DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-71,115

CAPITAL RECORDS, LLC
EMI MUSIC OPERATIONS, NORTH AMERICA
JACKSONVILLE, ILLINOIS

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 June 9, 2009 by a company official on behalf of workers
of Capitol Records, LLC, EMI Music Operations, North America,
Jacksonville, Illinois (EMI Music Operations). The workers
provide warehousing services for Compact Discs and DVDs.
The petitioner alleges that EMI Music Operations has
contracted with domestic distributors that are utilizing capital
resources in Canada, that competing domestic distributors have
shifted the manufacturing of compact discs and DVD's to Mexico,
and that EMI Music Operations supplied services for articles
produced by a TAA certified firm.
In the course of the investigation, the investigator
requested and received information from the worker's firm and
the firm's customers.
With respect to Section 222(a) of the Act, the
investigation revealed that criterion III has not been met
because the separation or threat of separation of workers
performing warehousing services is not related to any increase
in imports of compact discs and DVDs, or a shift in production
of CDs and DVDs abroad by Capital Records. Additionally, the
supply of warehousing services for compact discs and DVDs sold
in the United States has not been shifted abroad.
With respect to Section 222(c) of the Act, the
investigation revealed that criterion II has not been met
because the workers did not supply a service that was used in
the production of an article or the supply of a service that was
the basis for a TAA-certification by a firm whose workers were
certified for TAA in a period relevant to this investigation.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because the workers' firm has not been identified in an
affirmative finding of injury by the ITC.


Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Capitol Records, LLC,
EMI Music Operations, North America, Jacksonville, Illinois,
who warehousing for compact discs and DVDs 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 11th day of August, 2009

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