UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,281

WESTROCK CP, LLC "“ PANAMA CITY, FL MILL

A WHOLLY OWNED SUBSIDIARY OF WESTROCK COMPANY

INCLUDING WORKERS WHOSE WAGES WERE REPORTED THROUGH

WESTROCK SERVICES, LLC

PANAMA CITY, FLORIDA

Negative Determinations Regarding Eligibility

To Apply for Worker Adjustment Assistance

And Alternative Trade Adjustment Assistance

TRADE ADJUSTMENT ASSISTANCE

In accordance with Section 223 of the Trade Act of 1974, as
amended ("the Act"), 19 U.S.C. § 2273, the Department of Labor
("Department") 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) and
(b) of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For
the Department 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:

(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that 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

(2) 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and

(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:

(i) 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

(ii)(I) 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;

(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the African Growth and Opportunity Act,
or the Caribbean Basin Economic Recovery Act; or

(III)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.

For the Department to issue a secondary worker
certification under Section 222(b) of the Act, 19 U.S.C. §
2272(b), 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 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.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."

The investigation was initiated in response to a Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment Assistance (ATAA) petition dated April 28, 2022, and
filed on April 29, 2022 by a state workforce office on behalf of
former workers of WestRock CP, LLC "“ Panama City, FL Mill, a
wholly owned subsidiary of WestRock Company, including workers
whose wages were reported through WestRock Services, LLC, Panama
City, Florida (hereafter referred to as the "group of workers").
In accordance with 20 C.F.R. 618.110 group of workers is defined
as, ""¦including teleworkers and staffed workers."

The group of workers is engaged in activities related to the
production of linerboard and fluff pulp.

The petition alleges that worker separations, or threats
thereof, were due to "WestRock was unable to maintain and update
their equipment to continue fluff pulp production because the
company does not have the ability to compete with APRIL Group,
whom is investing $70 million in the construction of a new paper
mill in Indonesia. The new mill will be capable of producing 1.2
million tons of folding boxboard per year, a product that is
recyclable, biodegradable, and more desirable. Domestic
companies are importing paper products rather than purchasing
from WestRock."

During the course of the investigation, the Department
collected information from the petitioner(s), the workers' firm,
and other relevant sources.

With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that the workers' firm has not
experienced a decline in sales or production during the
relevant period under investigation. In fact, sales and
production increased when comparing April 2020 through March
2021 to April 2021 to March 2022.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift production of
linerboard or fluff pulp to a foreign country.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that the workers' firm is not a Supplier
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).

With respect to Section 222(b)(2) of the Act, the
investigation revealed that the workers' firm does not act as a
Downstream Producer to a firm (or subdivision, whichever is
applicable) 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), based on an increase in imports from, or a
shift in production to, Canada or Mexico.

With respect to Section 222(b)(3)(B) of the Act, the
investigation revealed that the workers' firm did not sustain a
loss of business with 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).

ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE

In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
("ATAA"), the group of workers must be certified eligible to
apply for Trade Adjustment Assistance ("TAA"). Because the group
of workers are denied eligibility to apply for TAA, the group of
workers cannot be certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the
investigation, I determine that all workers of WestRock CP, LLC

"“ Panama City, FL Mill, a wholly owned subsidiary of WestRock
Company, including workers whose wages were reported through
WestRock Services, LLC, Panama City, Florida, engaged in
activities related to the production of linerboard and fluff
pulp, are denied eligibility to apply for adjustment assistance
under Section 223 of the Trade Act of 1974, as amended, and are
also denied eligibility to apply for alternative trade adjust-
ment assistance under Section 246 of the Trade Act of 1974,
amended.

Signed in Washington, D.C. this 26th day of May, 2022



/s/ Jessica R. Webster
_______________________
JESSICA R. WEBSTER

Certifying Officer, Office of

Trade Adjustment Assistance