DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-82,442

DELUXE LABORATORIES, INC.
A DIVISION OF DELUXE ENTERTAINMENT SERVICES GROUP, INC.
HOLLYWOOD, CALIFORNIA


Notice of Revised Determination
on Reconsideration

On July 23, 2013, the Department of Labor (Department) issued
a Notice of Affirmative Determination Regarding Application for
Reconsideration applicable to workers and former workers of Deluxe
Laboratories, Inc., a division of Deluxe Entertainment Services
Group, Inc., Hollywood, California (hereafter referred to as
either “Deluxe Laboratories, Inc.” or “subject firm”). The
subject firm is engaged in activities related to the production of
release and trailer film prints. The worker group does not
include leased workers.
Workers of the subject firm were previously eligible to apply
for Trade Adjustment Assistance (TAA) under TA-W-74,636
(certification expired on October 14, 2012).
Based on a careful review of previously-submitted information
and additional information obtained during the reconsideration
investigation, the Department determines that the petitioning
worker group has met the eligibility criteria set forth in the
Trade Act of 1974, as amended.

Section 222(b)(1) has been met because a significant number
or proportion of the workers at Deluxe Laboratories, Inc. have
become totally or partially separated, or are threatened to become
totally or partially separated.
Section 222(b)(2) has been met because workers of Deluxe
Laboratories, Inc. is 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), and such production is
related to the actual finished article or service that was the
basis for such certification.
Section 222(b)(3)(B) has been met because the loss of
business by Deluxe Laboratories, Inc. with the aforementioned
firm contributed importantly to worker separations at the subject
firm.
Conclusion
After careful review of previously-submitted facts and the
additional facts obtained during the reconsideration investigation,
I determine that workers of Deluxe Laboratories, Inc., a division
of Deluxe Entertainment Services Group, Inc., Hollywood,
California, meet the worker group certification criteria under
Section 222(b) of the Act, 19 U.S.C. § 2272(b). In accordance with
Section 223 of the Act, 19 U.S.C. § 2273, I make the following
certification:
"All workers of Deluxe Laboratories, Inc., a division of
Deluxe Entertainment Services Group, Inc., Hollywood,
California, who became totally or partially separated from
employment on or after October 15, 2012, through two years
from the date of this certification, and all workers in the
group threatened with total or partial separation from
employment on date of certification 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 8th day of November, 2013

/s/ Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance
4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-82,442

DELUXE LABORATORIES, INC.
A DIVISION OF DELUXE ENTERTAINMENT SERVICES GROUP, INC.
HOLLYWOOD, CALIFORNIA

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 February 12, 2013 by a State Workforce Office on behalf
of workers of Deluxe Laboratories, Inc., a division of Deluxe
Entertainment Services Group, Inc., Hollywood, California. The
workers’ firm is engaged in activities related to the production of
release and trailer prints for motion picture film entertainment
studios.
The petitioner alleged that worker separations are
attributable to work being outsourced to foreign countries.
During the course of the investigation, information was collected
from the workers’ firm and major declining customers.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports of articles like or directly
competitive with release and trailer prints have not increased
from 2011 to 2012 or from 2012 to 2013 by the workers’ firm or
customers of the workers’ firm.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers’ firm did not shift the
production of articles like or directly competitive with release
and trailer prints to a foreign country or acquire like or
directly competitive articles from a foreign country during 2011,
2012, or 2013. Rather, the investigation confirmed that the
worker separations are attributable to decreased demand for
movies and trailers that are printed on 35mm film.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Deluxe Laboratories, Inc. is not 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).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied because the workers’
firm has not been publicly 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 Deluxe Laboratories, Inc., a
division of Deluxe Entertainment Services Group, Inc., Hollywood,
California engaged in activities related to the production of
release and trailer prints to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 2nd day of May, 2013.


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




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