DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-57,573

XIOTECH CORPORATION
EDEN PRAIRIE, MINNESOTA

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. 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 July 19, 2005, in response
to a petition filed by a state agency representative on behalf of
workers at Xiotech Corporation, Eden Prairie, Minnesota. The
workers at the subject facility assemble, test, and repair old and
new data storage units.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II. B) have not been met.
The subject firm did not import assembled data storage units
or shift the assembly, testing, or repair abroad during 2003, 2004,
or January through June 2005.
The company made a corporate decision to discontinue an
obsolete line of data storage unit utilizing propriety designs.
This resulted in the elimination repair that is now conducted by
the originators of the component products. Assembly and testing was
outsourced domestically to a US firm.
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 of the facts obtained in this
investigation, I determine that all workers of Xiotech Corporation,
Eden Prairie, Minnesota 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 25th day of August 2005.


/s/ Linda G. Poole
______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance