DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-73,008

NORTELS NETWORKS, LTD
CDMA CORE DEVELOPMENT
CARRIER NETWORKS ORGANIZATION
RICHARDSON, TEXAS

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.

Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission (ITC) as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(f) of the Act, 19 U.S.C. § 2272(f).
The group eligibility requirements for workers of a firm
under Section 222(f) of the Act, 19 U.S.C. § 2272(f), can be
satisfied if the following criteria are met:
(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a
domestic industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of
1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));
(2) the petition is filed during the 1-year period
beginning on the date on which--
(A) a summary of the report submitted to the
President by the International Trade Commission
under section 202(f)(1) with respect to the
affirmative determination described in paragraph
(1)(A) is published in the Federal Register under
section 202(f)(3); or
(B) notice of an affirmative determination described
in subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b)(1), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on December 3, 2009 by three workers. The petition states
that "this petition is filed on behalf of wireless CDMA MTX
Group" at Nortel, Richardson, Texas and states that worker group
separations are due to "1) Part of development/production of
CDMA MTX Telecommunication switch had been outsourced to Tata
Consultancy (TCS) in India. 2) Part of development/production of
CDMA had been shifted to Guang Dong Nortel (GDNT) in Guang Dong,
China." The workers supply engineering services.
Because the workers of the Richardson, Texas facility are
departmentalized by function, are separately identifiable by
service supplied, and the petitioners are members of the CDMA
Core Development unit within the Carrier Networks Organization,
the Department determines that, for purposes of the Trade Act of
1974, as amended, the worker group covered is Nortel Networks,
LTD, CDMA Core Development, Carrier Networks Organization,
Richardson, Texas. Furthermore, the workers of Nortel Networks,
LTD, CDMA Core Development, Carrier Networks Organization,
Richardson, Texas, are considered separately identifiable from
the following workers groups at the Richardson, Texas facility
eligible to apply for Trade Adjustment Assistance (TAA).
TA-W-70,897 Nortel Networks, CNM and Tools Release Division
and Network Management Platform, formerly known as Operations
and Administration Management, Richardson, Texas (Richardson CMP
and CNM Facility): On July 15, 2009, former workers of this
group were certified eligible to apply for TAA based on a shift
of development and testing of networking software services to
China.
TA-W-72,340 Nortel Networks, Adaptive Applications Engine
Department (AAE), Richardson, Texas: On January 14, 2010, former
workers of this group were certified eligible to apply for TAA
based on a shift of development and testing of networking
software services to Canada, Turkey and Vietnam.
TA-W-72,889 Nortel Networks, Ltd., GSM/UMTS Voice & Packet
Core Department, Carrier Networks Business Unit, Richardson,
Texas: On February 4, 2010, former workers of this group were
certified eligible to apply for TAA based on a shift of
designing, manufacturing, and testing of switchers to China and
India.
TA-W-72,890 Nortel Networks, Ltd., 4G LTE, Richardson,
Texas: On March 25, 2010, former workers of this group were
certified eligible to apply for TAA based on a shift of design
and engineering services for telecommunication products (i.e.
LTE packet core and the 4G LTE) to China and India.
During the investigation, the Department received
information that revealed that, although there was a shift of
work from Nortel Networks, LTD, CDMA Core Development, Carrier
Networks Organization, Richardson, Texas to India, no such
activity had taken place since 2005; the subject subdivision did
not acquire from a foreign source services like or directly
competitive with the engineering services supplied by Nortel
Networks, LTD, CDMA Core Development, Carrier Networks
Organization, Richardson, Texas; and workers of Nortel
Networks, LTD, CDMA Core Development, Carrier Networks
Organization, Richardson, Texas are not supplying engineering
services to any of the afore-mentioned facilities that
employed a worker group eligible to apply for TAA.
In 2009, Nortel Networks, LTD filed for bankruptcy and has
sold the various business units' functions, including functions
that were within the CDMA Core Development unit of the Carrier
Networks Organization at Richardson, Texas.
With respect to Section 222(a) of the Act, the
investigation revealed that Criterion II has not been met
because the subject firm did not import services like or
directly competitive with the engineering services provided at
the subject firm during relevant period of the investigation,
nor shift or acquire services abroad during the same period.
With respect to Section 222(c) of the Act, the
investigation revealed that Criterion 2 has not been met. The
workers did not supply a service that was used by a firm with
a Trade Adjustment Assistance (TAA) certification.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been met
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 Nortel Networks, LTD,
CDMA Core Development, Carrier Networks Organization,
Richardson, Texas, 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 16th day of July, 2010

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