DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-81,668

VERTIS INC.
INSERT ADVERTISING DIVISION
INCLUDING ON-SITE LEASED WORKERS FROM
ETHAN ALLEN STAFFING AND MANPOWER INCORPORATED
SAUGERTIES, NEW YORK


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), (b)
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and
(e). 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 criteria must be met:
(1) 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.

(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) (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.
(iii) the increase in imports 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.

(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
(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; and
(ii) the shift described in clause (i)(I) or the
acquisition of articles or services described in
clause (i)(II) contributed importantly to such
workers' separation or threat of separation.

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
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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines
the terms "Supplier" and "Downstream Producer."
Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission (ITC) as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(e) of the Act, 19 U.S.C. § 2272(e).
The group eligibility requirements for workers of a firm
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), 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 May 31, 2012 by a One Stop Operator on behalf of
workers and former workers of Vertis Inc., Inserts Advertising
Division, Saugerties, New York (Vertis-Inserts Advertising
Division). The workers' firm was engaged in activities
related to the production of in-store advertisements for local
retailers (advertisement circulars inserted into newspapers).
Vertis-Inserts Advertising Division ceased to operate
permanently on January 7, 2012.
The petition states "Other Vertis locations that have
closed were certified TAA based on foreign competition."
During the course of the investigation, information was
collected from the workers' firm and its major declining
customers. During the investigation, the Department reviewed
the recent certifications applicable to other Vertis locations
(TA-W-71,186; TA-W-73,523; and TA-W-80,391).
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that that Criterion (2)(A)(ii) has not
been met because imports of articles like or directly
competitive with the advertising inserts produced by Vertis-
Inserts Advertising Division have not increased during the
relevant period.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Vertis-Inserts Advertising
Division did not shift the production of advertising inserts,
or like or directly competitive articles, to a foreign country
or acquire the production of advertising inserts, or like or
directly competitive articles, from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Vertis Inc. is not a Supplier 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).
Further, the investigation revealed that Vertis Inc. does
not act as a Downstream Producer to a firm (or subdivision,
whichever is applicable) 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).
The group eligibility requirements under Section 222(e)
of the Act, have not been satisfied since the workers' firm
has not been publically identified by name by the ITC as a
member of a domestic industry in an investigation resulting in
an affirmative finding of serious injury, market disruption,
or material injury, or threat thereof.
The Department's review of the afore-mentioned
certifications (TA-W-71,186; TA-W-73,523; and TA-W-80,391)
reveals that the worker group at each location differs from
the worker group at Vertis-Inserts Advertising Division. The
worker group covered by TA-W-80,391 was engaged in the
production of pre-media files and certified based on increased
customer imports of like or directly competitive articles.
The worker groups covered by TA-W-73,523 and TA-W-71,186 were
engaged in the supply of prepress services and certified based
on a shift in the supply of services to a foreign country.
Due to the significant disparities, the facts of the afore-
mentioned cases cannot be a basis for certification of the
worker group covered by TA-W-81,668.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that the requirements of Section
222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Vertis
Inc., Inserts Advertising Division, Saugerties, New York, to
apply for adjustment assistance, in accordance with Section
223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 12th day of February, 2013


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