Board Converting News, March 30, 2020

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years March 30, 2020 VOL. 36, NO. 13

Arrow Carton: Heading In The Right Direction BY LEN PRAZYCH

WHAT’S INSIDE 6 x x 8 x x 12 x x 26 x x Working From Home: Plans For Today’s Uncertainty 12 Baysek Machines Celebrates 25 Years Of Innovation 8 AICC Chairman Jay Carman: ‘A Mindset Of Growth’ 52 Communicating In Crisis: Initiate, Interact, innovate AICC Members On Impact Of COVID-19: Uncertainty AICC, The Independent Packaging Associa- tion, last week released the results of a sur- vey of its general and supplier members on the effects of COVID-19 on their business op- erations. In a survey conducted in the week of March 16, 89 of the 209 AICC general member com- panies – or 43 percent -- responded to ques- tions about the kinds of impacts they are seeing in their businesses as the coronavirus pandemic spreads throughout North America. The survey was sent concurrent with a similar poll to AICC’s supplier members. Of the respondents, 62 percent are sheet plants; 33 percent are corrugator plants and five percent are sheet suppliers. The initial effects of the coronavirus pandemic and its related societal and business restrictions re- lates to contacting customers directly. Fully 80 percent of those responding said they faced an inability to call on their custom- ers directly due to vendor and visitor restric- tions. This was followed by an increase in employee absences, then difficulties in the upstream supply chain. Not all the news, ho- ever, was negative, even if the underpinning CONTINUED ON PAGE 67

Wisconsin is a midwestern U.S. state with the geographic anomaly of having coastlines on two Great Lakes (Michigan and Superior) and a vast interior of forests and farms. It is referred to as “America’s Dairy- land” because the state is the leading producer of dairy products in the country and has a long history of cheese production. Those more famil- iar with the landscape will also know that Wisconsin is home to several major paper and corrugated industry machine manufacturers, as well

as an abundance of integrated and independent converters, each vy- ing for an ever-larger wedge of the state’s insatiable demand for boxes. It is in a competitive corner of greater Milwaukee in which Richfield, Wisconsin based Arrow Carton Co., a family-owned independent, now in its third generation, has carved a niche that only continues to grow. The company was founded in the early 1970s by the late James Mayer, who was working for an aforementioned integrated. He realized there was a big demand for small runs, exactly the kind of work large integrateds didn’t want to do. So Mayer purchased Arrow Carton Co., a small operation, which had been making boxes and related products since 1949, with the goal of running stock boxes in very small quanti- ties. He began building business at his new sheet plant with five or six employees and a few pieces of old converting equipment. The management/ownership team at Arrow Carton, from left, Brian Wilke, Plant Manager, and owners Shad Young, Cam Young and Katie Gohlke.

CONTINUED ON PAGE 32

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AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indi- cated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.

REGION E. Coast Midwest Southeast Southwest West Coast U.S. Average

42# Kraft liner $885.00-890.00 $900.00-910.00 $900.00-910.00 $900.00-910.00 $930.00-940.00 $903.00-912.00

26# Semi-Chem. Medium

Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.

$820.00-850.00 $835.00-855.00 $835.00-855.00 $835.00-855.00 $865.00-875.00 $838.00-858.00

SHEET PRICES BY REGION (AVERAGE) Per 1MSF, local delivery included, 50MSF single item order, truckload delivery. Sheets

E. Coast Midwest South-SW S. CA N.CA/WA-OR US Aver.

200# 275#

$62.26

$72.05

$62.69 $82.80

$85.35 119.54

$73.13 101.29

97.32

99.89

90.86

113.65

OYSTER UP-CHARGE 8.34

8.34

275# DBL-WALL 350# DBL-WALL

107.46 118.45

114.69 129.32

116.54 137.25 117.82 145.56

141.08

122.76

148.46

131.80

CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton.

