UNITED STATES DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-98,197
ZONES, INC.
INCLUDING WORKERS WHOSE WAGES WERE REPORTED UNDER ZONES, LLC
AUBURN, WASHINGTON
Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance

TRADE ADJUSTMENT ASSISTANCE

In accordance with Section 223 of the Trade Act of 1974, as
amended ("the Act"), 19 U.S.C. § 2273, the Department of Labor
("the Department") 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 three
criteria must be met:

(1)The first criterion (set forth in Section 222(a)(1) of theAct, 19 U.S.C. § 2272(a)(1)) requires that a significantnumber or proportion of the workers in such workers' firm, oran appropriate subdivision of the firm, have become totallyor partially separated, or are threatened to become totallyor partially separated

(2)The second criterion (set forth in Section 222(a)(2) of theAct, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of twoways:

(A)Increased Imports Path:

(i)sales or production, or both, at the workers' firm musthave decreased absolutely, AND

(ii)imports of articles like or directly competitive witharticles produced by such firm or subdivision haveincreased; and

(iii)the increase described in clause (ii) contributed
importantly to such workers' separation or threat ofseparation and to the decline in the sales or productionof 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 articleslike or directly competitive with articles which areproduced by such firm or subdivision; and

(ii)(I) the country to which the workers' firm hasshifted production of the articles is a party to a freetrade agreement with the United States;

(II)the country to which the workers' firm hasshifted production of the articles is a beneficiarycountry under the Andean Trade Preference Act, AfricanGrowth and Opportunity Act, or the Caribbean BasinEconomic Recovery Act; or

(III)there has been or is likely to be an increasein imports of articles that are like or directlycompetitive with articles which are or were produced bysuch 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 theworkers' firm or an appropriate subdivision of the firmhave become totally or partially separated, or arethreatened to become totally or partially separated;

(2)the workers' firm is a Supplier or Downstream Producerto a firm that employed a group of workers who receiveda certification of eligibility under Section 222(a) ofthe Act, 19 U.S.C. § 2272(a), and such supply orproduction is related to the article that was the basis
for such certification; and

(3)either

(A)the workers' firm is a supplier and the componentparts it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production orsales of the workers' firm; or

(B)a loss of business by the workers' firm with thefirm described in paragraph (2) contributed importantlyto 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 Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment Assistance (ATAA) petition dated February 9, 2022 and
filed on February 10, 2022 by a State Workforce Office, on behalf
of former workers of Zones, Inc., including workers whose wages
were reported under Zones, LLC, Auburn, Washington (hereafter
referred to as the "group of workers"). In accordance with 20 CFR
618.110 group of workers is defined as, ""¦including teleworkers
and staffed workers."

The petition alleges that worker separations, or threats
thereof, were due to foreign trade because, work has shifted
overseas.

In order to be considered eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, the group
of workers seeking certification (or on whose behalf certification
is being sought) must work for a "firm" or appropriate subdivision
that produces an article. The definition of a firm includes an
individual proprietorship, partnership, joint venture,
association, corporation (including a development corporation),
business trust, cooperative, trustee in bankruptcy, and receiver
under decree of any court.

Per 20 CFR 618.110, Article means "a tangible good or an
intangible good sold or produced by a firm. The good must be the
subject of the sale or production, and not an object that is
produced incidentally to the sale or production. An article can be
measured in individual production units or commercial production
units, such as with commodities. Sale of an article is the means
by which revenue is generated, accumulated, or calculated."

During the investigation, the Department obtained information
that revealed that the petition workers' firm does not produce an
article within the meaning of Section 222(a) or Section 222(b) of
the Act; rather, the workers' firm was engaged in activities
related to the supply of information technology products, services,
and solutions services.

ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE

In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
("ATAA"), the group of workers must be certified eligible to apply
for Trade Adjustment Assistance ("TAA"). Because the group of
workers are denied eligibility to apply for TAA, the group of

workers cannot be certified eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Zones, Inc.,
including workers whose wages were reported under Zones, LLC,
Auburn, Washington engaged in activities related to the supply
of information technology products, services, and solutions
services are denied eligibility to apply for adjustment assistance
under Section 223 of the Trade Act of 1974, and are also denied
eligibility to apply for Alternative Trade Adjustment Assistance
under Section 246 of the Trade Act of 1974.
Signed in Washington, D.C., this 1st day of April, 2022



/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK

Certifying Officer, Office of

Trade Adjustment Assistance