Joel R. Glucksman
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201-896-7095 jglucksman@sh-law.comFirm Insights
Patriot Coal To Impose Less Severe Cuts Than It Could Have
Author: Joel R. Glucksman
Date: July 26, 2013
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Bankrupt company Patriot Coal Corporation recently obtained court permission to eliminate its collective-bargaining agreements with unionized miners. However, the company said it plans to impose less severe cuts than it could under the court’s ruling in order to protect and maintain relationships with its workers.
In a statement, the company announced that it has made cuts to employee wages and benefits, but that the cuts were less than they could have been under the court’s recent ruling. In May, U.S. Bankruptcy Judge Kathy A. Surratt-States ruled that in addition to tossing out union contracts, the company could also slash health benefits for workers and retirees. However, Patriot said it will maintain retired workers’ health plans for the next two months while it continues negotiating with the union. Although talks with union representatives have been tense since the company filed for bankruptcy law protection, Patriot assured that recent discussions have already “resulted in substantial progress toward a consensual resolution.”
While the coal company and the United Mine Workers of America chose not to disclose the specifics of their talks, the groups said they hope to reach a resolution by the end of July.
“Patriot and the UMWA are continuing to meet in a diligent effort to resolve the outstanding differences and reach a consensual agreement,” the groups stated.
Although the coal company is attempting to assuage workers by making as few cuts as possible, many longtime workers and retirees continue to launch protests against it, which has led to many arrests in recent months.
UMWA President Cecil Roberts said he expects there will be significantly more protests until a resolution that takes miners and their families into account is reached.
“This is kind of like the struggle of the civil rights movement,” said Roberts, according to The Associated Press. “It didn’t end in a week or a month or a year or two. It was a long process. This is about justice and fairness, and anytime you’re fighting for justice and fairness, that fight might take a while. But we’re never going to stop.”
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