42# Kraft Liner 26#

Semi-Chem Medium

East West

$920.00 $965.00

$910.00 $945.00

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VERAGE CONTAINERBOARD PRICES.indd 1

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Letter From The Publisher: With This Issue, BCN Is Now Also Online We are facing unprecedented challenges as COVID-19 continues to have an impact on all of us. I’m proud to say

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the NV team hasn’t missed a beat in its mission to provide a first-rate pub- lication each week. We will continue to provide the industry “need-to- know” information both in print and now with this issue, digitally, at www. boardconvertingnews.com . The cancellation of industry meet-

Robyn Smith

ings for the next few months has changed the way most companies are conducting business but you still need to be informed about what’s going on in our industry. As a small family-owned business, NV Publications has the resources it needs to maintain “business as usual” and much more. With the re-launch of our website and the de- but of Board Converting News online, we will further ex- pand our reach to our readers and offer additional digital marketing opportunities to our advertisers. To both con- verters and suppliers, we value and thank you for the sup- port you have shown us for more than 35 years. We will do our best to continue to provide the content you can use to maintain and grow your businesses. -Robyn Smith, President & Publisher, NV Publications

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Working From Home: Contingency Plans In Today’s Uncertrainty BY MARY DRAIN COVID-19, the novel coronavirus outbreak, has sparked sweeping measures to mitigate its spread across the Unit-

cent require admission to an intensive care unit. This and the contagiousness of the virus has led to social distanc- ing, voluntary isolation, and mandatory lockdown in some countries and circumstances. This situation brings real challenges. An article in Risk Management Monitor offers constructive things to keep in mind when reviewing your business continuity plan. They also offer a good reminder that although you may not be directly affected by a pandemic, a vendor in your supply chain could be. To protect your operations and ensure continuity of services or products to your customers, it is important that you: • Map your dependencies to understand where disrup- tions might impact your value chains. • Review the preparedness of your critical third parties (suppliers, vendors, service providers, etc.). • Identify points of failure in your business-systems.

ed States and the world. The World Health Organization (WHO) updat- ed guidance for doctors treating COVID-19 (March 13th) and provided explanations to categorize most of the cases doctors will see. According to the March 13th report, while most people with

COVID-19 develop mild or uncomplicated illness, approx- imately 14 percent develop a severe case of the disease requiring hospitalization and oxygen support and five per- Mary Drain

In addition, keep communication with your employees open. It’s important that they are aware of the probable scenarios and know what is expected of them. And what about the many jobs in our industry that require employee presence? Now is the time to re-evaluate your contingency plan, taking into account updated knowledge of the coronavirus. “Re-evaluate” is essential; new information on the virus and its ability to spread is being revised daily. Check and validate your sources. Facebook, Google, Microsoft, Reddit, and Twitter are part of a group, inviting others to join its efforts to combat fraud and misinformation about the virus and elevate authoritative information on their platforms. On a personal level you may ask, “Why should I care if I don’t think I’ll get very sick?” or “Isn’t preparation for isolation selfish and extreme?” Social distancing requires preparation and is widely seen as the best available means to flatten the curve of the pandemic. “Flatten the curve” is how epi- demiologists describe slowing the spread of infection. An individual who doesn’t get very sick can pass the infection along to others and some of them may have to be hospitalized. “A surge of patients with the virus could fill beds also needed by a broad range of other people, such as cancer patients, new- borns or car accident victims,” stretching limited hospital resources and health-care workers dangerously. “This is a condition that may not pose a threat to the individual but a threat to the community,” warns Josh- ua Sharfstein, Vice Dean for Public Health

CONTINUED ON PAGE 8

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Working From Home (CONT’D FROM PAGE 6)

