Denied
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TAW-70330  /  Siemens Product Life Cycle Management Software, Inc. (Troy, MI)

Petitioner Type: Workers
Impact Date:
Filed Date: 05/20/2009
Most Recent Update: 12/23/2009
Determination Date: 12/23/2009
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-70,330

SIEMENS PRODUCT LIFE CYCLE MANAGEMENT SOFTWARE, INC.
A SUBSIDIARY OF SIEMENS INDUSTRY HOLDINGS, INC.
FORMERLY KNOWN AS USG CAPITAL CORPORATION
TROY, MICHIGAN

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (c)
or (f) of Section 222 of the Act, 19 U.S.C. § 2272(a), (c), (f).
For the Department of Labor to issue a certification for workers
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), the
following three criteria must be met:
I. The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

II. The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely, AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(i)(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm.

III. The third criterion requires that the increase in imports
or shift/acquisition must have contributed importantly to
the workers' separation or threat of separation. See
Sections 222(a)(2)(A)(iii) and 222(a)(2)(B)(ii) of the Act,
19 U.S.C. §§ 2272(a)(2)(A)(iii), 2272(a)(2)(B)(ii).

Section 222(d) of the Act, 19 U.S.C. § 2272(d), defines the
terms Supplier and Downstream Producer. For the Department to
issue a secondary worker certification under Section 222(c) of
the Act, 19 U.S.C. § 2272(c), to workers of a Supplier or a
Downstream Producer, the following criteria 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 is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article or
service that was the basis for such certification; and

(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm 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
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.

The investigation was initiated in response to a petition
filed on May 20, 2009, by three workers on behalf of workers of
Siemens Product Life Cycle Management Software, Inc., a
subsidiary of Siemens Industry Holdings, Inc., formerly known
as USG Capital Corporation, Troy, Michigan (Siemens Product
Life). Workers at the firm are engaged in employment related to
the supply of technical software support services.
The petitioning worker group alleges that worker
separations are attributable to technical software support
services now being performed in India.
With respect to Section 222(a) of the Act, the
investigation revealed that criteria II and III were not met.
Siemens Product Life did not import services like or
directly competitive with the services supplied by the workers
in 2007, 2008, or in January through May 2009 and did not
shift the supply of these services to a foreign country during
the relevant period.
The investigation included a survey of Siemens Product
Life's major declining customers in 2007, 2008, and during
January through June 2009, to determine whether technical
support software services were acquired from foreign sources
during the relevant period. The surveys revealed no import
purchases during the period under investigation. A survey of
"second tier purchases of services" was not conducted because
the customers utilizing theses services are not purchasing
services for incorporation into a finished article.
With respect to Section 222(c) of the Act, the
investigation revealed that criterion II has not been met.
Siemens Product Life is not a Supplier or Downstream Producer to
a firm that employed a worker group covered by an existing Trade
Adjustment Assistance certification.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been met
because Siemens Product Life has not been identified in an
affirmative finding of injury by the International Trade
Commission.


Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Siemens Product Life
Cycle Management Software, Inc., a subsidiary of Siemens
Industry Holdings, Inc., formerly known as USG Capital
Corporation, Troy, Michigan, who supply technical and software
support services, are denied eligibility to apply for adjustment
assistance under Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C., this 23rd day of December, 2009


/S/ Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Division of
Trade Adjustment Assistance