Coal Miners Lose Health Benefits

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http://www.cbsnews.com/stories/2004/08/09/national/main634985.shtml

 

Coal Miners Lose Health Benefits

 

PIKEVILLE, Ky., August 9, 2004

 

(AP) Thousands of coal miners, some sick from black

lung disease, will lose their medical coverage under

an order filed Monday by U.S. Bankruptcy Judge William

Howard.

 

The judge ruled that Horizon Natural Resources, the

nation's fourth largest coal company, does not have to

honor union contracts that guaranteed benefits for

1,000 active miners and some 2,300 retirees.

 

The order sparked an immediate outcry from the United

Mine Workers of America, which had staged massive

protests on the streets outside Howard's courtroom in

downtown Lexington.

 

“What a complete and utter travesty of justice,” said

UMWA President Cecil Roberts. “These workers did

absolutely nothing wrong. They worked hard, did what

was expected and accepted lower wages for the promise

of health care, but look where that got them. They've

been left high and dry. No health care and no job

rights.”

 

Roberts led two protests last month in Lexington,

where coal miners and their supporters called for

reforms to the nation's bankruptcy laws, which allow

companies to void contracts that provide health

insurance.

 

“It is past time for working people to start fighting

back and joining together to reform the nation's

extremely biased bankruptcy and labor laws,” Roberts

said. “As I've said often in the past several months,

the UMWA stands ready to help lead this fight.”

 

Miners had called for Howard to require Horizon to

honor the labor contracts to protect their health care

and retirement benefits. They said it was unfair that

a bankruptcy judge had the authority to allow

companies to shed medical costs and retiree benefits

to make them more attractive to potential buyers.

 

Newcoal LLC, formed by New York billionaire Wilbur L.

Ross and four other investors, and several other

companies have expressed an interest in buying

Horizon's nonunion properties. However, no one has

made an offer on any of Horizon's six union operations

in Illinois, Kentucky and West Virginia, said Jim

Morris, Horizon's vice president for business

development.

 

Morris said financial obligations related to union

contracts and the union's retirement plan made them

unattractive to potential buyers. The company's assets

are scheduled to be auctioned at 9 a.m. EDT on Aug. 17

at the Hilton Cincinnati Netherland Plaza in

Cincinnati, Ohio.

 

Horizon, posting huge financial losses and unable to

pay its creditors, filed for bankruptcy in November

2002.

 

The company's assets, valued at just less than $1

billion, are being sold in an attempt to satisfy about

$1 billion in debts and other obligations.

 

Roberts has said that the UMWA is prepared to take

whatever legal action possible to stop Horizon from

selling its properties without having to take care of

its workers and retirees.

 

Dwight Siemiaczko, a union worker at a Horizon mine in

Cannelton, W.Va., said the nation's bankruptcy laws

are out of hand.

 

I'm hopeful that what is happening to us will spark a

national movement to reform America's bankruptcy

laws,” he said. “Working people across the nation must

join this fight.”

 

Roberts said the UMWA will appeal Howard's decision to

the U.S. District Court in Lexington.

 

“I promised every Horizon worker that the UMWA would

explore every legal avenue available,” he said, “at

first, to prevent this injustice, but now to rectify

it.”

 

By Roger Alford

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