DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,864

DELUXE 3D LLC
A SUBSIDIARY OF DELUXE CREATIVE SERVICES INC.
INCLUDING WORKERS WHOSE WAGES WERE REPORTED UNDER
DELUXE SHARED SERVICES INC.
BURBANK, CALIFORNIA

TA-W-93,864A

GLOBAL DIGITAL MEDIA XCHANGE LLC
A SUBSIDIARY OF DELUXE ENTERTAINMENT SERVICES GROUP INC.
INCLUDING WORKERS WHOSE WAGES WERE REPORTED UNDER
DELUXE SHARED SERVICES INC.
LOS ANGELES, CALIFORNIA

Determinations 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.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (b)
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and
(e). 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 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 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 June 4, 2018 by a state workforce office on behalf of
workers of Deluxe 3D LLC, a subsidiary of Deluxe Creative
Services Inc., including workers whose wages were reported
under Deluxe Shared Services Inc., Burbank, California, engaged
in activities related to the supply of 2D to 3D conversion
services for major motion pictures (TA-W-93,864) and the
workers of Global Digital Media Xchange LLC, a subsidiary of
Deluxe Entertainment Services Group, including workers whose
wages were reported under Deluxe Shared Services Inc., Los
Angeles, California, engaged in activities related to the supply
of broadcast satellite distribution services of syndicated
programs and broadcast origination and playback of one
particular television network (TA-W-93,864A).
During the course of the investigation, information was
collected from the workers' firm, the petitioner, and the major
declining customer(s) of the workers' firm.
TA-W-93,864
The investigation revealed that workers of Deluxe 3D LLC,
a subsidiary of Deluxe Creative Services Inc., including
workers whose wages were reported under Deluxe Shared Services
Inc., Burbank, California, meet the criteria for
certification.
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 Creative
Services Inc., including workers whose wages were reported
under Deluxe Shared Services Inc., Burbank, California.
TA-W-93,864A
The investigation revealed that workers of Global Digital
Media Xchange LLC, a subsidiary of Deluxe Entertainment
Services Group, including workers whose wages were reported
under Deluxe Shared Services Inc., Los Angeles, California, do
not meet the criteria for certification.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports of broadcast satellite
distribution services of syndicated programs and broadcast
origination and playback of one particular television network
did not increase. Imports of the aforementioned services
supplied by the firm, and of services like or directly
competitive, did not increase in 2016, 2017, or during the
period of January through May 2018. Imports were not
reported, at all, by the workers' firm. Furthermore,
according to a survey of purchases of the aforementioned
services by the major declining customer(s) of the workers'
firm, imports of said services, or services like or directly
competitive did not increase. According to the customer
survey imports were not reported in 2016, 2017, or during the
period of January through May 2018.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
broadcast satellite distribution services of syndicated
programs; and broadcast origination and playback of one
particular television network or like or directly competitive
services to a foreign country or acquire broadcast satellite
distribution services of syndicated programs; and broadcast
origination and playback of one particular television network or
like or directly competitive services from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Global Digital Media Xchange LLC,
a subsidiary of Deluxe Entertainment Services Group, including
workers whose wages were reported under Deluxe Shared Services
Inc., Los Angeles, California is not a supplier 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Global Digital Media Xchange LLC,
a subsidiary of Deluxe Entertainment Services Group, including
workers whose wages were reported under Deluxe Shared Services
Inc., Los Angeles, California does not act 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 workers of Deluxe 3D LLC, a
subsidiary of Deluxe Creative Services Inc., including workers
whose wages were reported under Deluxe Shared Services Inc.,
Burbank, California (TA-W-93,864), who are engaged in
activities related to the supply of 2D to 3D conversion services
for major motion pictures 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
Creative Services Inc., including workers whose wages
were reported under Deluxe Shared Services Inc.,
Burbank, California (TA-W-93,864), who became totally
or partially separated from employment on or after
June 1, 2017 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."
Furthermore, after careful review of the facts obtained in
the investigation, 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 Global
Digital Media Xchange LLC, a subsidiary of Deluxe
Entertainment Services Group, including workers whose wages
were reported under Deluxe Shared Services Inc., Los Angeles,
California (TA-W-93,864A), engaged in activities related to the
supply of broadcast satellite distribution services of
syndicated programs and broadcast origination and playback of
one particular television network to apply for adjustment
assistance, in accordance with Section 223 of the Act, 19 U.S.C.
§ 2273.
Signed in Washington, D.C. this 18th day of December 2018.

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