DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,230

IBM - INTEGRATED SUPPLY CHAIN
ROCHESTER, MINNESOTA

Negative Determination Regarding 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 October 28, 2005 in
response to a petition filed on behalf of workers of the Integrated
Supply Chain of IBM, Rochester, Minnesota. The workers produce
computer equipment.
The investigation revealed that criteria I.C and II.B have not
been met.
Sales and production of computer equipment produced by the
Integrated Supply Chain increased sharply in 2004 compared with
2003 and did not decline significantly in January through October
2005 compared with the same period in 2004. Increases in sales are
anticipated in coming months. Additionally, the subject firm did
not shift production to foreign locations.
Separations of IBM workers at the Integrated Supply Chain in
Rochester were caused by their replacement with contract leased
workers making the same product at the same location. Overall
employment has not declined.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of the Integrated
Supply Chain of IBM, Rochester, Minnesota are denied eligibility
to apply for adjustment assistance under Section 223 of the Trade
Act of 1974.
Signed in Washington, D.C., this 8th day of December, 2005.

/s/ Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance