[Federal Register Volume 71, Number 69 (Tuesday, April 11, 2006)]
[Notices]
[Pages 18357-18358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-5277]


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DEPARTMENT OF LABOR

Employment and Training Administration

[TA-W-56,688]


Lands'End, A Subsidiary of Sears Roebuck and Company, Business 
Outfitters CAD Operations, Dodgeville, Wisconsin; Notice of Revised 
Determination on Remand

    In an Order issued on December 7, 2005, the United States Court of 
International Trade (USCIT) granted the motion filed by the Department 
of Labor (Department) for voluntary remand in Former Employees of 
Lands' End Business Outfitters v. United States Secretary of Labor, 
Court No. 05-00517.
    The Department denied Trade Adjustment Assistance (TAA) and 
Alternative Trade Adjustment Assistance (ATAA) to workers of Lands' 
End, a Subsidiary of Sears Roebuck and Company, Business Outfitters CAD 
Operations, Dodgeville, Wisconsin, (Lands' End) because the workers' 
separations were due to the subject company's decision to move computer 
assisted design operations abroad. The subject worker group is engaged 
in computerizing embroidery and logo designs which are utilized by the 
production division of Lands' End, also located in Dodgeville, 
Wisconsin. The Notice of determination was issued on March 25, 2005, 
and published in the Federal Register on May 2, 2005 (70 FR 22710).
    On June 6, 2005, the Department issued an Affirmative Determination 
Regarding Application for Reconsideration for the workers and former 
workers of the subject firm. The Notice of determination was published 
in the Federal Register on June 20, 2005 (70 FR 35456). In the request 
for reconsideration, the petitioners alleged that workers produce 
digitized embroidery designs, that production shifted overseas, and 
that imports had increased following the shift of production abroad.
    A negative determination on reconsideration was issued on July 28, 
2005. The Notice of determination was published in the Federal Register 
on August 9, 2005 (70 FR 46190). During the reconsideration 
investigation, the Department was informed that the workers create 
digitized embroidery designs from customers' logos. The designs are 
owned by the customers. The digitized designs are readable by the 
embroidery machines at Dodgeville, Wisconsin, and are embroidered onto 
clothing and luggage produced by Lands' End. Alternatively, the 
customer may give the design to another apparel manufacturer for the 
production of the logo design on clothing and luggage. The Department 
found that the production of digitized embroidery designs shifted 
overseas, and that the designs are electronically returned to 
Dodgeville, Wisconsin. Because the Department's policy required that 
articles be tangible for purposes of the Trade Act, it was determined 
that the workers did not produce an article and were not covered by the 
Trade Act.
    Since the issuance of the voluntary remand order, the Department 
has revised its policy to acknowledge that, at least in the context of 
this case, there are tangible and intangible articles and to clarify 
that the production of intangible articles can be distinguished from 
the provision of services. Software and similar intangible goods that 
would have been considered articles for the purposes of the Trade Act 
if embodied in a physical medium will now be considered to be articles 
regardless of their method of transfer.
    The Department stresses that it will continue to implement the 
longstanding precedent that firms must produce an article to be 
certified under the Act. This determination is not altered by the fact 
the provision of a service may result in the incidental creation of an 
article. For example, accountants provide services for the purposes of 
the Act even though, in the course of providing those services, they 
may generate audit reports or similar financial documents that might be 
articles on the Harmonized Tariff Schedule of the United States. 
Because the new policy may have ramifications beyond this case of which 
the Department is not fully cognizant, the new policy will be further 
developed in rulemaking.
    Moreover, because it is the Department's practice to apply current 
policy instead of the policy which existed during the investigative 
period if doing so is favorable to the workers, the Department 
conducted the remand investigation under the new policy.
    After careful review of the facts, the Department has determined 
that: the petitioners are former employees of Land's End Business 
Outfitters CAD operations of Dodgeville, Wisconsin; that the workers' 
firm produced an intangible article (digitized embroidery designs) that 
would have been considered an article if embodied in a physical medium; 
that employment at the subject facility declined during the relevant 
period; that the workers' firm shifted digitized embroidery design 
production abroad; and that the workers' firm increased imports of 
articles like or directly competitive with the digitized embroidery 
designs produced at the subject facility.
    In accordance with Section 246 the Trade Act of 1974, as amended, 
the Department of Labor herein presents the results of its 
investigation regarding certification of eligibility to apply ATAA.
    In order for the Department to issue a certification of eligibility 
to apply for ATAA, the group eligibility requirements of Section 246 of 
the Trade Act must be met. The Department has determined in this case 
that the requirements of Section 246 have been met.
    Additional investigation has determined that the workers possess 
skills that are not easily transferable. A significant number or 
proportion of the worker group are age fifty years or over. Competitive 
conditions within the industry are adverse.

Conclusion

    After careful review of the facts generated through the remand 
investigation, I determine that increased imports of digitized 
embroidery designs like or directly competitive with those produced by 
the subject firm contributed importantly to the total or partial 
separation of a significant number of workers at the subject facility. 
In accordance with the

[[Page 18358]]

provisions of the Act, I make the following certification:

    ``All workers of Lands' End, a Subsidiary of Sears Roebuck and 
Company, Business Outfitters CAD Operations, Dodgeville, Wisconsin, 
who became totally or partially separated from employment on or 
after March 3, 2004, through two years from the issuance of this 
revised determination, are eligible to apply for Trade Adjustment 
Assistance under section 223 of the Trade Act of 1974, and are also 
eligible to apply for alternative trade adjustment assistance under 
Section 246 of the Trade Act of 1974.''

    Signed at Washington, DC this 24th day of March 2006.
Elliott S. Kushner,
Certifying Officer, Division of Trade Adjustment Assistance.
 [FR Doc. E6-5277 Filed 4-10-06; 8:45 am]
BILLING CODE 4510-30-P