DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,841

CROSSROADS SYSTEMS, INC.
AUSTIN, TEXAS

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. 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 February 14, 2006,
in response to a petition filed by a State agency
representative on behalf of the workers of Crossroads
Systems, Inc., Austin, Texas. The workers are engaged in
the production of storage routing devices (i.e. computer
hardware, software, routers and servers).
The investigation determined that criteria
(a)(2)(A)(I.C.) and (a)(2)(B)(II.B.) have not been met for
workers of the subject firm.
The investigation revealed that subject firm did not
shift the production of storage routing devices (i.e.
computer hardware, software, routers and servers) to a
foreign country, nor did the subject firm import storage
routing devices (i.e. computer hardware, software, routers
and servers) from a foreign country.
The Department of Labor surveyed the subject firm's
major declining customers regarding their purchases of
storage routing devices (i.e. computer hardware, software,
routers and servers) during 2004, 2005 and January 2006.
These surveys determined that none of the customers
imported storage routing devices during the relevant
period.
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 workers of
Crossroads Systems, Inc., Austin, Texas 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 22nd day of May, 2006.

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