DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-57,584

CREDENCE SYSTEMS CORPORATION
INCLUDING ON-SITE LEASED WORKERS OF
HR STAFFING, ACROTEK, AND VOLT
SIMI VALLEY, CALIFORNIA

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, 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 workforce representative on behalf
of workers at Credence Systems Corporation, Simi Valley,
California. The workers at the subject location produced
electronic test systems (e.g.- Sapphire and EXA); they were not
separately identifiable by articles produced.
The investigation revealed that criteria (a)(2)(A)(I.B) and
(a)(2)(B)(II.B) were not met.
The investigation revealed that the subject firm also leased
workers on-site from HR Staffing, Acrotek, and Volt to produce
electronic test systems (e.g.- Sapphire and EXA).

The investigation further revealed that subject plant and
company-wide sales and production of electronic test systems (e.g.-
Sapphire and EXA) increased during the period of January through
July 2005 compared to the same period in 2004.
Moreover, the subject firm did not import electronic test
systems (e.g.- Sapphire and EXA), nor did it shift production to a
foreign country during 2004 or the period of January through July
2005.
The investigation also revealed that the subject plant
recently shifted production to another domestic location, which
contributed to the layoffs at the subject plant.
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, I determine that
all workers of Credence Systems Corporation, including on-site
leased workers of HR Staffing, Acrotek, and Volt, Simi Valley,
California 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 18th day of August 2005

/s/ Elliott S. Kushner

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