DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,228

CONTINENTAL CASUALTY COMPANY
INFORMATION TECHNOLOGY APPLICATION
DEVELOPMENT FOR INVESTMENT AREA DIVISION
A SUBSIDIARY OF THE CONTINENTAL CORPORATION
CHICAGO, ILLINOIS

Notice of Revised Determination
on Reconsideration

The initial investigation, initiated June 13, 2011, resulted
in a negative determination, issued on August 12, 2011, that was
based on the finding that the subject firm does not produce an
article. The determination was applicable to workers and former
workers of Continental Casualty Company, Information Technology
Application Development for Investment Area Division, a subsidiary
of The Continental Corporation, Chicago, Illinois. The notice of
negative determination was published in the Federal Register on
September 2, 2011 (76 FR 54797). The workers’ firm is engaged in
activities related to the supply of insurance services.
Specifically the workers provide application development services
in support of the subject firm’s investment area.
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 the
preponderance of the employment decline at the subject firm is
related to the acquisition of services from a foreign country.
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 acquired from a foreign country services like or directly
competitive with services supplied by the workers which contributed
importantly to worker group separations at Continental Casualty
Company.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I determine that workers of Continental Casualty
Company, Information Technology Application Development for
Investment Area Division, a subsidiary of The Continental
Corporation, Chicago, Illinois, who were engaged in employment
related to the supply of application development services in
support of the subject firm’s investment area, 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 Continental Casualty Company, Information
Technology Application Development for Investment Area
Division, a subsidiary of The Continental Corporation,
Chicago, Illinois who became totally or partially separated
from employment on or after June 10, 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 22nd day of December, 2011

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


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-80,228

CONTINENTAL CASUALTY COMPANY
INFORMATION TECHNOLOGY APPLICATION
DEVELOPMENT FOR INVESTMENT AREA DIVISION
A SUBSIDIARY OF THE CONTINENTAL CORPORATION
CHICAGO, ILLINOIS

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 June 13, 2011 by a one-stop operator/partner on behalf of
workers of Continental Casualty Company, Information Technology
Development for Investment Area Division, a subsidiary of The
Continental Corporation, Chicago, Illinois (Continental Chicago).
The workers’ firm is engaged in activities related to the supply of
insurance services. The petitioning workers specifically provide
application development services in support of the investment area.
The petitioner alleged that the Investment Systems
Development Department was outsourced to a foreign country.
During the course of the investigation, information was
collected from the workers’ firm and petitioner.
The investigation revealed that Continental Chicago, 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 of Labor obtained
information that revealed that the workers’ firm did not produce an
article; rather, the workers’ firm supplies insurance services. The
application development in support of the investment area work is
considered a by-product of the service offered and thus considered
incidental to the provision of the service.
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 Continental
Casualty Company, Information Technology Development for
Investment Area Division, a subsidiary of The Continental
Corporation, Chicago, Illinois, engaged in activities related to
the supply of insurance 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 12th day of August, 2011


/s/Hope D. Kinglock
_____________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance








- 8 -