DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,908

PEMCO MUTUAL INSURANCE COMPANY
DATA CENTER AND TECHNICAL SERVICE GROUP
SEATTLE, WASHINGTON

Notice of Negative 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 March 30, 2015, resulted
in a negative determination, issued on April 30, 2015, that was
based on the workers’ firm not producing an article. The
determination was applicable to workers and former workers of PEMCO
Mutual Insurance Company, Data Center and Technical Service
Group, Seattle, Washington.
The workers’ firm is engaged in activities related to the
supply of property and casualty insurance services providing a
variety of personal insurance lines to individual customers in
the Washington and Oregon area. The workers the subject of the
investigation perform information technology support services for
the organization.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the
requirements for certification have not been met.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports did not increase of
information technology support services. The firm did not import
information technology support services like or directly
competitive to the services provided by the worker group.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
information technology support services or a like or directly
competitive service to a foreign country or acquire information
technology support services or like or directly competitive
service from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that PEMCO Mutual Insurance Company is not
a Supplier or acts as a 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 either because Criterion
(1) has not been met since 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, 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 PEMCO Mutual
Insurance Company, Data Center and Technical Service Group,
Seattle Washington, engaged in employment related to the supply
of information technology support services to apply for
adjustment assistance, in accordance with Section 223 of the Act,
19 U.S.C. § 2273.
Signed in Washington, D.C. this 20th day of February, 2016


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







DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,908

PEMCO MUTUAL INSURANCE COMPANY
DATA CENTER AND TECHNICAL SERVICE GROUP
SEATTLE, WASHINGTON

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 March 30, 2015 on behalf of workers of PEMCO Mutual
Insurance Company, Data Center and Technical Service Group,
Seattle, Washington ("worker group"). The workers' firm is engaged
in activities related to the supply of property and casualty
insurance services providing a variety of personal insurance lines
to individual customers in the Washington and Oregon area. The
worker group that is the subject of the investigation performs
information technology support services for the organization.
The petitioners alleged that, "Pemco outsourced to a IT
contractor firm called Cognizant. We trained our replacement
workers who mostly worked in India" which led to worker
separations or the threat thereof.
During the course of the investigation, information was
collected from the workers' firm and petitioners.
The investigation revealed that PEMCO, 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
property and casualty insurance 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 PEMCO Mutual
Insurance Company, Data Center and Technical Service Group,
Seattle, Washington engaged in activities related to the supply
of property and casualty insurance 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 30th day of April, 2015

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