Puhl custom designs systems to meet your needs. • Moving to a new facility? Puhl has experience moving entire plant systems all while minimizing down time in BOTH plants during the transition. • Below roof AND above roof systems custom designed to meet your needs. • New and Remanufactured Equipment (balers, blowers, separators, filters and more). Our Remanufactured equipment includes a warranty and offers significant savings. • NFPA and OSHA compliant systems designed by our NFPA trained engineering team. • Dust Briquetters, Certified Explosion Isolation Valves, Flame Front Diverters and more to control dust and meet NFPA requirements. • PLC Touch Screen Controls with Real Time Pressure Balancing and Real Time Remote Monitoring available on your smart phone or computer. more control over when, where and how they work don’t hurt business performance. Instead, such policies can lead to less stressed, more satisfied employees who are less likely to quit. Mary Drain is the Director of Technical Services at Fibre Box Association (FBA). Reach her at mdrain@fibrebox.org . FBA Cancels 80th Anniversary Annual Meeting Over the last couple of weeks, the Fibre Box Association (FBA) has been monitoring the rapidly-evolving concerns about COVID-19. The overall well-being of FBA’s member companies, their employees, our staff and the entire cor- rugated packaging industry has been at the core of the as- sociation’s mission since its founding in 1940. At this time, FBA remains open and will continue to serve its members. The association also wants to provide its members with an update on upcoming events. FBA has cancelled the 80th Anniversary Annual Meet- ing scheduled for April 27-29, and the FBA Executive Con- ference scheduled for April 26-27, 2020. The health and safety of members at FBA events is our greatest priority. We look forward to the FBA Annual Meeting in 2021. As soon as dates and a location are available, we will share those details with you. FBA is working on cancellation de- tails and will update registrants soon.

Practice and Community Engagement at Johns Hopkins University’s Bloomberg School of Public Health in Balti- more. Unlike “Doomsday Preppers,” the coronavirus pandem- ic crucially requires flattening the curve of the crisis - ex- actly so the more vulnerable can fare better, so that our infrastructure will be less stressed at any one time. That requires cooperation by individuals and communities. To flatten the curve, epidemiologists talk about two im- portant numbers: how infectious a disease might be or the number of people that are infected by each person who’s been infected; and the number of people who die as a result of being infected. But these numbers are not con- stants independent of our actions. They depend on the characteristics of the pathogen but also our response. By preparing now we can alter both of those key numbers and save many lives, according to Preparing for Corona- virus to Strike the U.S., a Scientific American blog article. One silver lining of COVID-19 may be the ability to as- sess the effectiveness of remote work. Does remote work enable employees to concentrate on high-value results and get rid of low-value routines that may impede perfor- mance? Also, are there more effective and efficient ways to communicate that enable time for concentrated work? New research posted in the American Sociological Review shows that more flexible work policies that give workers

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March 30, 2020

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AICC To Hold COVID-19 Weekly Audio And Video Conference

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month February 2020

AICC, The Independent Packaging Association, has re- ceived several inquiries from members around the country in response to the most recent developments in the coro- navirus/COVID-19 pandemic. In an effort to provide timely information and allow the industry to discuss common concerns and solutions to the challenges posed by this national emergency, AICC will hold a national audio and video conference every Friday for the next three weeks.The first meeting took place on Friday, March 20, the second on March 27. The next two meetings will be held on April 3 and April 10, both at 2:00 p.m. EST Visit https://zoom.us/j/535661904 and join Zoom Meeting: ID 535 661 904. Dial by Location (Meeting ID: 535 661 904) Chicago: (312) 626-6799 and New York (929) 205-6099. The purpose of this call is to allow members to ask questions of AICC leadership and other box making mem- bers and share what they are doing in their companies to address this unprecedented situation in our industry’s and in our nation’s history. The call will last one hour. Before the meeting starts, please send AICC your three most pressing questions to Alyce Ryan at aryan@aiccbox.org.

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

30.298 29.740

1.9

7.575 7.435

1.9

Industry Total

Year-to Date

February 2020

Year

Actual

Percent Change Avg Week Percent Change

2020 2019

64.242 63.022

1.9

7.648 7.503

1.9

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2020 2018

2.5165 2.4590

2.3

5.3333 5.2069

2.4

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Feb. Jan.

2.2978 2.3456

-2.0

3.7 3.7

0.0

Shipping Days

Year

Month

Year-to-Date

2020 2019

20 20

42 42

SOURCE: Fibre Box Association

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March 30, 2020

Baysek Machines Celebrates 25 Years Of Customer-Focused Innovation

According to the calendar and business records in the company’s archives, Baysek Machines, Inc. incorporated in 1995 after its birth in a steel shed in Amherst, Wisconsin, a rural village about 75 miles west of Green Bay.

Its 25 years of endurance and success in the ever-competitive corrugated industry, however, can be attributed to the blood, sweat and tears of the company’s founder, David “Dave” Helbach. In the decades prior, Helbach was amassing the knowledge and wherewithal to design and develop a flat cutting die system to accommodate a rotary anvil cutting process, the system at the heart of Baysek’s innovative contribution to the industry. The Entrepreneurial Spirit Born and raised in Amherst, Helbach is a self-admitted “farm boy who The Baysek team in front of their flagship product, the C-170 die cutter.

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didn’t like milking cows,” but grew up being intrigued by all things mechanical. Dave’s eagerness to make use of his inquisitive mindset contributed to the start-up and op- eration of five different business- es in the corrugated industry be- tween the years of 1966 and 1993. Helbach claimed he “retired” from business in 1993 at the age of 58. Never one to idly enjoy what many consider their golden years, Helbach “leisurely” began devel- oping a simple die cutting pro- cess for a business friend. “I met a machine manufacturer from En- gland at a Düsseldorf trade show, demonstrating what I considered a

Baysek Machines, Inc. founder, Dave Helbach.

very clever concept and convinced my friend to buy a machine,” says Hel- bach. “There was one major problem, however. The die cutter didn’t work at performance levels expected and desired.”

CONTINUED ON PAGE 14

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Baysek Machines (CONT’D FROM PAGE 12)

A Successful Cutting Die Concept In February of 1995, with only a few weeks of “true re- tirement” under Helbach’s belt, Baysek Machines Inc. was formed and was quickly successful in automating a simple, effective method that facilitated a flat die process to a ro- tary anvil cutting process. This concept was a contributing force behind the English machines success. In early 2001, when the English company discontinued manufacturing in the U.K., Baysek made a significant cash investment to fund the group of redundant English em- ployees. Baysek initiated design changes of the initial pro- totype, adding servo technology in its new model C-1700 Cutter MK II, which improved operational speed, registra- tion control and easier use. It was introduced to the in-

dustry at six locations in the U.K., and four in the U.S. All machines contin- ue to operate successfully. Though all new Baysek die cut- ters are now manufactured in the U.S., United Kingdom based, Baysek Machines & Engineering Ltd., still op- erates as a parts and service hub for

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March 30, 2020

Baysek Machines (CONT’D FROM PAGE 14)

As technology constantly advances, the U.S. manufac- tured C-170 continues the same specifications, but with many improvements that minimize down time and maxi- mize operator convenience. The C-170 flat die, rotary anvil diecutter runs simple to complex, nick-free, fully automat- ically stripped jobs that are difficult or impossible to effi- ciently run on traditional rotary and platen diecutters. The servo driven machine handles sheet sizes from 20-inches by 20-inches to 55-inches by 67-inches. Flute thicknesses from F to B/C doublewall, solid board and thin board, sin- gle face and open face corrugated are easily mastered. Up to 60 finished pieces per cycle are accurately counted and neatly stacked at a maximum machine speed of 1800 sheets per hour. Print registration can be held to +/- 1mm and preprint flexo and litho laminated material can be suc- cessfully converted despite the inability to matrix score.

With significantly less manpower than other methods, clean and orderly finished units exit the machine ready for shipping preparation at the control of one operator. The Next Generation A Baysek C-170 die cutter under construction in the company’s facility in Nelsonville, Wisconsin.

DESIGNS THAT INCREASE PRODUCTION

In 1998 Helbach’s daughter, Lisa Waldoch, and her husband David Waldoch, joined Dave in the family business. Lisa left Bay- sek in 2009 to tend to their growing sons, while David has remained in the business for 22 years. Currently vice president, David re- mains manager of operations, which includes administration, accounting, inventory control and on-site machining/manufacturing. “While David is hearing impaired, he certainly is not handicapped,” Dave Helbach says. “At a young age, he learned to read lips and speak over learning to use sign language. With to- day’s added technology and communication options, he operates extremely well.” Helbach’s daughter, Heidi Pronschinske, joined the company in 2010 as Baysek’s Mar- keting and Sales Manager. “Heidi has made a major contribution to our advertising pro- gram and trade show opportunities, and she has developed many new market areas with constant dedication to promoting our system, mainly in Europe, and attracting West Coast and other worldwide inquires,” Helbach says. “She has brought a more professional image to Baysek, as well as being responsible for several direct sales.” In 2015, Dave Helbach’s son, Mark Hel- bach, joined the company and took on the role of president in 2017. Mark Helbach spent 26 years in the municipal truck equipment in- dustry in a variety of positions from sales to management before joining the family busi- ness. Dave says his son is quite knowledge- able about the company and the corrugated industry. “Mark helped out with my former businesses, paying his way through four

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AICC Chairman Jay Carman: ‘A Mindset Of Growth’

A: I began working at StandFast Packaging in 1985 after working at Evergreen for three years. I started out in sales and over the years began picking up some other admin- istrative duties, such as handling the company insurance plans and meeting with machine vendors. Because it was a smaller business it provided me with more opportunities to become involved in a lot of different aspects of the com- pany. I became president of StandFast in 1997. Q. What is it like working for a family-owned indepen- dent in this industry? A: I’ve been working in the corrugated industry for the past 35 years. I like the fact that the industry is changing all the time and that I am not doing the same thing every day... and there are a lot of interesting challenges that come up on a daily basis. When you work for an independent, fam- ily-owned business in this industry, it’s satisfying to have the opportunity to make a direct impact on the success of the company. Being an independent has made it easy to develop close relationships with our employees, as well as with other independents. Q. How long have you been an AICC member and what value has it brought StandFast? A: StandFast is a founding member of the AICC, which has been bringing value to our company from the very begin- ning of our membership. My father’s decision to join AICC CONTINUED ON PAGE 20

AICC Chairman Jay Carman of Carol Stream, Illinois based StandFast Packaging is halfway through his term and was

looking forward to addressing mem- bers and guests at the 2020 Spring Meeting in San Diego, California, which had to be canceled due to the coronavirus pandemic. Those mem- bers and guests were also expecting to hear from Jay and to learn more about him personally, as well as his

Jay Carman

message for the group. We here at Board Converting News also had some questions for Jay. Here are his an- swers to our questions: Q. Jay, where did you grow up, where did you go to col- lege and what was your first job after graduation? A: I grew up in Elk Grove Village, Illinois, and went to col- lege at Milliken University in Decatur. I graduated in 1982. I went to work straight out of college at Evergreen Marine Corporation, an ocean freight carrier, doing import and ex- port sales. Q. When did you begin in the family business and what have your roles been through the years?

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AICC Chairman Jay Carman (CONT’D FROM PAGE 18)

Q: You’ve been AICC Chairman since the fall meeting. What have been some of the highlights thus far? A: I’ve enjoyed my experience as AICC Chairman over the past six months. One of my first highlights was when I at- tended the Folding Carton & Rigid Box dinner at the Toron- to meeting. It was great to have the opportunity to meet those members who are an important part of our associa- tion. Another highlight I experienced was the West Coast Golf Outing in October. I met a lot of new AICC members I may not have ever met had I not attended this outing. The AICC Canada holiday party was another great ex- perience. I admire that AICC Canada has still carried on the tradition of having this party every year. I enjoyed the casino tables and the Elvis impersonator, as well. Q: What have you learned as AICC Chairman that you didn’t know before? A: I never realized how much the members of the AICC respected and supported the Chairman posi- tion and AICC as a whole.

enabled him to apply what he learned at the meetings to help his company grow. The AICC exposed him to new ways of doing business. He saw the value of purchasing modern machinery and how to improve his company’s effi- ciencies, capabilities and gain an edge in the marketplace. Q: Jay, what is your theme as chairman? A: My theme as Chairman of the AICC is “Growth Mindset.” StandFast became a second-generation business when my three brothers joined me in the company. Our involve- ment in the AICC brought us the exposure of many new ideas and helped make StandFast a learning organization that was ready and open to change and growth. It enabled us to get out of our comfort zone and “fixed mindset” and take the risks that would move us forward in the market- place...just as our father did.

