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TAW-85812  /  Deluxe 3D LLC (Burbank, CA)

Petitioner Type: State
Impact Date: 02/03/2014
Filed Date: 02/04/2015
Most Recent Update: 01/19/2016
Determination Date: 01/19/2016
Expiration Date: 01/19/2018

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,812

DELUXE 3D LLC
A SUBSIDIARY OF DELUXE ENTERTAINMENT SERVICES GROUP
INCLUDING WORKERS WHOSE WAGES WERE REPORTED THROUGH
DELUXE SHARED SERVICES
INCLUDING ON-SITE LEASED WORKERS FROM
ROBERT HALF TECHNOLOGY AND ELEVENTH HOUR
BURBANK, CALIFORNIA

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 February 4, 2015,
resulted in a negative determination, issued on March 31, 2015,
that was based on the Department of Labor’s finding that the firm
does not produce an article. The determination was applicable to
workers and former workers of Deluxe 3D LLC, a subsidiary of
Deluxe Entertainment Services Group, Burbank, California. The
workers’ firm is engaged in activities related to the supply of 3D
imaging services. The subject worker group was clarified to
represent workers of Deluxe 3D LLC, a subsidiary of Deluxe
Entertainment Services Group, including workers whose wages were
reported through Deluxe Shared Services, and on-site leased
workers from Robert Half Technology and Eleventh Hour, Burbank,
California.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the subject
firm shifted services to a foreign country.
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 shifted to a foreign country the supply of a service like or
directly competitive with the service supplied by the workers which
contributed importantly to worker group separations at Deluxe 3D
LLC, a subsidiary of Deluxe Entertainment Services Group,
including workers whose wages were reported through Deluxe Shared
Services, and on-site leased workers from Robert Half Technology
and Eleventh Hour, Burbank, California.
Conclusion
After careful review, I determine that workers of Deluxe 3D
LLC, a subsidiary of Deluxe Entertainment Services Group,
including workers whose wages were reported through Deluxe Shared
Services, and on-site leased workers from Robert Half Technology
and Eleventh Hour, Burbank, California, who are engaged in
activities related to supply of 3D imaging 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 Deluxe 3D LLC, a subsidiary of Deluxe
Entertainment Services Group, including workers whose wages
were reported through Deluxe Shared Services, including on-
site leased workers from Robert Half Technology and Eleventh
Hour, Burbank, California who became totally or partially
separated from employment on or after February 3, 2014,
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 January, 2016


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




DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,812

DELUXE 3D LLC
A SUBSIDIARY OF DELUXE ENTERTAINMENT SERVICES GROUP
BURBANK, CALIFORNIA

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 February 4, 2015 by the state workforce office on behalf
of workers of Deluxe 3D LLC, a subsidiary of Deluxe Entertainment
Services Group, Burbank, California. The workers' firm is engaged
in activities related to the supply of 3D imaging services; the
workers render 3D images from 2D images of a motion picture film.
The petitioner claimed work has shifted to Canada. During
the course of the investigation, information was collected from
the workers' firm.
The investigation revealed that Deluxe 3D LLC, a subsidiary
of Deluxe Entertainment Services Group, Burbank, California, 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 3D
imaging 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 Deluxe 3D LLC, a
subsidiary of Deluxe Entertainment Services Group, Burbank,
California engaged in activities related to the supply of 3D
imaging services 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 31st day of March, 2015.

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