[Federal Register: November 1, 2006 (Volume 71, Number 211)]
[Notices]
[Page 64300-64301]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01no06-118]
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DEPARTMENT OF LABOR
Employment and Training Administration
[TA-W-59,500]
Connecticut General Life Insurance Company (CGLIC), Cigna
Healthcare Service Operations, Philadelphia, PA; Notice of Negative
Determination Regarding Application for Reconsideration
By application dated August 17, 2006 a petitioner 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 Connecticut General Life
Insurance Company (CGLIC), Cigna Healthcare Service Operations,
Philadelphia, Pennsylvania was signed on July 24, 2006 and published in
the Federal Register on August 14, 2006 (71 FR 46519).
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 Connecticut General
Life Insurance Company (CGLIC), Cigna Healthcare Service Operations,
Philadelphia, Pennsylvania engaged in computer support for CIGNA's
Disability Management IT (support, basic Application development
support, coding and systems testing, and customer help desk support)
was denied because the STpetitioning workers did not produce an article
within the meaning of Section 222 of the Act.
The petitioner contends that the Department erred in its
interpretation of work performed at the subject facility as providing a
service and further conveys that workers of the subject firm created
various software for sale or lease to customers. The petitioner
included the name of a customer who purchased/leased Disability
Management software from the subject firm, thus concluding that workers
of the subject firm were supporting this customer.
[[Page 64301]]
A company official was contacted for clarification in regard to the
nature of the work performed at the subject facility. The official
stated that workers of the subject firm were employed by Connecticut
General Life Insurance Company (CGLIC) that supports CIGNA's Disability
Management Business at Intracorp, CIGNA disability management company.
The official clarified that Intracorp is not in the business of
manufacturing Disability Management software for sale to third parties.
Workers of the subject firm provided system support for Intracorp,
which sells case management services to workers' compensation insurers,
employers who self fund workers' compensation and disability benefits,
and third party administrator. All software developed by workers of the
subject firm is used to support this service business. In addition to
case management, Intracorp developed its own automated medical bill
review service and this software program is also used externally by the
subject firm for its business. The official further clarified that
there is only one instance when a customer temporarily leases software
developed by Intracorp to perform its own bill review services. This
customer did not purchase this software. When the software was leased
to this customer, some modifications were done to existing Audit Plus
software, however these enhancements are not a new ``product'' but
rather are enhancements to an existing system.
The sophistication of the work involved is not an issue in
ascertaining whether the petitioning workers are eligible for trade
adjustment assistance, but whether they produce an article within the
meaning of section 222 of the Trade Act of 1974.
Research, development and technical support of the existing
software is not considered production of an article within the meaning
of Section 222 of the Trade Act. Further, while the provision of
services may result in creation of software, as outlined by the
petitioner, it is incidental to the provision of services. The
Department has consistently determined that those items which are
created incidental to the provision of services are not considered
articles for purposes of the Trade Act.
The investigation on reconsideration supported the findings of the
primary investigation that the petitioning group of workers does not
produce an article.
Service workers can be certified only if worker separations are
caused by a reduced demand for their services from a parent or
controlling firm or subdivision whose workers produce an article
domestically who meet the eligibility requirements, or if the group of
workers are leased workers who perform their duties at a facility that
meet the eligibility requirements.
The petitioner's alleges that the work performed by the workers of
the subject firm has been shifted to India.
The company official stated that developments for the Audit Plus
bill review system enhancements or fixes are currently performed on-
site and have not been moved abroad. The official also stated that
there are currently no firm target dates to move this work offshore.
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, DC, this 25th day of October, 2006.
Elliott S. Kushner,
Certifying Officer, Division of Trade Adjustment Assistance.
[FR Doc. E6-18353 Filed 10-31-06; 8:45 am]
BILLING CODE 4510-30-P