Q: What will you be doing now that the 2020 Spring Meeting is cancelled? A: My future plans are to continue visiting independent plants, and attending regional summits and some international meetings, assuming the travel restrictions are relaxed. Hopefully, we can overcome this unprece- dented public health crisis very soon. A.G. Stacker Adds Greene Group As New Agent Weyers Cave, Virginia based A.G. Stacker Inc. announced that The Greene Group has been signed on as the sales agent for the West coast, effective February 11, 2020. Frank Greene brings decades of experi- ence representing other corrugated machin-

ery companies and the A.G. products are the perfect complement to his current portfolio. “Frank’s knowledge of the territory, the cus- tomers, and his mar- kets make The Greene

Frank Greene

Group the right choice for A.G. Stacker,” said Tim Connell, Director of Sales. “Our team is excited about the addition and looks forward to comprehensive territory coverage, build- ing better relationships with our customers and offering A.G.’s innovative, patented solu- tions to the growing list of opportunities in the western U.S.” Greene can be reached at frank@greenehousegroup.com.

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March 30, 2020

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TAPPI Selects Fellows, Outstanding Young Professionals For 2020 TAPPI has announced it will bestow the title of Fellow on nine members and name five individuals as this year’s re- cipients of the Young Professional of the Year award. Fellow is an honorary title bestowed upon a small per- centage of TAPPI’s membership and is given to individuals who have made extraordinary technical or service contri- butions to the industry and/or the Association. The following individuals have been named 2020 TAP- PI Fellows. • John Bergin, Owner, Technical and Investor Consulting, LLC • Fernando Bertolucci, Chief Technology and Innovation Officer, Suzano • Jim Brewster, Retired. Former Senior Project Advisor, Irving Pulp & Paper, Limited. • Donald Haag, Vice President of Manufacturing Ser- vices, Packaging Corporation of America • Mark Lewis, CEO of Sustainable Fiber Technologies (SFT) and Phoenix Pulp and Polymer; recipient of the 2020 Gunnar Nicholson Gold Medal Award • Przemyslaw Pruszynski, Ph.D., Consultant, Pruszynski Paper Chemistry Consulting, LLC. • Jack Tippett, Ph.D., Consultant, EnTech Engineering, PC • Roland J. Trepanier, Ph.D., President, OpTest Equip- ment Inc. • Angela Wensley, Ph.D., P.E., Retired. Former Consul- tant, Angela Wensley Engineering Inc. Each year, the Association may elect members as TAP- PI Fellows in recognition of meritorious service to the Association and the industry. The title Fellow is also con- ferred upon TAPPI Board chairs, vice chairs, and directors at the end of their terms of office, and upon Gunnar Nich- olson Gold Medal Awardees and Herman L. Joachim Dis- tinguished Service Recipients. The Young Professional of the Year is an annual contest that identifies aspiring young leaders in the global forest products, pulp, paper, tissue, packaging and associated industries. Eligible nominees are age 35 or younger with less than 10 years of industry experience. The winners of the 2020 TAPPI Young Professionals of the Year awards are: • Peyton Clifton, Mechanical Project Engineer, Domtar • John DeJarnette, Senior Researcher, WestRock Corpo- ration • John Edwards, Operations Superintendent, Domtar • Natasha Melton, Senior Researcher, WestRock Corpo- ration • Nika Wanserski, Shift Supervisor, Neenah, Inc. The award recognizes Young Professionals who have made significant contributions to the forest products in- dustries in the following areas: Leadership, Community CONTINUED ON PAGE 24

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TAPPI Selects (CONT’D FROM PAGE 22)

