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TAW-75181  /  Sony Music Holdings Inc., D/B/A Sony DADC Americas ( (Pitman, NJ)

Petitioner Type: State
Impact Date: 02/07/2010
Filed Date: 02/08/2011
Most Recent Update: 05/19/2011
Determination Date: 05/19/2011
Expiration Date: 08/18/2013

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-75,181

SONY MUSIC HOLDINGS, INC., D/B/A SONY DADC AMERICAS
A SUBSIDIARY OF SONY CORPORATION OF AMERICA
INCLUDING ON-SITE LEASED WORKERS FROM
EMPLOYMENT PLUS, AEROTEK, AND ROBERT HALF
PITMAN, NEW JERSEY


Notice of Revised Determination
on Reconsideration

On June 28, 2011, the Department of Labor (Department) issued
a Notice of Affirmative Determination Regarding Application for
Reconsideration for the workers and former workers of Sony Music
Holdings, Inc. (“SMHI”), d/b/a Sony DADC Americas, a subsidiary
of Sony Corporation of America, including on-site leased workers
from Employment Plus, Aerotek, and Robert Half, Pitman, New
Jersey (subject firm) to apply for Trade Adjustment Assistance.
The Department’s Notice was published in the Federal Register on
July 8, 2011 (76 FR 40400). Workers at the subject firm were
engaged in activities related to the production of optical discs
containing content.
During the reconsideration investigation, the Department
received new information that revealed that the subject firm
shifted to a foreign country a portion of the production of
articles like or directly competitive with the articles produced by
the subject firm workers.

Criterion I has been met because a significant number or
proportion of workers at the subject firm have become totally or
partially separated or are threatened with such separation.
Criterion II has been met because the subject firm shifted to
a foreign country a portion of the production of articles like or
directly competitive with the articles produced by the subject firm
workers.
Criterion III has been met because the shift in production
contributed importantly to the workers’ separation or threat of
separation at the subject firm.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I determine that workers and former workers of the
subject firm, who are engaged in employment related to the
production of optical discs containing content, meet the worker
group certification criteria under Section 222(a) of the Act, 19
U.S.C. § 2272(a). In accordance with Section 223 of the Act, 19
U.S.C. § 2273, I make the following certification:






"All workers of Sony Music Holdings, Inc. (“SMHI”), d/b/a
Sony DADC Americas, a subsidiary of Sony Corporation of
America, including on-site leased workers from Employment
Plus, Aerotek, and Robert Half, Pitman, New Jersey, who
became totally or partially separated from employment on or
after February 7, 2010, through two years from the date of
this revised certification, and all workers in the group
threatened with total or partial separation from employment on
date of certification through two years from the date of
certification, are eligible to apply for adjustment assistance
under Chapter 2 of Title II of the Trade Act of 1974, as
amended.”
Signed in Washington, D.C., this 18th day of August, 2011

/s/ Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance
4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-75,181

SONY MUSIC HOLDINGS INC., D/B/A SONY DADC AMERICAS (“SMHI”)
A SUBSIDIARY OF SONY CORPORATION OF AMERICA
INCLUDING ON-SITE LEASED WORKERS FROM EMPLOYMENT PLUS,
AEROTEK, AND ROBERT HALF
PITMAN, NEW JERSEY

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 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 8, 2011 by a state workforce office on behalf of
workers of Sony Music Holdings Inc., d/b/a Sony DADC Americas
(“SMHI”), a subsidiary of Sony Corporation of America, Pitman,
New Jersey. The workers were engaged in activities related to
the production of optical discs containing content. The
investigation revealed the worker group includes on-site leased
workers from Employment Plus, Aerotek, and Robert Half.
With respect to Section 222(a) of the Act, the investigation
revealed that Criterion II and III have not been met because
there was no increase in imports by the workers’ firm or a
customer. There was no shift or acquisition of production by the
workers’ firm to a country abroad. The shifts in production that
occurred were all located within the United States. The
petitioner alleges the subject firm is shifting equipment and
machinery abroad to Mexico. The investigation revealed that the
machinery transferred was not used to increase production, but as
replacement machinery. The Department of Labor surveyed the
subject firm’s major declining customers regarding their
purchases of optical discs containing content. The survey
revealed that the respondents did not increase imports of optical
discs containing content, while decreasing purchases from the
subject firm. A bid survey was also conducted. The survey
revealed that the subject firm was not the lowest domestic
bidder.
With respect to Section 222(c) of the Act, the investigation
revealed that Criterion (2) has not been met because the workers
did not produce component parts or supply a service that was
directly supplied to a firm with a currently certified Trade
Adjustment Assistance (TAA) worker group.
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 International Trade Commission.


Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Sony Music Holdings
Inc., d/b/a Sony DADC Americas (“SMHI”), a subsidiary of Sony
Corporation of America, including on-site leased workers from
Employment Plus, Aerotek, and Robert Half, Pitman, New Jersey who
were engaged in activities related to the production of optical
discs containing content 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 19th day of May, 2011




/s/Elliott S. Kushner_______
ELLIOTT S. KUSHNER
Certifying Officer, Office of
Trade Adjustment Assistance





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