DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,059

INTERNATIONAL BUSINESS MACHINES (IBM)
WATSON LAB SERVICES DELIVERY
7Y DIVISION
A PART OF THE COGNITIVE SOLUTIONS AND RESEARCH ORGANIZATION
INCLUDING ON-SITE LEASED WORKERS FROM PERFICIENT
LITTLETON, MASSACHUSETTS

TA-W-93,059A

INTERNATIONAL BUSINESS MACHINES (IBM)
DG NA DIGITAL MARKETING GROUP
A PART OF THE GLOBAL DIGITAL MARKETING ORGANIZATION
CAMBRIDGE, MASSACHUSETTS

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.
The group eligibility requirements for workers of a firm
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), are
satisfied if the following criteria are 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 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; AND
(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), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on August 4, 2017 on behalf of workers of International
Business Machines (IBM), Watson Lab Services Delivery, 7Y
Division, a part of the Cognitive Solutions and Research
Organization, Littleton, Massachusetts (TA-W-93,059) (“IBM-
Watson Lab Services Delivery”) and International Business
Machines (IBM), DG NA Digital Marketing Group, a part of the
Global Digital Marketing Organization, Cambridge,
Massachusetts (TA-W-93,059A) (“IBM-Digital Marketing”). The
workers’ firm is engaged in activities related to the supply of
support services for IBM’s software products. The workers the
subject of the investigation supplies project management
services for the Watson platform for IBM (TA-W-93,059) and
marketing services for IBM technology to startups and developers
(TA-W-93,059A). Workers are separately identifiable by service
supplied. These two groups are representative of the
petitioning workers. The worker group at IBM-Watson Lab Services
Delivery (TA-W-93,059) includes on-site leased workers from
Perficient.
During the course of the investigation, information was
collected from the workers’ firm and the petitioners.
TA-W-93,059
The investigation revealed that workers of IBM-Watson Lab
Services Delivery, meet the criteria for certification.
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 IBM-Watson Lab Services Delivery.
TA-W-93,059A
The investigation revealed that workers of IBM-Digital
Marketing, do not meet the criteria for certification.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that IBM-Digital Marketing did not
increased imports of like or directly competitive digital
marketing services. Imports were not reported by the firm in
2015, 2016, or during the period of January through July 2017.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
marketing services for IBM technology to startups and developers
or a like or directly competitive service to a foreign country
or acquire marketing services for IBM technology to startups and
developers or a like or directly competitive service from a
foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that IBM-Digital Marketing 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 of the facts obtained in the
investigation, I determine that, with regards to the worker
group covered by TA-W-93,059A, 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 International
Business Machines (IBM), DG NA Digital Marketing Group, a part
of the Global Digital Marketing Organization, Cambridge,
Massachusetts, to apply for adjustment assistance, in accordance
with Section 223 of the Act, 19 U.S.C. § 2273.
Additionally, after careful review of the facts obtained in
the investigation, I determine that that workers of
International Business Machines (IBM), Watson Lab Services
Delivery, 7Y Division, a part of the Cognitive Solutions and
Research Organization including on-site leased workers from
Perficient, Littleton, Massachusetts, who are engaged in
activities related to the supply of project management services
related to the Watson platform, 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.
In accordance with Section 223 of the Act, 19 U.S.C. § 2273, I
make the following certification:
“All workers of International Business Machines (IBM),
Watson Lab Services Delivery, 7Y Division, a part of the
Cognitive Solutions and Research Organization, including
on-site leased workers from Perficient, Littleton,
Massachusetts (TA-W-93,059), who became totally or
partially separated from employment on or after August 3,
2016 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 21st day of September 2017.

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