DEPARTMENT OF LABOR
Employment and Training Administration

TA-W-41,549

PHILIPS CONSUMER ELECTRONICS
KNOXVILLE, TENNESSEE

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.
The investigation was initiated in response to a petition
received on May 20, 2002, and filed on behalf of workers and former
workers at Philips Consumer Electronics, Knoxville, Tennessee. The
workers provided engineering and accounting support for the
production of projection television sets.
The investigation revealed that the workers of Philips
Consumer Electronics, Knoxville, Tennessee, do not produce an
article within the meaning of Section 222(3) of the Trade Act of
1974. 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 subject firm 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.
A petition for NAFTA-Transitional Adjustment Assistance has
been filed on behalf of workers at the subject firm (NAFTA 6164).
A determination on that petition will be made concurrently with
this determination.
Conclusion
After careful review, I determine that all workers of Philips
Consumer Electronics, Knoxville, Tennessee, engaged in providing
support services for the production of projection TV's at Five
Rivers Electronic Innovations, Greeneville, Tennessee, are denied
eligibility to apply for adjustment assistance under Section 223 of
the Trade Act of 1974.
Signed in Washington, D. C. this 13th day of September 2002.

Elliott S. Kushner

______________________________
ELLIOTT S. KUSHNER
Certifying Officer
Division of Trade Adjustment
Assistance