Former Employees of Electronic Data Systems Corp. v. United States Secretary of Labor

350 F. Supp. 2d 1282, 28 Ct. Int'l Trade 2074, 28 C.I.T. 2074, 27 I.T.R.D. (BNA) 1177, 2004 Ct. Intl. Trade LEXIS 155
CourtUnited States Court of International Trade
DecidedDecember 1, 2004
DocketSLIP OP. 04-151; Court 03-00373
StatusPublished
Cited by25 cases

This text of 350 F. Supp. 2d 1282 (Former Employees of Electronic Data Systems Corp. v. United States Secretary of Labor) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Former Employees of Electronic Data Systems Corp. v. United States Secretary of Labor, 350 F. Supp. 2d 1282, 28 Ct. Int'l Trade 2074, 28 C.I.T. 2074, 27 I.T.R.D. (BNA) 1177, 2004 Ct. Intl. Trade LEXIS 155 (cit 2004).

Opinion

OPINION

BARZILAY, Judge.

In this action, former employees of Electronic Data Systems Corporation, I Solutions Center, Fairborn, Ohio (“EDS”), Dan *1284 McGlinch, Ann M. Lett and Jodi McHar-gue (“Plaintiffs”), appeal from the determination of the United States Department of Labor (“Labor”) denying their eligibility for trade adjustment assistance (“TAA”) under section 222 of the Trade Act of 1974 (“the Act”), 19 U.S.C. § 2272 (West Supp. 2004). 1 See Notice of Negative Determs, for Worker Adjustment Assistance, 68 Fed.Reg. 6210, 6211 (Dep’t Labor Feb. 6, 2003); Notice of Negative Determ. Regarding Application for Reconsideration, 68 Fed.Reg. 20180 (Dep’t Labor Apr. 24, 2003) (hereinafter Reconsideration Determination). Labor denied certification on the grounds that Plaintiffs’s firm did not produce an “article” as required under section 222 of the Act. This court finds that Labor’s determination relies on incomplete factual findings and a flawed interpretation of the meaning of the term “article” within section 222 of the Act, and remands this action to Labor for further investigation.

BACKGROUND

Plaintiffs are former employees of EDS who were separated from their employment on March 15, 2002 (Dan McGlinch) and April 3, 2002 (Ann M. Lett and Jodi McHargue). On December 27, 2002, they filed a petition for trade adjustment assistance under section 221(a) of the Act. 2 See Petition Trade Adjustment Assistance for Workers at EDS, Dec. 27, 2002, P.R. Doc. *1285 No. 2 at 3. 3 In their petition, Plaintiffs included an attachment for the section “products produced by affected group” stating that “[t]he production of the following products, required to provide computer application creation and support, was moved from Fairborn, Ohio to Juarez, Mexico: computer programs, job control language, database support and documentation, third party software support and documentation, program and job documentation, [and] project-oriented documentation.” Petition Trade Adjustment Assistance for Workers at EDS, Dec. 27, 2002, P.R. Doc. No. 2 at 4. On January 15, 2003, Labor denied Plaintiffs’ certification on the ground that Plaintiffs’ firm did not produce an article as required under section 222 of the Act. Notice of Negative Determ. Regarding Eligibility to Apply for Worker Adjustment Assistance, EDS, TA-W-50, 486, P.R. Doc. No. 7 at 17-18 (notice published at 68 Fed.Reg. 6210, 6211). In the petition for reconsideration of this determination, Plaintiffs added an additional paragraph to the attachment for the section “products produced by affected group,” stating that “[w]ith the sale of these products to the customer, complete ownership of the products was transferred from EDS to the customer ... including] all usage and Copyrights of the products.” Request for Admin. Reconsideration of the Denial of TAA for Workers of EDS, Mar. 4, 2003, P.R. Doc. No. 10 at 29.

