DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-54,629

MOTOROLA, INC.
INFORMATION TECHNOLOGY
SEMICONDUCTOR PRODUCTS SECTOR
TEMPE, ARIZONA


Notice of Negative Determination
On Reconsideration

On July 22, 2004, the Department of Labor issued a Notice of
Affirmative Determination Regarding Application for
Reconsideration for the workers and former workers of the subject
firm. The Notice of determination was published in the Federal
Register on August 4, 2004 (69 FR 47182).
The Department issued the initial denial for Trade
Adjustment Assistance (TAA) because the investigation revealed
that workers provided software and systems design, development,
implementation and maintenance in support of hundreds of
Semiconductor Products Sector’s global automated manufacturing
and business applications. The investigation also revealed that
maintenance and development functions were shifting to India and
that Semiconductor Products Sector (SPS) revenue increased during
the relevant time period.
Service workers could be certified for TAA if they directly
support an affiliated facility whose workers independently
qualify for TAA or are determined to be TAA certifiable.

The petitioners allege in the request for reconsideration
that the subject company’s semiconductor sales decreased, that
semiconductor production was shifted to Taiwan, and that software
development functions were shifted to India.
On reconsideration, the Department investigated whether the
subject company’s semiconductor sales decreased during the
relevant time periods (2002, 2003, January-March 2003 and
January-March 2004). A review of the additional information
revealed increased sales in the Semiconductor Product Sector
during the investigation period.
Under Section 113 of the Trade Adjustment Assistance Reform
Act of 2002 (PL 107-210), workers who are laid off as a result of
a shift in production to a country that is party to a free trade
agreement with the United States, or a country that is named as a
beneficiary under the Andean Trade Preference Act, the African
Growth and Opportunity Act or the Caribbean Basin Economic
Recovery Act, may be qualified for TAA certification.
Taiwan is not party to a free trade agreement with the
United States or named as a beneficiary under any of the above
referenced Acts. Therefore, even if the petitioner’s allegation
was true, a production shift to Taiwan absent increased imports
by the subject company of like or directly competitive products,
is not a basis for TAA certification. Further, the TAA program
does not recognized the shift of service functions abroad as a
basis for certification.
Conclusion
After reconsideration, I affirm the original notice of
negative determination of eligibility to apply for worker
adjustment assistance for workers and former workers of Motorola,
Inc., Information Technology, Semiconductor Products Sector,
Tempe, Arizona.
Signed at Washington, D.C., this 20th day of August 2004.

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