Legal News

Patriot Coal Workers Threaten Strike
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Friday, a lawyer representing the United Mine Workers of America told the U.S. Bankruptcy Court in St. Louis that union workers would be compelled to go on strike if Patriot Coal Corp voided its contract with the union.

Fred Perillo, the attorney representing the Patriot Coal mine workers’ union told Judge Kathy Suratt-States that the union is working earnestly to reach a consensual agreement with Patriot.

However, Patriot is trying to void its contract with the union and seeking $150 million worth of labor cuts a year, while the union is threatening to go on strike. Patriot is trying to end the contract, change healthcare, lower pay rates and end pension contributions, according to records.

  
What
Where


Perillo told the court in clear words that the union stand was that if there was no contract, then there would be no work done by unionized workers.

Ben Hatfield, the CEO of Patriot said later that the comments made by the union’s attorney were poorly conceived.

Reuters reported that in an interview, the Patriot CEO said, “It’s a poor time to be throwing out threats,” referring to the comments of the union’s attorney. Hartfield said that a strike by UMWA would lead to a replay of what happened in the bankruptcy of Hostess Brands Inc, which liquidated last year after union strikes lead to heavy losses.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Patriot Coal, which went into bankruptcy in July, has proposed transferring healthcare to a voluntary employees’ beneficiary association. It has also proposed stocking the VEBA with $15 million cash and $300 million worth of profit-sharing contributions.

While aiming to cease pension contributions and cut back expenses in other areas, the company has proposed to provide the union with a 35 percent equity stake in the company, which the union may sell off to the VEBA.



However, the company maintains that without the concessions and cuts the St. Louis based company had no other option but to liquidate.

On its part, the union keeps opposing the proposal as unfair.

The bankruptcy court has to decide the matter within May 29. While companies can impose cuts to labor contracts unilaterally under bankruptcy laws, such unilateral cuts need to be sufficiently substantiated by proving they are critical for survival of the company. Further, the company also has to prove that it has exhausted options of reaching consensual solutions.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Litigation Attorney with motions experience

USA-WA-Seattle

Seattle office of our client seeks mid-level litigation attorney with 3-5 years of experience, inclu...

Apply Now

Environmental /Land Use Attorney with 2-3 years of experience

USA-CA-San Francisco

San Francisco office of our client seeks environmental /land use attorney with 2-3 years of experien...

Apply Now

Litigation Attorney with 2-5 years of insurance defense experience

USA-FL-Jacksonville

Jacksonville office of our client seeks litigation attorney with 2-5 years of previous insurance def...

Apply Now

Attorney with 5+ years of complex litigation experience

USA-MI-Detroit

Detroit office of our client seeks attorney with 5+ years of complex litigation experience. The cand...

Apply Now

RELEVANT JOBS

Experienced Insurance Defense Attorney Needed

USA-NY-Bohemia

Insurance Defense firm (with 15 attorneys in Suffolk and Mineola location), seeks attorneys with 5+ ...

Apply now

ASSOCIATE ATTORNEY

USA-TX-Houston

INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

Summary: The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Ho...

Apply now

Legal Assistant / Paralegal

USA-TX-Houston

Our  law firm is currently seeking a qualified applicant to fill the position of a Legal Assist...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top