DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,408

INTERNATIONAL BUSINESS MACHINES (IBM)
SALES/USE TAX AND PERSONAL PROPERTY TAX
F1 (CHQ FINANCE) DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM
MANPOWER AND ALLIANCE OF PROFESSIONALS AND CONSULTANT
SOUTHBURY, CONNECTICUT

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 September 1, 2011 by a one-stop operator or partner on
behalf of workers of International Business Machines (IBM),
Sales/Use Tax and Personal Property Tax. F1 (CHQ Finance)
Division, Southbury, Connecticut. The workers' firm is engaged in
activities related to the supply of indirect tax compliance, audit,
and systems services. The subject worker group includes on-site
leased workers from Manpower and Alliance of Professionals and
Consultant.
The one-stop alleges that a shift of services to a foreign
country occurred during relevant period and another division in the
same location received a certification. During the course of the
investigation, information was collected from the workers' firm.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that worker separations are not attributable
to increased imports of articles.
With respect to Section 222(a)(2)(A)(iii), the investigation
revealed that the worker separations are not attributable to a
shift in production of articles to by the workers' firm to a
foreign country. Rather, the investigation confirmed that the
worker separations are attributable to a shift of services by the
workers' firm to a foreign country.
The investigation revealed that IBM is not a Supplier or a
Downstream Producer to a firm that employed a TAA-certified worker
group.
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 International
Business Machines (IBM), Sales/Use Tax and Personal Property Tax.
F1 (CHQ Finance) Division, including on-site leased workers from
Manpower and Alliance of Professionals and Consultant, Southbury,
Connecticut 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 23rd day of September 2011


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