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Foundation restates position on pending strike

MARYLAND-based producer Foundation Coal has released additional details regarding its position on...

Staff Reporter
Foundation restates position on pending strike

The United Mine Workers of America said last week its workers would walk off the job at 12.01am local time at the Cumberland and Emerald mines, both in Pennsylvania, and Wabash in Illinois.

“Each of these distinct entities has its own collective bargaining agreement with the UMWA, and each has been conducting collective bargaining through designated agents since January 2007,” said Foundation in a statement released Monday.

“Wabash, Emerald and Cumberland each believe the work stoppage is unwarranted and will impose unnecessary burdens on the affected employees, their families, their customers and the local communities.”

It clarified the details on the three union contracts, which due to “historical reasons” did not expire until March 31 and April 1, versus its other contracts with various operators which expired the last day of 2006.

The negotiations for two of the new contracts (under the union’s 2007 National Agreement), it said, began well in advance of the expiration of the 2002 pact. “Cumberland and Emerald … each confirmed that the National Agreement was indeed the agreement signed by its competitors, and that there were no side agreements that might put Cumberland and Emerald at a competitive disadvantage.

“With this confirmation, they separately in writing notified the UMWA in February 2007, almost six weeks before their 2002 national agreements were set to expire, that they were willing to sign the 2007 National Agreement.”

Foundation said that almost 1000 affected workers at its Pennsylvania mines are still ready to sign the agreement, which includes such provisions as an incremental pay increase, and improved health and pension benefits.

“They remain optimistic the UMWA will sign the contract it has endorsed as the ‘industry-wide agreement’ that would allow so many of their members to work uninterrupted under the very favourable terms of the new agreement,” Foundation said.

The company restated that the third mine, Wabash, was in a different situation. “As a result of many factors such as geology, aged infrastructure, the need to convey materials and coal more than 10 miles underground, and regionally soft market conditions, Wabash has not been profitable or competitive,” it said, adding that continued losses suffered by the operation over time have left it needing capital investments that only “significant … operational cost reductions” can rectify.

The problem is not a new one for the mine, Foundation said, adding that the 2002 National Agreement also was not signed by its workers. “In an effort to remain competitive, it conducted separate negotiations on wages, health care matters and other items.

“Because of these different operational realities, Wabash is not in a position to operate under the 2007 National Agreement.”

Foundation also maintained that the three companies, while being reported otherwise, are conducting their own collective bargaining negotiations with the group and have done so for more than 30 years. “They do not share equipment, employees, customers, day-to-day management, or any of the other factors used to establish a 'single employer' status with Wabash.”

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