DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-40,235

ERICSSON
RESEARCH TRIANGLE PARK, NORTH CAROLINA

Notice of Negative Determination
Regarding Application for Reconsideration

By application received on February 22, 2002, the
petitioner(s) 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). The denial notice applicable to
workers of Ericsson, Research Triangle Park, North Carolina, was
signed on January 18, 2002, and published in the Federal Register
on February 5, 2002 (67 FR 5294).
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 petition, filed on behalf of workers at Ericsson,
Research Triangle Park (RTP), North Carolina, were engaged in
activities related to the research and development of software
(embedded software) to be installed in digital cell phones for a
firm which sold digital cell phones. The petition was denied
because the petitioning workers did not produce an article within
the meaning of Section 222(3) of the Act.
The petitioner alleges that Ericsson, Research Triangle
Park, North Carolina produced digital cell phone software.
Information supplied by the company indicates that the
workers at Ericsson, Research Triangle Park, North Carolina were
primarily engaged in research, development and sales of mobile
telephone equipment. This included the designing of mobile
phones and the development of software (activities related to the
research, and development of embedded software for digital cell
phones). Administrative and support-type personnel were also
located at the site performing finance, IT, legal, facilities
management and human resource functions. There was no
manufacturing performed at the subject facility.
The investigation further revealed that the major
contributing factors to the layoffs at the subject plant were
related to a decline in the demand for cell phones and a
worldwide joint venture agreement between the subject firm and
Sony during the relevant period.
The workers at the subject firm do not produce an article
within the meaning of Section 222(3) of the Trade Act 1974.
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 decision. Accordingly, the
application is denied.

Signed at Washington, D.C., this 9th day of May, 2002.
/s/ Edward A. Tomchick


EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance