DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-56,826

NORTH AMERICAN COMMUNICATIONS
INCLUDING LEASED WORKERS OF
SPHERION AND LABOR READY
DUCANSVILLE, PENNSYLVANIA

Negative Determination 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
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 March 24, 2005 in response
to a petition filed on behalf of workers at North American
Communications, Inc., Duncansville, Pennsylvania. The workers at
the subject facility produce and ship direct mail pieces.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) were not met.
The investigation revealed that due to prevailing business
conditions in the industry, employment at the subject facility is
seasonal, typically increasing in the fourth quarter of the year
and decreasing in the first quarter of the following year.
Comparing equivalent time periods, employment at the subject
facility increased in 2004 compared with 2003, increased in January
of 2005 compared with January of 2004, and increased in February of
2005 compared with February of 2004.
The investigation also revealed that the subject facility did
not shift production to a foreign country in 2003, 2004, or January
through February of 2005. North American Communications allocates
production to different facilities based on the geographic needs of
a particular customer. Equipment was moved from the subject
facility to Mexico, but that is because the facility functions as a
supplier of refurbished equipment to Mexico. This did not result
in diminished production capacity at the subject facility since any
equipment that was moved to Mexico was or will be replaced in
Pennsylvania.
The subject facility's production increased in 2004 compared
to 2003, and any production drop subsequent to that is unrelated to
the Mexican operation, which is linked to a different region of the
United States.
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 assistance
(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 North
American Communication, Inc., Duncansville, Pennsylvania are denied
eligibility to apply for adjustment assistance under Section 223 of
the Trade Act of 1974, and 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/ Richard Church

______________________________
Richard Church
Certifying Officer, Division of
Trade Adjustment Assistance