DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-53,209

COMPUTER SCIENCES CORPORATION
FINANCIAL SERVICES GROUP
EAST HARTFORD, CONNECTICUT


Notice of Revised Determination
On Remand

On January 27, 2006, the U.S. Court of International Trade
(USCIT) issued a third remand order directing the Department of
Labor (Department) to further investigate workers’ eligibility
to apply for Trade Adjustment Assistance (TAA) in the matter of
Former Employees of Computer Sciences Corporation v. United
States Secretary of Labor (Court No. 04-00149).
The initial determination for the workers of Computer
Sciences Corporation, Financial Services Group, East Hartford,
Connecticut (“CSC”) was issued on October 24, 2003 and published
in the Federal Register on November 28, 2003 (68 FR 66878). The
Department’s negative determination was based on the findings
that the subject worker group provided business and information
consulting, specialized application software, and technology
outsourcing support to customers in the financial services
industry, and that the workers did not produce an article within
the meaning of Section 222 of the Trade Act of 1974.
The Department issued a Notice of Negative Determination on
Reconsideration on February 3, 2004 and published the Notice in
the Federal Register on February 24, 2004 (69 FR 8488). The
Department determined that while CSC produced software, the
workers were ineligible to apply for TAA because CSC neither
shifted software production abroad nor imported software like or
directly competitive with that produced at the subject facility.
On July 29, 2004, the Department issued a Negative
Determination on Reconsideration on Remand for the workers of
the subject firm on the basis that packing functions did not
shift to India, that all storing and copying functions remained
in the United States, and that CSC did not import software like
or directly competitive with software produced at the subject
facility. The Department’s Notice was published in the Federal
Register on August 10, 2004 (69 FR 48526).
On August 24, 2005, the Department issued a Notice of
Negative Determination on Remand. The Notice of the second
remand determination was published in the Federal Register on
September 1, 2005 (70 FR 52129). The Department determined that
the Vantage-One software code produced by CSC, not embodied on a
physical medium, is not an article, that CSC did not shift
production of an article abroad, and that there were no
increased imports of software like or directly competitive with
the software produced at the subject facility.
Since the publication of the last remand determination, the
Department has revised its policy to acknowledge that, at least
in the context of this case, there are tangible and intangible
articles and to clarify that the production of intangible
articles can be distinguished from the provision of services.
Software and similar intangible goods that would have been
considered articles for the purposes of the Trade Act if
embodied in a physical medium will now be considered to be
articles regardless of their method of transfer.
The Department stresses that it will continue to implement
the longstanding precedent that firms must produce an article to
be certified under the Act. This determination is not altered
by the fact the provision of a service may result in the
incidental creation of an article. For example, accountants
provide services for the purposes of the Act even though, in the
course of providing those services, they may generate audit
reports or similar financial documents that might be articles on
the Harmonized Tariff Schedule of the United States. Because
the new policy may have ramifications beyond this case of which
the Department is not fully cognizant, the new policy will be
further developed in rulemaking.


Moreover, because it is the Department’s practice to apply
current policy instead of the policy which existed during the
investigative period if doing so is favorable to the workers,
the Department conducted the third remand investigation under
the new policy.
After careful review of the facts, the Department has
determined that the subject firm produced an intangible article
(financial software for Vantage-One) that would have been
considered an article if embodied in a physical medium, that
employment at the subject facility declined during the relevant
period, that CSC shifted production of the such software abroad,
and that CSC increased imports of software like or directly
competitive with that produced at the subject facility.
Conclusion
After careful review of the facts generated through the
immediate remand investigation, I determine that increased
imports of software like or directly competitive with that
produced by the subject firm contributed importantly to the
total or partial separation of a significant number of workers
at the subject facility. In accordance with the provisions of
the Act, I make the following certification:


"All workers of Computer Sciences Corporation,
Financial Services Group, East Hartford, Connecticut,
who became totally or partially separated from
employment on or after September 22, 2002, through two
years from the issuance of this revised determination,
are eligible to apply for Trade Adjustment Assistance
under Section 223 of the Trade Act of 1974."
Signed at Washington, D.C. this 24th day of March 2006.

/s/ Elliott S. Kushner
_______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-53,209

COMPUTER SCIENCES CORPORATION
FINANCIAL SERVICES GROUP (“FSG”)
EAST HARTFORD, CONNECTICUT

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 October 10, 2003, in
response to a petition filed on behalf of workers at Computer
Sciences Corporation, Financial Services Group (“FSG”), East
Hartford, Connecticut. The workers provided business and
information consulting, specialized application software, and
technology outsourcing support to customers in the financial
services industry.
The investigation revealed that the petitioning workers of
this firm or subdivision do not produce an article within the
meaning of Section 222(c)(3) 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.
Additionally, 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 firm.
Conclusion
After careful review, I determine that all workers of
Computer Sciences Corporation, Financial Services Group (“FSG”),
East Hartford, Connecticut are denied eligibility to apply for
adjustment assistance under Section 223 of the Trade Act of
1974.
Signed at Washington, D.C., this 24th day of October 2003.

/s/ Richard Church


______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance