Petitioner Type: Workers
Impact Date: 09/29/2003
Filed Date: 10/06/2004
Most Recent Update: 11/08/2004
Determination Date: 11/08/2004
Expiration Date: 02/04/2007
Employment and Training Administration
TA-W-55,742
ROCK-TENN COMPANY
OTSEGO, MICHIGAN
Notice of Revised Determination
on Reconsideration
On January 25, 2005, the Department issued an Affirmative
Determination Regarding Application on Reconsideration applicable
to workers and former workers of the subject firm. The notice
will soon be published in the Federal Register.
The previous investigation initiated on October 6, 2004,
resulted in a negative determination issued on November 8, 2004,
based on the finding that imports of paperboard rolls did not
contribute importantly to worker separations at the subject firm
and no shift of production to a foreign source occurred. The
denial notice was published in the Federal Register on December
9, 2004 (69 FR 71428).
In the request for reconsideration, the petitioner provided
additional information regarding subject firm’s customers. Upon
further review, it was revealed that the Department did not
request a list of declining domestic customers during the initial
investigation due to the understanding that the subject firm
produced paperboard rolls to satisfy the in-house demand.
Having conducted a detailed investigation on
reconsideration, it was established that the subject firm
supplied a number of affiliated facilities with low-density
paperboard. The Department surveyed these facilities as
customers of the subject firm. It was revealed that the major
declining customer absolutely increased its imports of low-
density paperboard in the relevant period. The imports accounted
for a meaningful portion of the subject plant’s lost sales and
production.
In accordance with Section 246 the Trade Act of 1974 (26 USC
2813), as amended, the Department of Labor herein presents the
results of its investigation regarding certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the group eligibility requirements
of Section 246 of the Trade Act must be met. The Department has
determined in this case that the requirements of Section 246 have
been met.
A significant number of workers at the firm are age 50 or
over and possess skills that are not easily transferable.
Competitive conditions within the industry are adverse.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I conclude that increased imports of articles
like or directly competitive with those produced at Rock-Tenn
Company, Otsego, Michigan, contributed importantly to the
declines in sales or production and to the total or partial
separation of workers at the subject firm. In accordance with
the provisions of the Act, I make the following certification:
"All workers of Rock-Tenn Company, Otsego, Michigan, who
became totally or partially separated from employment on or
after September 29, 2003 through two years from the date of
this certification, are eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, and
are eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974."
Signed in Washington, D.C. this 4th day of February 2005.
/s/ Elliott S. Kushner
________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance
DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-55,742
ROCK-TENN COMPANY
OTSEGO, MICHIGAN
Negative Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance
In accordance with Section 223 of the Trade Act of 1974, as
amended (19 USC 2273), the Department of Labor herein presents the
results of an investigation regarding certification of eligibility
to apply for worker adjustment assistance. The group eligibility
requirements for directly-impacted (primary) workers under Section
222(a) the Trade Act of 1974, as amended, can be satisfied in
either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the firm,
have become totally or partially separated, or are
threatened to become totally or partially separated;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly competitive
with articles produced by such firm or subdivision have
contributed importantly to such workers’ separation or
threat of separation and to the decline in sales or
production of such firm or subdivision; or
II. Section (a)(2)(B) both of the following must be satisfied:
A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the
firm, have become totally or partially separated, or are
threatened to become totally or partially separated;
B. there has been a shift in production by such workers’ firm
or subdivision to a foreign country of articles like or
directly competitive with articles which are produced by
such firm or subdivision; and
C. One of the following must be satisfied:
1. the country to which the workers’ firm has shifted
production of the articles is a party to a free trade
agreement with the United States;
2. the country to which the workers’ firm has shifted
production of the articles is a beneficiary country
under the Andean Trade Preference Act, African Growth
and Opportunity Act, or the Caribbean Basin Economic
Recovery Act; or
3. there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced
by such firm or subdivision.
The investigation was initiated on October 6, 2004, in
response to a petition filed on behalf of workers of Rock-Tenn
Company, Otsego, Michigan. The workers produce paperboard rolls
for affiliated producers of paperboard.
The investigation revealed that criteria I.C and II.B have not
been met.
The subject firm does not import paperboard rolls, nor has
there been a production shift to a foreign location.
There are no extant certifications for trade adjustment
assistance benefits among the plants to which the paperboard rolls
were shipped.
In addition, in accordance with Section 246 the Trade Act of
1974 (26 USC 2813), as amended, the Department of Labor herein
presents the results of its investigation regarding certification
of eligibility to apply for alternative trade adjustment assis-
tance (ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the worker group must be certified
eligible to apply for trade adjustment assistance (TAA). Since
the workers are denied eligibility to apply for TAA, the workers
cannot be certified eligible for ATAA.
Conclusion
After careful review, I determine that all workers of Rock-
Tenn Company, Otsego, Michigan are denied eligibility to apply
for adjustment assistance under Section 223 of the Trade Act of
1974, and are also denied eligibility to apply for alternative
trade adjustment assistance under Section 246 of the Trade Act of
1974.
Signed in Washington, D.C. this 8th day of November 2004.
/s/ Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance