UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,302

EXEL INC. D/B/A DHL SUPPLY CHAIN

MOUNT CLEMENS, MICHIGAN

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
(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 to issue a certification 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 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 May 19, 2022 and filed
on May 20, 2022 by State Workforce Office, on behalf former workers
of Exel Inc. d/b/a DHL Supply Chain, Mount Clemens, Michigan
(hereafter referred to as the "group of workers"). In accordance
with 20 C.F.R. 618.110, group of workers is defined as, ""¦including
teleworkers and staffed workers." The group of workers is engaged
in activities related to the supply of warehouse and distribution
services. The petition alleges that worker separations, or threats
thereof, were due to a loss of business contracts.

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 workers' firm is engaged in activities related to the
supply of warehouse and distribution services pursuant to a
business contract.

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 Exel Inc. d/b/a DHL
Supply Chain, Mount Clemens, Michigan, 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 17th day of June, 2022


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

Certifying Officer, Office of

Trade Adjustment Assistance