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TAW-85721  /  Workers of IBM Corporation (San Antonio, TX)

Petitioner Type: State
Impact Date: 12/12/2013
Filed Date: 12/15/2014
Most Recent Update: 03/19/2016
Determination Date: 03/19/2016
Expiration Date: 03/19/2018

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,721

WORKERS OF IBM CORPORATION
REPORTING TO IBM CORPORATION, BOULDER, COLORADO
SERVICE DESK ON-SITE AT CITIBANK
INCLUDING ON-SITE LEASED WORKERS FROM
RANDSTAD TECHNOLOGIES AND CAREER CONNECTIONS
SAN ANTONIO, TEXAS

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 on December 15, 2014,
resulted in a negative determination, issued on March 2, 2015, that
was based on the Department’s finding that the subject firm did not
produce an article. The determination was applicable to workers and
former workers of IBM Corporation, reporting to IBM, Boulder,
Colorado, Service Desk on-site at Citibank, including leased
workers from Randstad Technologies and Career Connections, San
Antonio, Texas (hereafter referred to as “IBM/Service Desk”). The
subject worker group supplies information technology (IT) problem
resolution and related services, and includes on-site leased
workers from Randstad Technologies and Career Connections.
Based on information reviewed during the reconsideration
investigation, the Department determines that the requirements
for certification have been met
Section 222(a)(1) has been met because a significant number
or proportion of the workers in IBM/Service Desk 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 shifted to a foreign country the supply of services like or
directly competitive with those supplied by the subject workers,
which contributed importantly to worker group separations at
IBM/Service Desk.

Conclusion
After careful review, I determine that workers of IBM
Corporation, reporting to IBM, Boulder, Colorado, Service Desk on-
site at Citibank, San Antonio, Texas, who are engaged in activities
related to the supply of service desk services (information
technology problem resolution and related services), 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 IBM Corporation, reporting to IBM, Boulder,
Colorado, Service Desk, on-site at Citibank, including leased
workers from Randstad Technologies and Career Connections, San
Antonio, Texas, who became totally or partially separated from
employment on or after December 12, 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 19th day of March, 2016


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




DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,721

WORKERS OF IBM CORPORATION
REPORTING TO IBM CORPORATION, BOULDER, COLORADO
SERVICE DESK
ON-SITE AT CITIBANK
INCLUDING ON-SITE LEASED WORKERS FROM RANDSTAD TECHNOLOGIES
AND CAREER CONNECTIONS
SAN ANTONIO, TEXAS


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 December 15, 2014 by the Michigan State Workforce Office
on behalf of workers of workers of IBM Corporation, reporting to
IBM, Boulder, Colorado, Service Desk, on-site at Citibank, San
Antonio, Texas (hereafter referred to as IBM/Service Desk). Workers
of IBM/Service Desk are engaged in activities related to the supply
of service desk services. The worker group includes on-site leased
workers from Randstad Technologies and Career Connections and a
worker who works remotely from the State of Michigan.
During the course of the investigation, the Department
collected information from the petitioner, IBM Corporation, and a
former IBM Corporation worker.
The investigation revealed that IBM/Service Desk 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 obtained information
that revealed that IBM/Service Desk did not produce an article but
supplied services related to service desk services.
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 IBM Corporation,
reporting to IBM, Boulder, Colorado, Service Desk, on-site at
Citibank, including leased workers from Randstad Technologies and
Career Connections, San Antonio, Texas, 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 2nd day of March 2015.

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