DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-51,549

VIRTUAL MAGIC ANIMATION, INC.
NORTH HOLLYWOOD, 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 group eligibility
requirements for directly-impacted (primary) workers under Section
222(a) the Trade Act of 1974, as amended, can be satisfied in
either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. 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;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly competitive
with articles produced by such firm or subdivision have
contributed importantly to such workers' separation or
threat of separation and to the decline in sales or
production of such firm or subdivision; or



II. Section (a)(2)(B) both of the following must be satisfied:

A. 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;
B. 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

C. One of the following must be satisfied:
1. 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;
2. 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
3. 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.

The investigation was initiated on April 22, 2003 in response
to a petition filed by a company official on behalf of workers at
Virtual Magic Animation, Inc., North Hollywood, California. The
workers at the subject facility were engaged in digital cartoon
animation; they were not separately identifiable by product.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) were not met.
The investigation revealed that the subject firm did not
import digital cartoon animation from 2001 to 2002, or during the
period of January through March 2003, when compared to the same
period in 2002.
Furthermore, the investigation revealed that the subject firm
did not shift production of its digital cartoon animation abroad
during the relevant period.
The Department of Labor surveyed the subject firm's major
declining customers regarding their purchases of digital cartoon
animation. This survey revealed negligible imports of digital
cartoon animation during the relevant period.
Conclusion
After careful review, I determine that all workers of Virtual
Magic Animation, Inc., North Hollywood, California are denied
eligibility to apply for adjustment assistance under Section 223 of
the Trade Act of 1974.
Signed in Washington, D.C. this 5th day of June, 2003.

/s/ Linda G. Poole

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