DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-39,256

NORTEL NETWORKS
SIMI VALLEY, CALIFORNIA

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance
In accordance with Section 223 of the Trade Act of 1974 (19
USC 2273) as amended by the Omnibus Trade and Competitiveness Act
of 1988 (P. L. 100-418), the Department of Labor herein presents
the results of an investigation regarding certification of eligi-
bility to apply for worker adjustment assistance.
The investigation was initiated in response to a petition
received on May 14, 2001, and filed on behalf of workers at Nortel
Networks, Simi Valley, California. The workers were engaged in
activities related to research, development and engineering.
The investigation revealed that the petitioners of Nortel
Networks, Simi Valley, California did not produce an article within
the meaning of Section 222(3) of the Act. The Department of Labor
has consistently determined that the performance of services does
not constitute production of an article, as required by Section 222
of the Trade Act of 1974, and this determination has been upheld in
the U.S. Court of Appeals.
Workers of the subject facility may be certified only if their
separation was caused importantly by a reduced demand for their
services from a parent firm, a firm otherwise related to the
subject firm by ownership, or a firm related by control.
Additionally, the reduction in demand for services must originate
at a production facility whose workers independently meet the
statutory criteria for certification and the reduction must
directly relate to the product impacted by imports. These
conditions have not been met for workers at the subject firm.
Conclusion
After careful review, I determine that all workers of Nortel
Networks, Simi Valley, California, are denied eligibility to apply
for adjustment assistance under Section 223 of the Trade Act of
1974.

Signed in Washington, D. C. this 4th day of June, 2001
/s/ Linda G. Poole
______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance