) If in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.
The request for reconsideration asserts that the workers at
the Arlington, Texas facility (TA-W-95,777B) were separated in
2019 due to a shift of production to a foreign country and
decreased production. Specifically, the request states that the
Arlington, Texas facility is a distribution center of stock
produced at affiliated facilities; that the loss of production
caused a decline in stock to distribute; that “the stock
adjustment department . . . was dissolved and moved to Mexico”;
and the “calibration process” related to “CV, water pumps,
window lift, and wiper motors” was moved about of the Arlington,
Texas facility. The request also asserts that activity at the
Philadelphia, Pennsylvania facility impacted the Arlington,
Texas facility.
The petition states: “The company has relocated to Mexico
due to foreign trade. The production is now shifted to Mexico.
Cardone Industries products are now manufactured in Mexico
because the company wants cheaper labor. Reference Philadelphia
# 94723 & 94723A.”
The Department’s initial determination states that Cardone
Industries, Inc. did not shift to a foreign country the supply
of services like or directly competitive with those supplied by
the Arlington, Texas facility and that the Arlington, Texas
facility does not act as a Supplier or Downstream Producer to
the Philadelphia, Pennsylvania facility.
The request for reconsideration did not supply facts not
previously considered; nor provide additional documentation
indicating that there was either 1) a mistake in the
determination of facts not previously considered or 2) a
misinterpretation of facts or of the law justifying
reconsideration of the initial determination. Based on these
findings, the Department determines that 29 CFR 90.18(c) has not
been met.
Conclusion
After careful review of the application and investigative
findings, I conclude that there has been no error or
misinterpretation of the law or of the facts which would justify
reconsideration of the Department of Labor's prior decision.
Accordingly, the application is denied.
Signed in Washington, D.C., this 14th day of July, 2020


/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-95,777

CARDONE INDUSTRIES, INC.
INCLUDING ON-SITE LEASED WORKERS FROM EXPRESS EMPLOYMENT
HARLINGEN, TEXAS

TA-W-95,777A

CARDONE INDUSTRIES, INC.
INCLUDING ON-SITE LEASED WORKERS FROM
SELECT STAFF AND LINK STAFFING
BROWNSVILLE, TEXAS

TA-W-95,777B

CARDONE INDUSTRIES, INC.
ARLINGTON, TEXAS


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), (b)
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and
(e). 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 the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

(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) (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; AND
(iii) the increase in imports 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.
(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
(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; and
(ii) the shift described in clause (i)(I) or the
acquisition of articles or services described in
clause (i)(II) contributed importantly to such
workers' separation or threat of separation.

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 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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
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(e) of the Act, 19 U.S.C. § 2272(e).
The group eligibility requirements for workers of a firm
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), 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), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on March 6, 2020 by a State Workforce Office on behalf of
former workers of Cardone Industries, Inc., including on-site
leased workers from Express Employment, Harlingen, Texas (TA-
95,777), Cardone Industries, Inc., including on-site leased
workers from Select Staff and Link Staffing, Brownsville,
Texas (TA-95,777A), and Cardone Industries, Inc., Arlington,
Texas (TA-95,777A)(hereafter collectively referred to as
"Cardone Industries-Texas"). Cardone Industries, Inc. is
engaged in activities related to the production of
remanufactured automotive parts. The worker groups covered by
TA-W-95,777 and TA-W-95,777A are engaged in activities related
to the supply of operation support services; the worker group
covered by TA-W-95,777B is engaged in activities related to
the supply of warehousing and distribution services. The
subject workers are separately identifiable from workers
covered by TA-W-91,807.
The petition asserts that worker separations at Cardone
Industries-Texas are due to a shift in the production of
articles to a foreign country.
During the course of the investigation, information was
collected from the petition and the workers' firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that Cardone Industries, Inc. did not
import the supply of services like or directly competitive
with the services supplied by workers at Cardone Industries-
Texas.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Cardone Industries, Inc. did not
shift to another country the supply of services like or
directly competitive with the services supplied by workers at
Cardone Industries-Texas.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Cardone Industries-Texas is
neither 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).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied because Criterion (1)
has not been met since the workers' firm has not been publicly
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 of the facts obtained in the
investigation, 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 Cardone Industries,
Inc., including on-site leased workers from Express
Employment, Harlingen, Texas (TA-W-95,777), Cardone
Industries, Inc., including on-site leased workers from Select
Staff and Link Staffing, Brownsville, Texas (TA-W-95,777A),
and Cardone Industries, Inc., Arlington, Texas (TA-W-95,777B),
to apply for adjustment assistance, in accordance with Section
223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 15th day of April 2020.

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