DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,532

IMENCO CORPORATION
BAY CITY, MICHIGAN

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 (19
USC 2273), as amended, the Department of Labor herein presents
the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance as an
adversely affected secondary group.
An investigation was conducted in order to determine
whether the petitioning group of workers qualifies as adversely
affected secondary workers as suppliers of component parts to a
firm or subdivision primarily affected by increased imports or a
shift in production abroad.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance,
the following group eligibility requirements under Section
222(b) must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) the workers' firm (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) that
employed a group of workers who received a
certification of eligibility to apply for trade
adjustment assistance benefits and such supply or
production is related to the article that was the
basis for such certification; and

(3) either-

(A) the workers' firm is a supplier and the component
parts it supplied for the firm (or subdivision)
described in paragraph (2) accounted for at least 20
percent of the production or sales of the workers'
firm; or

(B) a loss of business by the workers' firm with the
firm (or subdivision) described in paragraph (2)
contributed importantly to the workers' separation or
threat of separation.

The investigation was initiated on December 21, 2005, in
response to a petition filed by a company official on behalf of
workers of Imenco Corporation, Bay City, Michigan. The workers
are engaged primarily in providing engineering services
including machine design, custom software design, and related
support activities. In addition, some machinery was produced.
The investigation revealed that criterion (2) has not been
met.
Petitioners allege that job losses were due to their firm
losing business as a supplier of component parts to a firm that
shifted production abroad or was affected by increased imports.
The investigation revealed, however, that was not the case.
The investigation showed that the customer firm is not
under certification as eligible for trade adjustment assistance
in the relevant one year period prior to the date of the
petition.
As indicated, the major portion of the work of the company
was the provision of engineering services. In order to be
considered eligible to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, the worker group seeking
certification (or on whose behalf certification is being sought)
must work for a "firm" or appropriate subdivision that produces
an article and there must be a relationship between the workers'
work and the article produced by the workers' firm or
appropriate subdivision. The software engineers described above
do not support a firm or appropriate subdivision that produces
an article domestically and thus the worker group can not be
considered import impacted or affected by a shift in production
of an article.
In addition, the firm to whom the subject firm provided
engineering services is now using domestic suppliers of those
services.
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 covered
by this petition of Imenco Corporation, Bay City, Michigan do
not qualify as adversely affected secondary workers and are
denied eligibility to apply for adjustment assistance under
section 223(b) of the Trade Act of 1974, and are also denied
eligibility to apply for alternative trade adjustment assistance
(ATAA) under Section 246 of the Trade Act of 1974.
Signed at Washington, D.C., this 31st day of January, 2006.

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