DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,268

SYNCREON

AUTOMOTIVE DIVISION

BELVIDERE, ILLINOIS

Negative Determinations 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 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 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 Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment Assistance (ATAA) petition dated April 19, 2022, and
filed on April 20, 2022, by a State Workforce Office, on behalf
of former workers of Syncreon, Automotive Division, Belvidere,
Illinois (hereafter referred to as "group of workers"). In
accordance with 20 C.F.R. 618.110 a worker group is defined as,
""¦including teleworkers and staffed workers." The petition
alleges that worker separations, or threats thereof, were due to
a shift in production to a foreign country.

During the course of the investigation, the Department
collected information from the petition and the workers' firm.

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 C.F.R. 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 workers' firm does not
produce an article within the meaning of Section 222(a) or
Section 222(b) of the Act; rather, the worker's firm is engaged
in activities related to the supply of logistical, warehousing,
storage 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 Syncreon,
Automotive Division, Belvidere, Illinois, 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 11th day of May, 2022


/s/ Del-Min Amy Chen
_______________________
DEL-MIN AMY CHEN

Certifying Officer, Office of

Trade Adjustment Assistance