DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,073

IKANO COMMUNICATIONS, INC.
INCLUDING ON-SITE LEASED WORKERS OF FOCUS SERVICES, INC.
SALT LAKE CITY, UTAH

Notice of Revised Determination
on Reconsideration

The initial investigation, initiated March 25, 2011, resulted
in a negative determination, issued on June 7, 2011, that was based
on the absence of a produced article. The determination was
applicable to workers and former workers of IKANO Communications,
Inc., Salt Lake City, Utah (IKANO). The notice of determination
was published in the Federal Register on June 24, 2011 (76 FR
37155). The workers’ firm supplies internet connections and cloud
computing services. The worker group includes on-site leased
workers from FOCUS Services, Inc.
As required by the Trade Adjustment Assistance (TAA) Extension
Act of 2011 (the TAAEA), the investigation into this petition was
reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of title
II of the Trade Act of 1974, as amended by the TAAEA, to the facts
of this petition.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that Section
222(a)(1) has been met because a significant number or proportion
of the workers at IKANO have become totally or partially separated,
or are threatened with such separation, and that Section
222(a)(2)(B) has been met because IKANO has acquired from a
foreign country services like or directly competitive with those
services supplied by the subject workers which contributed
importantly to worker group separations at IKANO.
Conclusion
After careful review, I determine that the workers of IKANO
Communications, Inc., Salt Lake City, Utah, 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 IKANO Communications, Inc., including on-site
leased workers from FOCUS Services, Inc., Salt Lake City,
Utah, who became totally or partially separated from
employment on or after March 24, 2010, through two years from
the date of this certification, and all workers in the group
threatened with total or partial separation from employment on
December 20, 2011 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 25th day of November, 2011

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


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-80,073

IKANO COMMUNICATIONS, INC.
SALT LAKE CITY, UTAH

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance
And Alternative Trade 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) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). 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:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such 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 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers’ separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) there has been a shift in production by such workers’
firm or subdivision to a foreign country of articles like
or directly competitive with articles which are produced
by such firm or subdivision; and
(ii)(I) the country to which the workers’ firm has
shifted production of the articles is a party to a free
trade agreement with the United States;
(II)the country to which the workers’ firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), 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 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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms “Supplier” and “Downstream Producer.”
The investigation was initiated in response to a petition
filed on March 25, 2011 on behalf of workers of IKANO
Communications, Inc., Salt Lake City, Utah (IKANO). The workers’
firm is engaged in activities related to the supply of internet
connections and cloud computing services. The subject worker group
includes workers engaged activities related to the supply of
phone customer service technical support and billing support
services.
The petitioners alleged that work is being outsourced to a
foreign supplier.
During the course of the investigation, information was
collected from the workers’ firm and petitioners.
The investigation revealed that IKANO does not produce an
article within the meaning of Section 222(a) or Section 222(b) of
the Act. In order to be considered eligible to apply for
adjustment assistance under Section 223 of the Trade Act of 1974,
the worker group seeking certification (or on whose behalf
certification is being sought) must work for a “firm” or
appropriate subdivision that produces an article. The definition
of a firm includes an individual proprietorship, partnership, joint
venture, association, corporation (including a development
corporation), business trust, cooperative, trustee in bankruptcy,
and receiver under decree of any court.
During the investigation, the Department obtained information
that revealed that the workers’ firm did not produce an article;
rather, the workers’ firm supplied services related to supply of
internet connections and cloud computing services.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
trade adjustment assistance (TAA). Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.











Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of IKANO
Communications, Inc., Salt Lake City, Utah, engaged in activities
related to the supply of internet connections and cloud computing
services, are denied eligibility to apply for adjustment assistance
under Section 223 of the Trade Act of 1974, and are also denied
eligibility to apply for alternative trade adjustment assistance
under Section 246 of the Trade Act of 1974.
Signed in Washington, D.C., this 7th day of June, 2011


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



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