DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-51,001

e-GAIN COMMUNICATIONS CORPORATION
NOVATO, CALIFORNIA

Notice of Revised Determination
on Reconsideration

By application of April 8, 2003, a petitioner requested
administrative reconsideration regarding the Department’s
Negative Determination Regarding Eligibility to Apply for Worker
Adjustment Assistance, applicable to the workers of the subject
firm.
The initial investigation resulted in a negative
determination issued on March 18, 2003, based on the finding that
the petitioning workers did not produce an article within the
meaning of Section 222 of the Act. The denial notice was
published in the Federal Register on April 2, 2003 (68 FR 16094).
The petitioner alleges that they produced a product.
Upon further review during the reconsideration process, and
contact with the company, it became apparent that the subject
facility workers did produce a product (specifically, software
which was marketed for retail sale) within the meaning of Section
222 of the Act.
In addition, it was revealed that the company shifted
production of competitive software to India and subsequently
began importing a significant portion of this production to U.S.
customers during the relevant period.
The investigation further revealed that employment declined
at the subject firm during the relevant period.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I conclude that increased imports of articles
like or directly competitive with those produced at e-Gain
Communications Corporation, Novato, California, contributed
importantly to the declines in sales or production and to the
total or partial separation of workers at the subject firm. In
accordance with the provisions of the Act, I make the following
certification:
"All workers of e-Gain Communications Corporation, Novato,
California, who became totally or partially separated from
employment on or after February 18, 2002 through two years
from the date of this certification, are eligible to apply
for adjustment assistance under Section 223 of the Trade Act
of 1974."

Signed in Washington, D.C. this 8th day of August 2003.

/s/ Elliott S. Kushner

________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-51,001

e-GAIN COMMUNICATIONS CORPORATION
NOVATO, CALIFORNIA

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (19 USC 2273), the Department of Labor herein presents the
results of an investigation regarding certification of eligibility
to apply for worker adjustment assistance.
The investigation was initiated on February 27, 2003, in
response to a petition filed by a California state agency on behalf
of workers at e-Gain Communications Corporation, Novato,
California. The workers at the subject facility were engaged in
software development, sales support, and maintenance.
The investigation revealed that the petitioning workers of
this firm or subdivision do not produce an article within the
meaning of Section 222 of the Act. The Department of Labor has
consistently determined that the performance of services does not
constitute production of an article, as required by Section 222 of
the Trade Act of 1974, and this determination has been upheld in
the U.S. Court of Appeals.
Workers at the firm or subdivision may be certified only if
their separation was caused importantly by a reduced demand for
their services from a parent firm, a firm otherwise related to
their firm by ownership, or a firm related by control. Addition-
ally, the reduction in demand for services must originate at a
production facility whose workers independently meet the statutory
criteria for certification, and the reduction must directly relate
to the product impacted by imports. These conditions have not been
met for workers at this facility.
Conclusion
After careful review, I determine that all workers of e-Gain
Communications Corporation, Novato, California are denied
eligibility to apply for adjustment assistance under Section 223 of
the Trade Act of 1974.
Signed in Washington, D. C. this 18th day of March, 2003.

/s/ Linda G. Poole

______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance