CHARLESTON, W.Va. — Questions have been raised on whether or not talks between Patriot Coal and the United Mine Workers of America have reportedly broken down with less than three weeks to go until new benefits for current workers and retirees take effect.
Officials with the UMWA said Wednesday negotiators with Patriot Coal walked out of talks earlier this week and have canceled additional negotiations that were scheduled for later this week and next week.
“We are very disappointed by this action,” said UMWA President Cecil Roberts in a statement. “We had made significant progress toward reaching an agreement that provided a workable alternative to the severe terms Patriot asked for last spring and that were approved by the bankruptcy court in St. Louis.”
Roberts claimed the UMWA had agreed to more than $400 million in contract savings and was working with the company to close a gap of roughly $30 million when the talks were halted.
However, Patriot Coal released its own statement Wednesday evening calling the press release issued by the UMWA inaccurate and distorted.
“Patriot has been working diligently with the UMWA in efforts to address their concerns about the contractual changes found to be necessary, fair and equitable by the Bankruptcy Court,” stated Patriot President and Chief Executive Officer Ben Hatfield in the release. “If our goal was to force acceptance of the court-approved contract as is, no further discussions would have been necessary, as that option has been available to us since May 29.
Hatfield continued by reassuring that “the two-day recess in negotiations that the Company requested for the current week was needed for financial analysis of UMWA demands that Patriot roll back the majority of cost relief approved by the Bankruptcy Court.”
Hatfield claimed they have offered up millions of dollars in additional contract enhancements, including wage increases, healthcare improvements, life insurance, and paid personal time off.
Last month, U.S. Bankruptcy Judge Kathy Surratt-States cleared the way for Patriot to rework the company’s benefit structures as it reorganizes under Chapter 11 bankruptcy. Without another agreement between Patriot and the UMWA, those changes are scheduled to take effect next month.
“I have consistently made it clear to management that I could not recommend to our membership that they work under those terms, because the sacrifices they require from our active and retired members are too great,” said Roberts.
Hatfield said discussions will continue, “however, we cannot support UMWA demands for changes in the court-approved contract that would increase Patriot losses by over $40 million per year in 2013, 2014, and 2015. If we did, Patriot would not emerge from bankruptcy.”
Roberts said that if talks have stopped, a vote on whether the UMWA members will work under the revised contract will be scheduled. Patriot officials and those with the UMWA have said a vote to strike would likely lead to a liquidation of the company.