DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-82,261

GENZYME CORPORATION
RESEARCH AND DEVELOPMENT GROUP
INCLUDING ON-SITE LEASED WORKERS FROM PRO-UNLIMITED
WALTHAM, MASSACHUSETTS

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 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 December 17, 2012 by a state workforce office on
behalf of workers of Genzyme Corporation, Research and
Development Group, Waltham, Massachusetts (Genzyme
Corporation). The workers' firm is engaged in activities
related to the supply of research and development services for
drugs and biomaterials for the internal benefit of Genzyme
Corporation. The subject worker group includes on-site leased
workers from PRO-Unlimited.
The petitioner alleged that the subject firm had been
purchased by a foreign company based in France and that
research and development services are being outsourced
offshore.
During the course of the investigation, information was
collected from the workers' firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that the firm did not import services
like or directly competitive with the services supplied by
Genzyme Corporation. The U.S. Department of Labor did not
conduct customer surveys as the research and development
services for drugs and biomaterials provided by the subject
workers were for the internal benefit of Genzyme Corporation.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply
of research and development services for drugs and
biomaterials or like or directly competitive services to a
foreign country or acquire research and development services
for drugs and biomaterials or like or directly competitive
services from a foreign country. Instead, Sanofi, a French
multinational pharmaceutical company, acquired the subject
firm in April 2011 and consolidated its domestic research and
development work in a "Boston Hub". Workers from Sanofi's
Research and Development groups in Cambridge, Massachusetts
and Bridgewater, New Jersey relocated and merged with the
workers at the subject firm. Additionally, the focus of the
work performed by the Research and Development group shifted
away from the development to the discovery of therapeutic
agents that can be used as drugs, which resulted in the firm's
need for workers with broader skill sets and/or skill sets
that were better suited for discovery work. The domestic
consolidation of the firm's research and development functions
in combination with the renewed focus on discovery work
resulted in the worker separations at the subject firm.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Genzyme Corporation 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Genzyme Corporation 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).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either because
Criterion (1) has not been met since the workers' firm has not
been publically identified by name by the International Trade
Commission 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.
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 Genzyme
Corporation, Research and Development Group, including on-site
leased workers from PRO-Unlimited, Waltham, Massachusetts
engaged in activities related to the supply of research and
development services for drugs and biomaterials to apply for
adjustment assistance, in accordance with Section 223 of the
Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 7th day of February, 2013.


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