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Patriot and UMWA settle contract and healthcare modifications

AFTER weeks of negotiations, financially embattled producer Patriot Coal and the industry's large...

Donna Schmidt
Patriot and UMWA settle contract and healthcare modifications

The specific terms were not disclosed but the UMWA confirmed it would prepare this week for a ratification vote on August 16.

About 1800 active and furloughed union members in Kentucky and West Virginia are eligible to vote.

At the same time, Patriot will submit a motion to the US Bankruptcy Court in St Louis for authorization to enter into the deal.

“This represents the successful conclusion of a difficult negotiation in which both the UMWA leadership and Patriot management have invested many long days,” Patriot president and chief executive officer Bennett Hatfield said.

“Both parties want to preserve jobs and protect healthcare benefits for retirees by keeping Patriot on track for reorganization – and not liquidation.

“We appreciate the cooperation of the UMWA leadership and the sacrifices of all of our employees and retirees as we work to restore Patriot to viability."

UMWA said the settlement, the result of nearly around-the-clock talks, made “significant improvements” over an order issued by bankruptcy judge Kathy Surratt-States on May 29 as well as a plan Patriot implemented July 1.

“I believe we have reached something that can be taken to the membership for ratification,” UMWA president Cecil Roberts said.

“We have been able to restore, or at least improve upon, many of the most drastic changes that the judge ordered, including in the area of wages, healthcare benefits, paid time off, pensions and more.

“In addition, we have negotiated a mechanism that will allow retiree healthcare benefits to continue.”

The union said no settlement details would be released until its members had been notified of the terms.

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