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TAW-80084  /  Dietrich Industries, Inc. (Blairsville, PA)

Petitioner Type: Company
Impact Date: 04/01/2010
Filed Date: 04/04/2011
Most Recent Update: 07/20/2011
Determination Date: 07/20/2011
Expiration Date: 11/17/2013

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,084

DIETRICH INDUSTRIES, INC.
INFORMATION SYSTEMS DIVISION
BLAIRSVILLE, PENNSYLVANIA

Notice of Revised Determination
on Reconsideration


The initial investigation, initiated April 4, 2011, resulted
in a negative determination, issued on July 20, 2011. The notice
of negative determination was published in the Federal Register on
August 12, 2011 (76 FR 50269-50271). The workers are engaged in
activities related to software development. Dietrich Industries,
Inc., Information Systems Division, Blairsville, Pennsylvania.
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 Departmental Findings provided during the initial
investigation, the Department of Labor determines that there was a
shift of services to a foreign location which contributed
importantly to worker separations at Blairsville, Pennsylvania.
Section 222(a)(1) has been met because a significant number
or proportion of the workers in such workers’ firm have become
totally or partially separated, or are threatened to become totally
or partially separated.
Section 222(a)(2)(B) has been met because the workers’ firm
has shifted to a foreign country the supply of a service like or
directly competitive with that which is supplied by the workers
which contributed importantly to worker group separations at
Dietrich Industries, Inc., Information Systems Division,
Blairsville, Pennsylvania.
Conclusion
After careful review, I determine that workers of Dietrich
Industries, Inc., Information Systems Division, Blairsville,
Pennsylvania, who were engaged in employment related to software
development services 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 Dietrich Industries, Inc., Information
Systems Division, Blairsville, Pennsylvania who became
totally or partially separated from employment on or after
April 1, 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 17th day of November, 2011

/s/ Elliott S. Kushner

______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Office of
Trade Adjustment Assistance


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,084

DIETRICH INDUSTRIES, INC.
INFORMATION SYSTEMS DIVISION
BLAIRSVILLE, PENNSYLVANIA

Negative Determinations 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 April 4, 2011 by a company official on behalf of workers
of Dietrich Industries, Inc., Information Systems Division,
Blairsville, Pennsylvania. The workers’ firm is engaged in
activities related to the production of steel. The subject worker
group supplies software development services for internal corporate
functions.
The petitioner alleges that worker separations are
attributable to a shift of software development services to a
foreign country. During the course of the investigation,
information was collected from the workers’ firm.
With respect to Section 222(a)(2)(A)(iii), the investigation
revealed that the worker separations are not attributable to
increased imports of articles like or directly competitive with the
steel produced by the workers’ firm.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the worker separations are not
attributable to a shift in production of steel by the workers’ firm
to a foreign country.

With respect to Section 222(b) of the Act, the investigation
established that the worker separations are not attributable to a
loss of business with a firm that employed a TAA-certified worker
group. Rather, the investigation confirmed that the worker
separations are attributable to a shift of software development
services to a foreign country. In addition, the investigation
established that the software is used for internal corporate
functions and cannot be considered an article produced by the
firm within the meaning of Section 222(a) of the Act.
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 Dietrich
Industries, Inc., Information Systems Division, Blairsville,
Pennsylvania, are denied eligibility to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, as amended,
and are also denied eligibility to apply for alternative trade
adjustment assistance under Section 246 of the Trade Act of 1974,
amended.
Signed in Washington, D.C. this 20th day of July, 2011


/s/Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance








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