“Corrugated cardboard packaging is the backbone of the American supply chain,” said Fibre Box Association President and CEO Dennis Colley. “As COVID-19 changes our daily lives, we want to assure consumers that the box industry is continuing to operate and to deliver needed packaging to our customers who supply grocery stores, pharmacies, doctor’s offices and hospitals with food and medical supplies to keep us all healthy and safe.” Disruption in the availability of these goods would cause significant hardships to consumers across the coun- try who depend on steady and stable supplies. Corrugat- ed cardboard manufacturers are dedicated to continuing to operate box plants under the guidelines of Center for Disease Control and Prevention (CDC) and the Occupa- tional Safety and Health Administration (OSHA) to ensure products continue to flow to market. Fibre Box Association joins American Forest & Paper Association in encouraging federal, state and local gov- ernments to recognize the corrugated packaging industry as “essential” when drafting “Shelter in Place” orders. We ask for clear exclusion of our manufacturing operations to limit disruptions to the supply chain. “We are grateful for the dedication and commitment of all people working in the corrugated packaging industry,” said Colley. Serving the corrugated industry since 1940, the FBA ac- tively promotes the benfits of corrugated by communicat- ing with its members, their customers and retailers.

Service, and Problem-Solving Contributions to Scientific or Engineering Projects. Winners are recognized in TAPPI’s various publications and online. In addition, they are granted one full year of TAPPI membership and are invited to attend their division specific TAPPI conference during 2020 to receive their award. For more information, visit www.tappi.org . TAPPI is the leading association for the worldwide pulp, paper, packaging, tissue and converting industries. Through information exchange, events, trusted content and networking opportunities, TAPPI helps members ele- vate their performance by providing solutions that lead to better, faster and more cost-effective ways of doing busi- ness. It has provided management training and network- ing to the industry’s leaders for more than 100 years. Box Industry Keeps Supply Chain Moving Amid COVID-19 Challenges The manufacturers of corrugated cardboard boxes are working to keep transport packaging flowing to makers of essential products including packaging for food and other consumer products, medical and pharmaceutical products, tissue and hygiene products and more amid the COVID-19 pandemic.

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March 30, 2020

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How To Make Do With Less: Layoffs, Reductions In Hours And Workforce BY JOEL GREENWALD Considering the rapidly changing economic and social landscape caused by COVID-19, many employers find

potentially pay to employees if notice is not provided. Exceptions may exist for unforeseen business reasons – but not always. • Overtime Exemption Status May Govern Employee Treatment : As a reminder, with regard to pay structure and overtime requirements, both federal law and the laws of states that address it, require that all employees be paid overtime wages (1 ½ times their regular hour- ly rate) for all hours worked over 40 in a workweek, unless that employee falls into an exemption from the rule. If they are not under an exemption, they are called “non-exempt” and must be paid overtime wages (for hours worked over 40 hours in a week). If they are un- der an exemption based on their job’s duties and re- sponsibilities, they are called “exempt” employees and do not get overtime pay. Exempt employees get a set salary every week that cannot be decreased except in limited circumstances. This distinction can be key when decreasing pay. • New Legislation May Affect Company Decisions : At this time, there is legislation being circulated through the federal government that may involve sweeping paid leave protections for employees who are forced to take time off from work for various COVID-19-related reasons (such as: for the employee’s own treatment, preventive care, or quarantine, or to care for a family member who is being treated or a child whose school

themselves wondering what might happen if they are unable to main- tain their current workforce at its cur- rent level. Clients have reached out to ask important and pressing ques- tion such as: Can I reduce employee hours? Can I reduce pay across the board? What can I do to avoid a lay-

Joel Greenwald

off? What if I have to lay off? Can it be temporary? I have heard the term “WARN” notice; what is it? These are all good questions. We will address these, and more, below. First, we’ll discuss some key things you need to know to put these questions in context. And after that, you’ll find answers to some of these timely questions. • Notice to Employees and Government of Termina- tions/Reductions in Force : The federal Worker Ad- justment and Retraining Notification Act (WARN) and state equivalents require certain larger companies to give advance written notice to employees of certain large-scale terminations and reductions in force (such as mass layoffs and plant closings, among others) and,

