DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-40,589
AGERE SYSTEMS
OPTOELECTRONICS DIVISION
BREINIGSVILLE, PENNSYLVANIA

TA-W-40,589A
AGERE SYSTEMS
OPTOELECTRONICS DIVISION
READING, PENNSYLVANIA

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
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 January 22, 2002, in
response to a petition filed by the International Brotherhood of
Electrical Workers (IBEW), Local 915L, on behalf of workers at
Agere Systems, Optoelectronics, Breingsville, Pennsylvania and
Agere Systems, Optoelectronics, Reading, Pennsylvania. The workers
were engaged in activities related to the production of
optoelectronics. The workers are not separately identifiable by
product line.
The investigation revealed that criterion (3) has not been
met.
The investigation revealed that the preponderance in the
declines in sales, production and employment is related to
reduced demand for optoelectronics of the products produced by
the subject plant's customers and a shift in virtually all of
both plants production to an affiliated plant located in
Allentown, Pennsylvania.
The subject firm reported importing a negligible amount of
optoelectronics products (modulator assembly and low transmitter
module assembly) like or directly competitive with what the
subject firm produced from Mexico and Singapore during the
relevant period
The U.S. Department of Labor conducted a survey of the major
declining customers of the subject firm regarding their purchases
of optoelectronics during 2000 and 2001. The survey revealed
that the respondents did not increase their imports of
optoelectronics, while decreasing their purchases from the
subject plant during the relevant period. The survey further
revealed that imports of optoelectronics were negligible. In
fact, the products the customers sell to lacks demand.
The IBEW alleged that the company shifted various
optoelectronics ("W" type Lithium Niobate modulators to Singapore
and further stated that laser modules (commonly called "2.5 gig" or
"legacy codes") will be sent to Thailand.
The shift of "W" type Lithium Niobate modulators accounted
for 0.7% of plant production. Those products were imported back to
the United States through November 2001, but the demand for this
product since the shift in production has declined to nearly zero.
The company was also contacted concerning allegations by the
Union that the company shifted Breinigsville production of laser
modules ("2.5 gig" or "legacy codes") to Thailand. The company
indicted that the shift in that production will not commence until
June 2002, beyond the relevant period of this investigation.
The allegation made by the Union concerning shifts and
imports is consistent with what the company supplied.
Currently, the workers are under an existing investigation
for NAFTA-Transitional Adjustment Assistance. The identifying
number is NAFTA-5726 and NAFTA-5726A.


Conclusion
After careful review, I determine that all workers of Agere
Systems, Optoelectronics, Breingsville, Pennsylvania (TA-W-
40,589) and Agere Systems, Optoelectronics, Reading, Pennsylvania
(TA-W-40,589A) engaged in the production of optoelectronics are
denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974.

Signed in Washington, D. C. this 19th day of March, 2002.

/s/ Linda G. Poole
____________________________
LINDA POOLE
Certifying Officer, Division of
Trade Adjustment Assistance