Denied
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TAW-75177  /  Digital Networking, LLC (Denver, CO)

Petitioner Type: Company
Impact Date:
Filed Date: 02/04/2011
Most Recent Update: 02/28/2011
Determination Date: 02/28/2011
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-75,177

DIGITAL NETWORKING, LLC
DENVER, COLORADO

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 to apply 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 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
February 4, 2011 on behalf of the worker(s) of Digital Networking, LLC,
Denver, Colorado. The subject firm supplies information technology
consulting services.
The petition states that "services are being outsourced to a
foreign country." Three documents were submitted in support of the
petition.
With respect to Section 222(a) and Section 222(c) of the Act, the
investigation revealed that Criterion I has not been met because the
subject firm did not employ a worker group during the relevant time
period. A worker group means "three or more workers in a firm or an
appropriate subdivision thereof." 29 CFR 90.2 The workers identified
in the petition are not employees of the subject firm but are
independent contractors. Because there is no worker group at the
subject firm, Criterion I cannot be met.
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 by name in an affirmative finding of
injury by the U.S. International Trade Commission.
Conclusion
After careful review of the facts obtained in the investigation,
I determine that worker(s) of Digital Networking, LLC, Denver,
Colorado 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 28th day of February, 2011


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