[Federal Register Volume 69, Number 153 (Tuesday, August 10, 2004)]
[Notices]
[Page 48526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18237]



[[Page 48526]]

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DEPARTMENT OF LABOR

Employment and Training Administration

[TA-W-53,209]


Computer Sciences Corporation, Finanial Services Group, East 
Hartford, Connecticut; Notice of Negative Determination on 
Reconsideration on Remand

    The United States Court of International Trade (USCIT) granted the 
Secretary of Labor's motion for a voluntary remand for further 
investigation in Former Employees of Computer Sciences Corporation v. 
Elaine Chao, U.S. Secretary of Labor, No. 04-00149.
    The Department's initial negative determination for the workers of 
Computer Sciences Corporation, Financial Services Group, East Hartford, 
Connecticut (hereafter ``CSC'') was issued on October 24, 2003 and 
published in the Federal Register on November 28, 2003 (68 FR 66878). 
The Department's determination was based on the finding that workers 
did not produce an article within the meaning of Section 222 of the 
Trade Act of 1974. It was determined that the subject worker group were 
not engaged in the production of an article, but provided business and 
information consulting, specialized application software, and 
technology outsourcing support to customers in the financial services 
industry.
    By letter of November 24, 2003, the petitioner requested 
administrative reconsideration of the Department's negative 
determination. The Department issued a Notice of Affirmative 
Determination Regarding Application for Reconsideration on January 5, 
2004. The determination Notice was published in the Federal Register on 
January 23, 2004 (69 FR 3391).
    The Department's Notice of Negative Determination on 
Reconsideration was issued on February 3, 2004 and published in the 
Federal Register on February 24, 2004 (69 FR 8488). On reconsideration, 
the Department determined that the workers produced widely marketed 
software components on CD Rom and tapes but were not eligible to apply 
for Trade Adjustment Assistance (TAA) because the subject company did 
not import completed software on physical media that is like or 
directly competitive with that which was produced at the subject 
facility and did not shift abroad functions performed at the subject 
facility.
    In his letter to the Court, the petitioner infers that packaging 
functions (storing completed software on physical media and making a 
tape copy of the completed software on physical media) had shifted to 
India. The Department requested, and was granted, a voluntary remand. 
On June 2, 2004, the Court ordered that the Department further 
investigate the matter and determine whether the subject worker group 
is eligible for certification for worker adjustment assistance 
benefits.
    As part of the remand investigation, the Department reviewed 
previously submitted information and contacted the subject company 
officials to determine the process in which software code is fixed onto 
tangible media, identify which functions were shifted to India, and 
determine whether the subject worker group meets the statutory criteria 
for TAA certification.
    In response to the Department's inquiries regarding CSC's software 
delivery processes, the company official stated that the software is 
copied from a central computer system onto physical media. When the 
software is ordered by a customer, a copy is made at the subject 
facility and delivered to the customer. Delivery of the software could 
be a CSC employee physically bringing the physical media and 
instruction materials to the customer from the subject facility, a 
customer physically picking up the physical media and instruction 
materials from the subject facility, or sending an electronic message 
to the customer with the software and instruction materials attached.
    During the remand investigation, the Department found that no 
``packaging'' functions were shifted to India, as asserted by the 
petitioner. The investigation revealed that the storing of the 
completed software onto physical media, the copying of the completed 
software onto physical media, and the delivery of the software continue 
to take place at the subject facility.
    To determine the workers' TAA eligibility, the Department inquired 
into CSC's production, sales, and import levels during the relevant 
time period, determined whether there was a shift of production abroad, 
and investigated whether increased imports of completed software like 
or directly competitive with those produced at the subject facility 
contributed importantly to the workers' separations.
    In response to the Department's inquiries, CSC submitted sales and 
production figures for the software produced at the subject facility 
during the relevant period (2002 and 2003). An examination of the 
submission shows increased sales in three lines of software and 
declines in a fourth line of software. To clarify this matter, the 
Department sought an explanation from the subject company. The 
Department was repeatedly informed that during the period of sales 
decline, CSC was enhancing that particular line of software and decided 
not to market it while it was being enhanced; and that while the 
existing version was available for purchase, most customers decided to 
wait until the new version was released because any enhancements would 
have to be separately purchased later to make it perform as well as the 
newly released version.
    As previously discussed, the Department determined that there was 
no shift of production abroad by the subject company during the 
relevant period.
    According to the company official, CSC does not import any 
completed software which is like or directly competitive with those 
produced at the subject facility which experienced sales declines 
during the relevant time period.

Conclusion

    After reconsideration on remand, I affirm the original notice of 
negative determination of eligibility to apply for adjustment 
assistance for workers and former workers of Computer Sciences 
Corporation, Financial Services Group, East Hartford, Connecticut.

    Signed at Washington, DC this 29th day of July 2004.
Elliott S. Kushner,
Certifying Officer, Division of Trade Adjustment Assistance.
[FR Doc. 04-18237 Filed 8-9-04; 8:45 am]
BILLING CODE 4510-30-P