Patriot Coal, mine workers' union reach dealAug 13 - McClatchy-Tribune Regional News - Jeffrey Tomich St. Louis Post-DispatchPatriot Coal Corp. and the union representing thousands of employees and retirees tentatively resolved a bitter dispute over pay and benefits in a bid to help the struggling coal producer emerge from bankruptcy. Details of the agreement won't be released until members of the United Mine Workers of America vote on it Friday. But terms are significantly better than what had been proposed by Patriot and approved by a federal judge three months ago, according to union leaders. "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, health care benefits, paid time off, pensions, and more," UMWA President Cecil Roberts said in a statement. Ultimately, the settlement could help keep cash-strapped Patriot afloat and protect increasingly scarce mining jobs across Appalachia. But that will require ratification by a majority of 1,800 active union employees and well as court approval. Creve Coeur-based Patriot filed for Chapter 11 bankruptcy protection 13 months ago. And the union's role in the case has loomed large since the beginning. In its bankruptcy petition, the coal producer cited several key reasons for its financial troubles. Among them were a deep slump in coal markets, tougher environmental regulations, a sluggish economy and burdensome legacy liabilities. The bulk of those liabilities -- some $1.6 billion -- were health benefits for thousands of retired miners who worked for predecessor companies, including Peabody Energy Corp. and Arch Coal Inc. Patriot insisted that it needed $150 million a year in concessions from the union or it would run out of cash and be forced to liquidate. And after a heated trial in St. Louis federal bankruptcy court this spring over the necessity of proposed cuts, Judge Kathy Surratt-States sided with the company by giving it the power to impose requested wage and benefit cuts. Officials for Patriot and the union, however, continued talks and finally reached an agreement on Friday. "This represents the successful conclusion of a difficult negotiation in which both the UMWA leadership and Patriot management have invested many long days," Bennett Hatfield, Patriot's chief executive, said in a separate statement. "Both parties want to preserve jobs and protect health care benefits for retirees by keeping Patriot on track for reorganization -- and not liquidation." Patriot said it plans to file a motion with the court to authorize a new labor agreement. But the timing of that filing hasn't been determined. Phil Smith, a union spokesman, said miners would be briefed on details of the agreement this week leading up to Friday's vote. A group of retired miners who arrived in St. Louis on Monday afternoon for a rally outside of Peabody Energy's headquarters Tuesday morning said they don't yet know how the agreement might affect them. But they're not optimistic. "We're not expecting a whole lot," said Harold Price, 67, who said he takes eight pills a day for back, shoulder and injuries sustained during a 38-year career at the Wells coal preparation plant in Boone County, W.Va. While the proposal could affect health benefits for some 15,000 retirees and dependents, Price and the others won't get a vote. Just 1,800 active union employees will get to cast a ballot. If the union signs off, the agreement must then be approved by the court. And Patriot creditors will be watching closely to see if the settlement provides the union with an equity stake in the reorganized company. The Patriot proposal approved by the court in May would create a health care trust known as a voluntary employee beneficiary association, or VEBA, to fund retiree health benefits. The trust would be partially funded by providing the UMWA with a 35 percent equity interest in the reorganized company that could be sold. And whether the agreement is ultimately implemented, union officials vow to keep the pressure on Peabody, Patriot's former parent. Tuesday's rally will be the seventh in which the union has bused hundreds of miners to stage demonstrations outside the coal producer's downtown St. Louis headquarters. Wesley White, 61, worked in the coal fields for 36 years -- the last 18 at the Wells plant before the Patriot spinoff. He said the repeated demonstrations against his former employer have given union retirees a voice. "I never did work for Patriot, but Patriot's got me," he said. "If we weren't coming out here, we wouldn't have anything." Peabody, meanwhile, continues to insist Patriot was a successful standalone company whose market value more than quadrupled during the first 12 months following the 2007 spinoff, and that "unforeseen events affecting all coal producers" led to Patriot's current problems.
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