Denied
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TAW-74182  /  Chicago Packaging Company (Chicago, IL)

Petitioner Type: Workers
Impact Date:
Filed Date: 06/03/2010
Most Recent Update: 02/09/2011
Determination Date: 02/09/2011
Expiration Date:

DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-74,182

CHICAGO PACKAGING COMPANY
NOW KNOWN AS 1855 LLC
DOING BUSINESS AS CHICAGO PACKAGING COMPANY
CHICAGO, ILLINOIS

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (c)
or (f) of Section 222 of the Act, 19 U.S.C. § 2272(a), (c), (f).
For the Department of Labor to issue a certification for workers
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), the
following three criteria must be met:
I. The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2282(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

II. The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely, AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(i)(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm.

III. The third criterion requires that the increase in imports
or shift/acquisition must have contributed importantly to
the workers' separation or threat of separation. See
Sections 222(a)(2)(A)(iii) and 222(a)(2)(B)(ii) of the Act,
19 U.S.C. §§ 2272(a)(2)(A)(iii), 2272(a)(2)(B)(ii).

Section 222(d) of the Act, 19 U.S.C. § 2272(d), defines the
terms "Supplier" and "Downstream Producer." For the Department
to issue a secondary worker certification under Section 222(c)
of the Act, 19 U.S.C. § 2272(c), to workers of a Supplier or a
Downstream Producer, the following criteria must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article or
service that was the basis for such certification; and

(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.

Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(f) of the Act, 19 U.S.C. § 2272(f).
The group eligibility requirements for workers of a firm
under Section 222(f) of the Act, 19 U.S.C. § 2272(f), can be
satisfied if the following criteria are met:
(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a
domestic industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of
1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));
(2) the petition is filed during the 1-year period
beginning on the date on which--
(A) a summary of the report submitted to the
President by the International Trade Commission
under section 202(f)(1) with respect to the
affirmative determination described in paragraph
(1)(A) is published in the Federal Register under
section 202(f)(3); or
(B) notice of an affirmative determination described
in subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b)(1), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on June 3, 2010 on behalf of workers Chicago Packaging
Company, now known as 1855 LLC, doing business as Chicago
Packaging Company, Chicago, Illinois (Chicago Packaging). The
workers were engaged in activities related to the production of
folding cartons used for packaging. 1855 LLC, doing business as
Chicago Packaging Company, relocated the Chicago, Illinois
location to Elk Grove, Illinois in 2009.
The petitioners alleged that worker separations were
attributed to the loss of customers' sales and the loss of
business with firms with Trade Adjustment Assistance (TAA)
certified worker groups.
With respect to Section 222(a) of the Act, the
investigation revealed that workers of Chicago Packaging who
were engaged in activities related to the production of folding
cartons used for packaging do not meet the criteria for
certification.
Criteria II have not been met.
Chicago Packaging did not import folding cartons used for
packaging, shift the production of folding cartons used for
packaging offshore, or acquire folding cartons used for
packaging from offshore manufacturers in 2008, 2009, or January
through May 2010.
The Department surveyed Chicago Packaging's major
declining customers regarding purchases of folding
boxes/cartons during the period the subject of the
investigation. The survey revealed no imports of folding
boxes/cartons during the relevant period.
With respect to Section 222(c) of the Act, the
investigation revealed that workers of Chicago Packaging who
were engaged in activities related to the production of folding
cartons used for packaging do not meet the criteria for
secondary worker certification.
Criterion (2) has not been met.
Chicago Packaging is not a Supplier or Downstream Producer
to a firm that employed a group of workers who received a
certification of eligibility under the Tract Act. The
petitioners provided the names of two customers whose workers
were certified eligible to apply for TAA. The investigation
revealed that Chicago Packaging does not qualify as a Supplier
defined as a firm that produces and supplies directly to another
firm component parts for articles, or services, used in the
production of articles or in the supply of services, as the case
may be, that were the basis for a certification of eligibility
under subsection (a) of a group of workers employed by such
other firm." Chicago Packaging did not supply a component part
as it relates to the customers provided by the firm and
petitioner. Furthermore, a Downstream Producer is defined as a
firm that performs additional, value-added production processes
or services directly for another firm for articles or services
with respect to which a group of workers in such other firm has
been certified under subsection (a). Additionally, as defined
this is not the case with the customers identified by Chicago
Packaging or the petitioners.
Finally, the group eligibility requirements under Section
222(f) of the Act, 19 U.S.C. § 2272(f), have not been satisfied
because Chicago Packaging has not been publicly identified by
name by the International Trade Commission as a member of a
domestic industry in an investigation resulting in an
affirmative determination.



Conclusion
After careful review of the facts obtained in the
investigation, I determine that workers of Chicago Packaging
Company, now known as 1855 LLC, doing business as Chicago
Packaging Company, Chicago, Illinois, engaged in activities
related to the production of folding cartons used for packaging
are denied eligibility to apply for adjustment assistance under
Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C., this 9th day of February, 2011



/s/Elliott S. Kushner_____________
ELLIOTT S. KUSHNER
Certifying Officer, Office of
Trade Adjustment Assistance