In response to the petition, Labor initiated an investigation. Labor’s initial investigatory work is memorialized in three forms: a verification guide, a confidential data request form and an investigative report. In the Verification Guide, Labor’s formal comments on Plaintiffs’ allegations regarding “layoffs/import impact/shift in production” included “[[ ]] company; moving services to [[ ]]”. 4 Verification Guide, TA-W-50, 486, C.R. Doc. No. 4 at 10. In the Confidential Data Request Response, a response to a questionnaire sent by Labor to the EDS Human Resources Manager, an EDS employee described the business activities of EDS as “information technology” including several more detailed explanations. Confidential Data Request Response, Jan. 6, 2003, C.R. Doc. No. 5 at 14. In response to the question whether the firm’s workers produce an article of any kind, the EDS employee replied: “No. They provide” certain other activities. Confidential Data Request Response, Jan. 6, 2003, C.R. Doc. No. 5 at 15. Labor’s investigator made no further inquiry concerning the nature of the work done by Plaintiffs’ firm. Using this information as conclusive evidence, Labor issued the negative determination. See Investigative Report, TA-W-50, 486, C.R. Doc. No. 6 at 16. Following Plaintiffs’ request for reconsideration of the negative determination, Labor took one additional step. It asked one of the Plaintiffs, [[ ]], to clarify. Memo from Susan Worden, Apr. 8, 2003, C.R. Doc. No. 11 at 30. This Plaintiff clarified that the computer program was custom-designed for the customer’s operations. Memo from Susan Worden, Apr. 8, 2003, C.R. Doc. No. 11 at 30; see Reconsideration Determination, 68 Fed.Reg. 20180, P.R. Doc. *1286 No. 12 at 32 (“A petitioner ... clarified that the subject firm created a custom-designed program for the customer’s financial department.”). Labor then determined that Plaintiffs’ firm did not produce an “article” within the meaning of the Act. Labor denied certification concluding that “[t]he functions performed at the subject firm relate to information technology services. These services are thus not tangible commodities, that is, marketable products, and are not listed in the Harmonized Tariff Schedule of the United States, which describes all articles imported to the United States.” Reconsideration Determination, 68 Fed.Reg. 20180. Relying on its interpretation of the Harmonized Tariff Schedule of the United States (HTSUS), 10 U.S.C. § 1202, Labor explained that “informational support that could historically be sent in letter form and that can currently be electronically transmitted are [sic] not listed in the HTS.” Id, Plaintiffs now challenge Labor’s determination regarding their eligibility for TAA before this court, specifically the finding that Plaintiffs’ firm did not produce “articles” within the meaning of the Act.

JURISDICTION AND STANDARD OF REVIEW

This Court has exclusive jurisdiction over civil actions arising from “any final determination by the Secretary of Labor ... with respect to the eligibility of workers for adjustment assistance.” 28 U.S.C. § 1581(d)(1) (2000). The Act provides for judicial review of Labor’s final determination denying certification of aggrieved workers’ eligibility for TAA. 19 U.S.C. § 2395(a) (West Supp.2004). The agency’s factual findings, “if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to such Secretary [of Labor] to take further evidence.” 19 U.S.C. § 2395(b). ■

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Former Employees Of Honeywell v. U.S. Sec. Of LAB.
359 F. Supp. 3d 1323 (Court of International Trade, 2019)
Former Emps. of Honeywell Int'l, Inc. v. United States Sec'y of Labor
2019 CIT 11 (Court of International Trade, 2019)
Former Employees of Mortgage Guaranty Insurance v. United States Secretary of Labor
572 F. Supp. 2d 1348 (Court of International Trade, 2008)
Former Employees of Fairchild Semi-Conductor Corp. v. United States Secretary of Labor
32 Ct. Int'l Trade 374 (Court of International Trade, 2008)
Nguyen v. United States Secretary of Agriculture
517 F. Supp. 2d 1329 (Court of International Trade, 2007)
Truong v. United States Sec'y of Agriculture
484 F. Supp. 2d 1324 (Court of International Trade, 2007)
Kyong Truong v. United States Sec'y of Agriculture
31 Ct. Int'l Trade 542 (Court of International Trade, 2007)
Former Employers of Merrill Corp. v. United States
483 F. Supp. 2d 1256 (Court of International Trade, 2007)
Dus & Derrick, Inc. v. United States Secretary of Agriculture
469 F. Supp. 2d 1326 (Court of International Trade, 2007)
Lady Kim T. Inc. v. United States Secretary of Agriculture
469 F. Supp. 2d 1262 (Court of International Trade, 2006)
Independent Steelworkers Union v. United States Secretary of Labor
30 Ct. Int'l Trade 1793 (Court of International Trade, 2006)
Former Employees of Tesco Technologies, LLC v. United States Secretary of Labor
30 Ct. Int'l Trade 1754 (Court of International Trade, 2006)
Anderson v. United States Sec'y of Agriculture
462 F. Supp. 2d 1333 (Court of International Trade, 2006)
Former Employees of BMC Software, Inc. v. United States Secretary of Labor
454 F. Supp. 2d 1306 (Court of International Trade, 2006)
Anderson v. United States, Secretary of Agriculture
429 F. Supp. 2d 1352 (Court of International Trade, 2006)
Former Employees of Gateway Country Stores, LLC v. Chao
30 Ct. Int'l Trade 264 (Court of International Trade, 2006)
Former Employees of Computer Sciences Corp. v. United States Secretary of Labor
414 F. Supp. 2d 1334 (Court of International Trade, 2006)
Former Employees of International Business MacHines Corp. v. U.S. Secretary of Labor
403 F. Supp. 2d 1311 (Court of International Trade, 2005)
Former Employees of Electronic Data Systems Corp. v. United States Secretary of Labor
408 F. Supp. 2d 1338 (Court of International Trade, 2005)
Van Trinh v. United States Secretary of Agriculture
395 F. Supp. 2d 1259 (Court of International Trade, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
350 F. Supp. 2d 1282, 28 Ct. Int'l Trade 2074, 28 C.I.T. 2074, 27 I.T.R.D. (BNA) 1177, 2004 Ct. Intl. Trade LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-electronic-data-systems-corp-v-united-states-cit-2004.