DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-64,383

INTERNATIONAL BUSINESS MACHINES CORPORATION
IBM INTEGRATED SUPPLY CHAIN OPERATIONS
HOPEWELL JUNCTION, NEW YORK

Notice of Negative Determination
Regarding Application for Reconsideration

By application dated February 21, 2009, the petitioner
requested administrative reconsideration of the Department's
negative determination regarding eligibility to apply for Trade
Adjustment Assistance (TAA) and Alternative Trade Adjustment
Assistance (ATAA), applicable to workers and former workers of
the subject firm. The denial notice was signed on January 2,
2009 and published in the Federal Register on January 26, 2009
(74 FR 4464).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) if in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.
The negative TAA determination issued by the Department for
the workers of International Business Machines Corporation, IBM
Integrated Supply Chain Operations, Hopewell Junction, New York
was based on the findings that the worker group did not produce
an article within the meaning of Section 222 of the Trade Act of
1974. The investigation revealed that workers of the subject
firm provided internal maintenance and development services for
various web based applications. The investigation further
revealed that no production of article(s) occurred within the
firm or appropriate subdivision during the relevant period.
The petitioner in the request for reconsideration contends
that the Department erred in its interpretation of the work
performed by the workers of the subject firm. The petitioner
states that from 1996 to 2007 the workers of the subject firm
developed applications that “were being deployed in China for
education and financial purposes”. The petitioner also indicates
that the workers maintained and created applications for
customers.
When assessing eligibility for TAA, the Department
exclusively considers production and import impact during the
relevant time period (one year prior to the date of the
petition). Events occurring between 1996 and October 2007 are
outside of the relevant time period as established by the
petition date of November 4, 2008, and thus cannot be considered
in this investigation.
The investigation revealed that during the relevant period,
the workers of International Business Machines Corporation, IBM
Integrated Supply Chain Operations, Hopewell Junction, New York
managed existing applications in the IBM Procurement portfolio
that were used internally for purposes such as invoice support,
web orders, and procurement.
These functions, as described above, are not considered
production of an article within the meaning of Section 222 of the
Trade Act. While the provision of services may result in printed
material or can be stored electronically, it is incidental to the
provision of these services. No production took place at the
subject facility, nor did the workers support production of an
article at any domestic location during the relevant period.
The petitioner also alleges that job functions have been
shifted from the subject firm to China.
The allegation of a shift to another country might be
relevant if it was determined that workers of the subject firm
produced an article. However, the investigation determined that
workers of International Business Machines Corporation, IBM
Integrated Supply Chain Operations, Hopewell Junction, New York
do not produce an article within the meaning of Section 222 of
the Trade Act of 1974.
Conclusion
After review of the application and investigative findings,
I conclude that there has been no error or misinterpretation of
the law or of the facts which would justify reconsideration of
the Department of Labor's prior decision. Accordingly, the
application is denied.

Signed in Washington, D.C., this 24th day of March, 2009.


/s/ Elliott S. Kushner
______________________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance
4510-FN-P


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-64,383

INTERNATIONAL BUSINESS MACHINES CORPORATION
IBM INTEGRATED SUPPLY CHAIN OPERATIONS
HOPEWELL JUNCTION, NEW YORK

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 investigation was initiated on November 10, 2008, in
response to a petition filed by a One-Stop Operator on behalf of
workers of International Business Machines Corporation, IBM
Integrated Supply Chain Operations, Hopewell Junction, New York.
Workers at the subject firm provided internal maintenance and
development services for various web based applications.
The investigation revealed that IBM Integrated Supply Chain
Operations, Hopewell Junction, New York, does not produce an
article within the meaning of Section 222(a)(2) of the Act. 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 workers do not support a firm or
appropriate subdivision that produces an article domestically and
thus the worker group cannot be considered import impacted or
affected by a shift in production of an article.
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 the
investigation, I determine that all workers of International
Business Machines Corporation, Integrated Supply Chain Operations,
Hopewell Junction, New York, 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 2nd day of January 2009

/s/ Linda G. Poole


_____________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance













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