DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-53,248

GATEWAY, INC.

HAMPTON, VIRGINIA (TA-W-53,248)
NORTH SIOUX CITY, SOUTH DAKOTA (TA-W-53,248A)
SIOUX FALLS, SOUTH DAKOTA (TA-W-53,248B)
KANSAS CITY, MISSOURI (TA-W-53,248C)
LAKEWOOD, COLORADO (TA-W-53,248D)
POWAY, CALIFORNIA (TA-W-53,248E)

Notice of Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance and
Alternative Trade 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 October 15, 2003 in
response to a petition filed by a company official on behalf of
workers at six locations of Gateway, Inc. The workers produce
computers at three locations: Hampton, Virginia; North Sioux
City, South Dakota; and Sioux Falls, South Dakota. At the other
locations the workers are engaged in administrative functions not
related to production facilities.
It has been determined with respect to workers at Hampton,
Virginia; North Sioux City, South Dakota and Sioux Falls, South
Dakota, all of the criteria have been met.
The subject firm has curtailed production at the three
locations and shifted production to countries that are a party to
free trade agreements with the United States or are beneficiary
countries. Reliance on computers imported from production
facilities abroad has increased.
In accordance with Section 246 the Trade Act of 1974 (26 USC
2813), as amended, the Department of Labor herein presents the
results of its investigation regarding certification of eligibility
to apply for alternative trade adjustment assistance (ATAA) for
older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the group eligibility requirements
of Section 246 of the Trade Act must be met. The Department has
determined in this case that the requirements of Section 246 have
been met.
A significant number of workers at the three above locations
are age 50 or over and possess skills that are not easily
transferable. Competitive conditions within the industry are
adverse.
It has been determined with respect to workers at Kansas
City, Missouri; Lakewood, Colorado and Poway, California that the
criteria have not been met.
The workers at these three locations are engaged in
administrative functions that are not in direct support of
computer manufactories. They 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 firm.
Additionally, the transfer of administrative functions to foreign
locations cannot be used as a basis for certification.
Conclusion
After careful review of the facts obtained in the
investigation, I conclude that with respect to workers at
Hampton, Virginia; North Sioux City, South Dakota; and Sioux
Falls, South Dakota there have been shifts in production and
increased reliance on imports of articles that are like or
directly competitive with those produced by the subject firm or
subdivision. In accordance with the provisions of the Act, I
make the following certification:


"All workers of Gateway, Inc., Hampton, Virginia; North
Sioux City, South Dakota, and Sioux Falls, South Dakota who
became totally or partially separated from employment on or
after October 13, 2002 through two years from the date of
certification are eligible to apply for adjustment assis-
tance under Section 223 of the Trade Act of 1974, and are
also eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974."
I further determine that all workers at Gateway, Inc.,
Kansas City, Missouri; Lakewood, California, and Poway,
California, are denied eligibility to apply for adjustment
assistance under Section 223 of the Trade Act of 1974.
Signed in Washington, D.C. this 19th day of November 2003

/s/ Richard Church
_______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance