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TAW-85656  /  Sprint/United Management Company (Overland Park, KS)

Petitioner Type: Workers
Impact Date: 11/18/2013
Filed Date: 11/19/2014
Most Recent Update: 11/20/2015
Determination Date: 11/20/2015
Expiration Date: 11/20/2017

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,656

SPRINT/UNITED MANAGEMENT COMPANY
ENTERPRISE TESTING SERVICES
INCLUDING ON-SITE LEASED WORKERS FROM IBM
OVERLAND PARK, KANSAS

Notice of Revised Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the
Trade Preferences Extension Act of 2015, Public Law No. 114-27,
section 405(a)(1)(A), 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 TAARA 2015, to the
facts of this petition (statutory reconsideration).
The initial investigation, initiated November 19, 2014,
resulted in a negative determination, issued on February 4, 2015,
that was based on the firm not producing an article. The
determination was applicable to workers and former workers of
Sprint/United Management Company, Enterprise Testing Services,
including on-site leased workers from IBM, Overland Park, Kansas
(herein referred to as “Sprint/United Management Company”). The
workers’ firm is engaged in activities related to the supply of
Enterprise Testing Services such as planning testing, writing
test cases, executing test cases, interacting with the
business/project team, opening defects on errors found and
retesting the defects when fixes are delivered. The subject
worker group includes on-site leased workers from IBM.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that an
acquisition of services from a foreign country contributed to the
worker separations at the subject frim.
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 Sprint/United
Management Company.
Conclusion
After careful review, I determine that workers of
Sprint/United Management Company, Enterprise Testing Services,
including on-site leased workers from IBM, Overland Park, Kansas,
who are engaged in activities related to supply of Enterprise
Testing Services such as planning testing, writing test cases,
executing test cases, interacting with the business/project team,
opening defects on errors found and retesting the defects when
fixes are delivered, 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 Sprint/United Management Company, Enterprise
Testing Services, including on-site leased workers from IBM,
Overland Park, Kansas who became totally or partially
separated from employment on or after November 18, 2013,
through two years from the date of certification, and all
workers in the group threatened with total or partial
separation from employment on the 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 20th day of November, 2015


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




DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-85,656

SPRINT/UNITED MANAGEMENT COMPANY
INCLUDING ON-SITE LEASED WORKERS FROM IBM
OVERLAND PARK, KANSAS

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 November 19, 2014 on behalf of workers of Sprint/United
Management Company, Overland Park, Kansas ("Sprint/United
Management Company" or "the subject firm"). The workers' firm is
engaged in activities related to the supply of Enterprise Testing
Services such as planning testing, writing test cases, executing
test cases, interacting with the business/project team, opening
defects on errors found and retesting the defects when fixes are
delivered. The worker group includes on-site leased workers from
IBM.
The petition states, "Officially, we were laid off due to lack
of work which in and of itself I believe may qualify us for TAA
benefits from what I have read in the qualification guidelines.
However, I have heard from Sprint employees that remained on the
team that the work is actually still there but has been moved to
offshore workers in another country."
During the course of the investigation, information was
collected from Sprint Corporation ("workers' firm") and the
petitioners.
The investigation revealed that Sprint/United Management
Company 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 supplied services related to
Enterprise Testing Services such as planning testing, writing
test cases, executing test cases, interacting with the
business/project team, opening defects on errors found and
retesting the defects when fixes are delivered. Although the
subject workers test applications, the applications are
incidental to the supply 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 Sprint/United
Management Company, including on-site leased workers from IBM,
Overland Park, Kansas, 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 4th day of February 2015.

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