CONTINUED ON PAGE 28

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March 30, 2020

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Making Do With Less (CONT’D FROM PAGE 26)

is closed). Under the proposed legislation, employers may be required to provide up to two weeks of job-pro- tected leave of full pay and up to 10 weeks of leave of partial pay to affected employees. In the event these protections go into effect, deciding how to address lack of work and potential business shut-downs may become more legally complex. Given the changing landscape, it’s particularly important for business own- ers and executives to be strategic and proactive about potential changes to their workforce in the coming days and weeks. Our feedback below is based on the status of the employment laws as it stands today. Frequently Asked Questions Here are responses to Frequently Asked Questions that address business owners’ concerns about how they will make do with less budget to support employees. Please note that business situations vary and the answers for your situation are often fact-specific. We hope the following FAQs address questions that are relevant and pressing to your business, but they are only general legal information. 1. What are the legal considerations if I need to lay-off a group of employees? Depending on the size of your company, the number of employees being laid off, and the location of the layoff, notice obligations under the federal Worker Adjustment and Retraining Notification Act (WARN) and state equivalents may be triggered. For example, in New York, employers with 50 or more full-time workers may need to report a loss of employment of 25 employees and give those employees and the gov- ernment at least 90 days’ notice of the termination (i.e., continue to pay employees during that time). Although some exemptions (such as unforeseen business circum- stances) may apply in light of COVID-19, and some tem- porary work stoppages may not require WARN notice, the WARN laws are highly technical and the potential penal- ties are steep, so we recommend consulting with employ- ment counsel on your particular situation before terminat- ing multiple employees at once. Other legal considerations include the potential payout of sick and/or vacation hours, how layoffs may affect com- pany (and the employees’) benefits and what legal obliga- tions are triggered under the benefits plans and relevant laws (such as COBRA). The timing of paying employees their final paychecks, must comply with the applicable state law. In addition, to the extent you offer a severance in exchange for a release to laid off workers, there may be certain additional notice requirements under the Older Workers’ Benefit Protection Act. 2. Business is down. To avoid a layoff, can I just reduce everyone’s hours? For employees not entitled to overtime (including those who are paid on an hourly basis), general-

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March 30, 2020

How Long Does COVID-19 Last On Corrugated Surfaces?

surfaces or remove germs. To properly disinfect, prod- ucts often need to remain on a surface for 3-5 minutes. • Sanitizing: Kills germs, but not as effectively as disin- fecting. While some products can be used to do both, disinfecting generally requires more time and work. Sanitizing is often easier to accomplish, and still con- tributes to reducing the risk of infection. For the most up-to-date information on work environ- ments, companies should refer to the US Centers for Dis- ease Control and Prevention and OSHA. What About Delivered Packages? The surge in deliveries, including more food deliveries as restaurants are closed across the country, has led to the question of whether people can contract COVID-19 from packages. The CDC said the chances of getting corona- virus from delivered packages is likely very low. Infectious disease experts still recommend leaving packages out- side for a day if possible. However, workers at some of the country’s top deliv- ery companies have indicated that procedures may need improvement to keep everyone save from the illness. UPS said in a statement that it has been disinfecting its facili- ties and vehicles daily, providing sanitizing supplies to all drivers and telling sick employees to stay home. Similar policies have also been in effect at FedEx and the U.S. Postal Service. UPS and FedEx have also stopped requir- ing in-person signatures for most package deliveries to follow social distancing guidelines.

According to the Centers for Disease Control (CDC), there is no evidence the coronavirus is spread by coming into contact with contaminated surfaces, but several news out- lets have picked up a story about researchers who have tested common home and hospital materials. In two of the stories, it’s noted that COVID-19 likes plastic and stainless steel surfaces best and can last on those surfaces for up to three days compared to up to 24 hours on corrugated. There is no evidence to support transmission from products or packaging. According to the World Health Organization (WHO), the likelihood of an infected person contaminating commercial goods is low and the risk of catching the virus that causes COVID-19 from a package that has been moved, travelled and exposed to different conditions and temperatures is also low. Additional information is available from the CDC and EPA to help educate the public on the differences be- tween cleaning, disinfecting, and sanitizing methods: • Cleaning: Removes germs and dirt from surfaces, typ- ically through soap and water. This method lowers germ numbers but doesn’t usually kill or destroy them. Cleaning surfaces is a first step, prior to disinfection. • Disinfecting: Kills surface germs through disinfectant chemicals, which do not necessarily clean visibly dirty

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