DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-39,437
AGERE SYSTEMS
INTEGRATED CIRCUITS
READING, PENNSYLVANIA

TA-W-39,437A
AGERE SYSTEMS
OPTOELECTRONICS DIVISION
READING, PENNSYLVANIA

TA-W-39,449
AGERE SYSTEMS
INTEGRATED CIRCUITS DIVISION
ALLENTOWN, PENNSYLVANIA

TA-W-39,449A
AGERE SYSTEMS
OPTOELECTRONICS DIVISION
BREINIGSVILLE, PENNSYLVANIA

Notice of Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974 (19
U.S.C. 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 eligibility to apply for worker adjustment assistance.
In order to make an affirmative determination and issue a
certification of eligibility to apply for adjustment assistance
each of the group eligibility requirements of Section 222 of the
Act must be met:
(1) that a significant number or proportion of the workers
in the workers' firm, or an appropriate subdivision
thereof, have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) that sales or production, or both, of the firm or
subdivision have decreased absolutely; and



(3) that increases of imports of articles like or directly
competitive with articles produced by the firm or
appropriate subdivision have contributed importantly to
the separations, or threat thereof, and to the absolute
decline in sales or production.

The investigation was initiated on June 18, 2001 in response
to a petitions filed by the International Brotherhood of
Electrical Worker, Local Unions 1898, 1522 and 1560 on behalf of
workers at Agere Systems, Integrated Circuit Division, Reading,
Pennsylvania (TA-W-39,437); Agere Systems, Optoelectronics
Division, Reading, Pennsylvania (TA-W-39,437A); Agere Systems,
Integrated Circuits Division, Allentown, Pennsylvania (TA-W-
39,449) and Agere Systems, Optoelectronics Division,
Breinigsville, Pennsylvania (TA-W-39,449A). The workers produced
the following:
TA-W-39,437---Integrated Circuits
TA-W-39,437A--Optoelectronics
TA-W-39,449---Integrated Circuits
TA-W-39,449A--Optoelectronics
Workers at the subject plant locations were separately
identifiable by product line.
Integrated Circuit Division, (TA-W-39,437 and TA-W-39,449)
It has been determined with respect to workers at Agere
Systems, Integrated Circuit Division, Reading, Pennsylvania (TA-
W-39,437) and Agere Systems, Integrated Circuits Division,
Allentown, Pennsylvania (TA-W-39,449) that all of the criteria
have been met.
The investigation revealed that sales, production and
employment declined during the relevant period.




The investigation further revealed that major customer(s)
increased their reliance on imported integrated circuits during
the relevant period.
Optoelectronics Division (TA-W-39,437A & TA-W-39,449A)
It has been determined with respect to workers at Agere
Systems, Optoelectronics Divisions, Reading, Pennsylvania (TA-W-
39,437A) and Agere Systems, Optoelectronics Division,
Breinigsville, Pennsylvania (TA-W-39,449A) that criterion (3) has
not been met.
Company imports of optoelectronics products similar to what
the subject plant produced are negligible.
The U.S. Department of Labor conducted a survey of the
subject plants major declining customers regarding their
purchases of optoelectronics during the relevant period. The
survey revealed that imports of optoelectronics are negligible
during the relevant period.
Conclusion
After careful review of the facts obtained in the investi-
gation, I conclude that increases of imports of articles like or
directly competitive with integrated circuits produced at Agere
Systems, Integrated Circuit Division, Reading, Pennsylvania (TA-
W-39,437) and Agere Systems, Integrated Circuits Division,
Allentown, Pennsylvania (TA-W-39,449) contributed importantly to
the decline in sales or production and to the total or partial
separation of workers of that firm. In accordance with the
provisions of the Act, I make the following certification:





"All workers of Agere Systems, Integrated Circuit Division,
Reading, Pennsylvania (TA-W-39,437); and Agere Systems,
Integrated Circuits Division, Allentown, Pennsylvania (TA-W-
39,449) engaged in employment related to the production of
integrated circuits who became totally or partially
separated from employment on or after June 1, 2000 and June
5, 2000, respectively, are eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974."

"I further determine that all workers at Agere Systems,
Optoelectronics Divisions, Reading, Pennsylvania (TA-W-
39,437A) and Agere Systems, Optoelectronics Division,
Breinigsville, Pennsylvania (TA-W-39,449A) are denied
eligibility to apply for adjustment assistance under Section
223 of the Trade Act of 1974."

Signed in Washington, D. C. this 29th day of August, 2001


/s/ Linda G. Poole
______________________________
LINDA G. POOLE
Certifying officer, Division of
Trade Adjustment Assistance





DEPARTMENT OF LABOR

Employment and Training Administration


TA-W-39,449A AND NAFTA-04955A
AGERE SYSTEMS
OPTOELECTRONICS DIVISION
BREINIGSVILLE, PENNSYLVANIA

TA-W-39,437A AND NAFTA-04954
AGERE SYSTEMS
OPTOELECTRONICS DIVISION
READING, PENNSYLVANIA

Notice of Negative Determination
Regarding Application for Reconsideration

By application of October 5, 2001 and October 8, 2001, the International
Brotherhood of Electrical Workers, Local 1560 and the International Brotherhood
of Electrical Workers, Local 1898, respectively requested administrative
reconsideration of the Department's negative determination regarding eligibility
for workers and former workers of the subject firm to apply for Trade Adjustment
Assistance (TAA) under petition TA-W-39,449A and North American Free Trade
Agreement-Transitional Adjustment Assistance (NAFTA-TAA) under petition NAFTA-
4955A and Trade Adjustment Assistance (TAA) under petition TA-W-39,437A and
North American Free Trade Agreement-Transitional Adjustment Assistance (NAFTA-
TAA) under petition NAFTA-4954, respectively. The denial notices applicable to
workers of Agere Systems, Optoelectronics Division, Breinigsville, Pennsylvania,
were signed on August 29, 2001 (TA-W-4937A and TA-W-39,449A), and August 23,
2001 (NAFTA-4955A and NAFTA-4954) and published in the Federal Register on
September 11, 2001 (66 FR 47241) and (66 FR 47243), respectively.
Pursuant to 29 CFR 90.18(c) reconsideration may be granted under the following
circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or

(3) if in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.

The TAA petitions, filed on behalf of workers at Agere Systems, Optoelectronics
Division, Breinigsville, Pennsylvania, and Agere Systems, Optoelectronics
Division, Reading, Pennsylvania producing optoelectronics, were denied because
the "contributed importantly" group eligibility requirement of Section 222(3) of
the Trade Act of 1974, as amended, was not met. The "contributed importantly"
test is generally demonstrated through a survey of the workers' firm's
customers. The survey revealed no increased customer imports of optoelectronics
during the relevant period. The investigation further revealed that imports of
optoelectronics by the company were negligible.
The NAFTA-TAA petitions for the same worker groups were denied because criteria
(3) and (4) of the group eligibility requirements in paragraph (a)(1) of Section
250 of the Trade Act, as amended, were not met. A survey was conducted and
revealed that customers did not increase their imports of optoelectronics from
Mexico or Canada during the relevant period. The subject firm did not import
optoelectronics from Mexico or Canada, nor was production of optoelectronics
shifted from the workers' firm to Mexico or Canada.

The petitioners allege that plant production is being shifted to Asia and
Mexico and that the products will be imported back to the United States.
The petitioners supplied information concerning the company's
manufacturing strategy concerning the transfer of plant production to Asia, in
conjunction with various other factors that are scheduled to occur. The planned
transfer and potential imports are beyond the relevant period of the initial
investigation and thus could not be considered during the investigation.
The petitioners further allege that certain products produced by the
subject plant were being outsourced to Canada and/or Mexico.
Based on data supplied by the company, only negligible amounts of products
produced by the subject plant were being outsourced to foreign sources.
The petitioners also indicated that some modulators, similar to those
produced by the subject plant, are scheduled to be made in Singapore.
The shift in production to Singapore does not meet the "contributed
importantly" test unless the product was imported back to the United States
during the investigation period.
The majority of the information recently provided by the petitioners
concerns a time period following the initial decision. The petitioner with
their request for reconsideration, attached new TAA and NAFTA-TAA petitions for
the Breinigsville, Pennsylvania plant. Those petitions will be instituted
shortly. The Department based on the information provided during reconsideration
is also initiating new TAA and NAFTA-TAA investigations for the Reading,
Pennsylvania location.
Conclusion
After review of the application and investigative findings, I conclude that
there has been no error or misinterpretation of the law or of the facts which
would justify reconsideration of
the Department of Labor's prior decisions. Accordingly, the application is
denied.

Signed at Washington, D.C., this 15th day of January, 2002.
/s/ Edward A. Tomchick

______________________________
EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance