DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-55,907

GLAXOSMITHKLINE
BRISTOL, TENNESSEE

Notice of Revised Determination
on Reconsideration

On February 23, 2005, the Department issued an Affirmative
Determination Regarding Application on Reconsideration applicable
to workers and former workers of the subject firm. The notice
was published in the Federal Register on March 15, 2005 (70 FR
12737).
The previous investigation initiated on November 7, 2004,
resulted in a negative determination issued on December 9, 2004,
based on the finding that imports of Augmentin and Amoxil did not
contribute importantly to worker separations at the subject firm
and no shift of production to a foreign source occurred. The
denial notice was published in the Federal Register on January
24, 2005 (70 FR 3390).
In the request for reconsideration, the petitioner provided
additional information regarding subject firm’s products. In
particular, it was revealed that Augmentin and Amoxil, addressed
by the company official during the original investigation as
products manufactured at GlaxoSmithKline in Bristol, Tennessee,
are brand names of penicillin-based antibiotics. It was further
revealed that other companies manufacture antibiotics equivalent
to Augmentin and Amoxil, but use different generic names for
these products. Therefore, surveys of customers conducted during
the original investigation did not reveal purchases from any
sources other than the subject firm.
The Department conducted new customer surveys requesting
information on purchases of penicillin-based antibiotics like or
directly competitive with Augmentin and Amoxil. The result of
this survey showed that the largest declining customer of the
subject firm significantly increased its reliance on purchases of
penicillin-based antibiotics like or directly competitive with
Augmentin and Amoxil from other domestic firms during the
relevant time period. However, the customer had no knowledge of
the country of origin of these products.
Upon further investigation, it was revealed that
GlaxoSmithKline, Bristol, Tennessee is the only domestic
manufacturer of Augmentin and Amoxil and their generic
equivalents in the United States. All other generic brands sold
on the domestic market are imports. Consequently, customers
increasing their reliance on purchases from other domestic firms,
increased their reliance on imports.
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 firm are age 50 or
over and possess skills that are not easily transferable.
Competitive conditions within the industry are adverse.
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
GlaxoSmithKline, Bristol, Tennessee, 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 GlaxoSmithKline, Bristol, Tennessee, who
became totally or partially separated from employment on or
after October 11, 2003 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, and
are eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974."

Signed in Washington, D.C. this 8th day of April 2005.

/s/ Elliott S. Kushner

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


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-55,907

GLAXOSMITHKLINE
BRISTOL, TENNESSEE

Negative 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 November 2, 2004, in
response to a petition filed by a company official on behalf of
workers of GlaxoSmithKline, Bristol, Tennessee. The workers
produce the antibiotics AUGMENTIN and AMOXIL.
The investigation revealed that criteria (I.C) and (II.B) have
not been met.
The investigation revealed that there were no company imports
of AUGMENTIN and AMOXIL, nor was there a shift in production of
AUGMENTIN and AMOXIL from GlaxoSmithKline, Bristol, Tennessee to a
foreign country during the period under investigation.
The Department of Labor conducted a survey of major customers
of the subject firm regarding their purchases of AUGMENTIN and
AMOXIL in 2002, 2003, and January through October of 2004 over the
corresponding 2003 period. The survey revealed that none of the
respondents imported during the relevant period.
In addition, 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 assis-
tance (ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the worker group must be certified
eligible to apply for trade adjustment assistance (TAA). Since
the workers are denied eligibility to apply for TAA, the workers
cannot be certified eligible for ATAA.
Conclusion
After careful review, I determine that all workers of
GlaxoSmithKline, Bristol, Tennessee are denied eligibility to apply
for adjustment assistance under Section 223 of the Trade Act of
1974, and are also denied eligibility to apply for alternative
trade adjustment assistance under Section 246 of the Trade Act of
1974.
Signed in Washington, D.C. this 9th day of December, 2004.

/s/ Elliott S. Kushner

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