CHARLESTON, W.Va. — The United Mine Workers union is taking coal companies owned by Gov. Jim Justice to court over unpaid medical benefits for retirees.
The UMWA and four specifically-named retired miners filed federal suit this week, claiming coal companies owned by the Justice family have failed to pay health and pharmaceutical costs promised under a nationwide agreement.
The United Mine Workers claims the Justice companies violated the Employee Retirement Income Security Act of 1974, affecting dozens of retired miners.
Thousands of such cases have been filed in federal court over the past decade, with fewer than 2 percent going to trial.
This one is notable as the latest demonstration of financial strain for the companies owned by West Virginia’s governor and his family, as well as for how it might ripple across state politics.
The United Mine Workers union says claims have been unpaid from 2017, the year Justice became governor, until the present.
“The suit speaks for itself,” stated Phil Smith, spokesman for the UMW. “Bluestone Coal is not complying with our collective bargaining agreement with respect to paying for retiree health care benefits.
“We are sorry that it has come to the point where we had to file this suit but we have been working for months to get them to comply to no avail.”
The lawsuit claims Justice Energy, Keystone Service Industries, Bluestone Coal, Double-Bonus Coal and Southern Coal unilaterally canceled retiree medical and prescription drug coverage this past July 1.
“Defendants provided no advance warning,” according to the lawsuit. “retirees were told by medical providers and pharmacies that their coverage was cancelled when they sought service.”
The lawsuit says partial coverage was restored July 2.
“Periodic cancellations and restorations have occurred in the past without notice or explanation,” the lawsuit states.
The Justice companies, through a spokesman, denied some aspects of the lawsuit and expressed surprise over its filing.
“The company has not cancelled medical or prescription drug benefits and has offered to work cooperatively with the UMWA to address any concerns they might have,” stated Brian Walsh of PLUS Communications, an Alexandria, Va., firm working for the Justice companies.
“So it’s surprising and disappointing to learn that the UMWA has chosen a different course. Given that the company first learned about this suit through the media they are not in a position to comment on it but look forward to a full airing of the facts and its ultimate dismissal.”
MetroNews first noticed the lawsuit while looking for updates on a separate federal filing by the Mine Health and Safety Administration about long overdue Justice Company safety penalties. The UMWA and the Justice companies commented only after MetroNews inquired.
In addition to the specific claims about healthcare obligations, the retired mine workers’ lawsuit may play a role in West Virginia politics.
The United Mine Workers endorsed Justice when he ran for governor in 2016 as a Democrat. Union leaders then described him as a proven job-creator with a track record of good-faith bargaining.
During his time in office, the governor has often been questioned about his companies’ debts.
A national Forbes article that explored those issues last spring was headlined: “The Deadbeat Billionaire: The Inside Story of How West Virginia Gov. Jim Justice Ducks Taxes and Slow-Pays His Bills.”
“Everybody should pay their obligations, and he’s no exception,” said Delegate Mike Caputo, D-Marion and a retired UMW member, after hearing about the lawsuit for the first time.
Justice, when asked about the companies’ outstanding bills, has often said everything will be paid in good time.
He often says that, despite the strain, the companies have managed to stay open and avoid bankruptcy.
“The easiest thing in the world that a lot of people did, if you’ll go back and look — coal companies — just threw up the white flag, stiffed everybody coming and going, took bankruptcy. I wouldn’t do it,” Justice said when discussing his companies’ debts during a 2018 press conference.
“And so, at the end of the day, I’ve told it and told it and told it. You won’t have to worry about my obligations. My obligations will always be fulfilled.”
Justice — whose family has interests in coal, timber, agriculture and hospitality — has long been known for his personal wealth.
He also has been a vocal supporter of West Virginia’s coal industry, pushing a tax break last month for the struggling Pleasants Power Station and signing a bill this spring to lower severance taxes on steam coal.
“You’ve never had a governor in the universe that can understand coal mining and understand the importance of you,” Justice told miners when he signed the steam coal tax cut.
The four retired miners who are specifically named in the UMW’s federal lawsuit say their healthcare needs have been delayed.
James Graham II, a retired miner from Monroe County who was covered under Justice Energy, underwent back surgery in June 2018.
“Defendants did not pay for that surgery. Further, because the bill for the surgery was unpaid, Mr. Graham was forced to delay necessary, post-surgery follow-up treatment.”
Dennis Adkins, a retired miner now living in North Carolina, was insured under Keystone Service Industries. He has had to pay out of pocket for medical treatment for chronic conditions.
Roger Wriston, a retired miner in Fayette County, was covered under Bluestone Coal but has been receiving “distressing and embarrassing calls for bills that should have been covered by his retiree benefits plan.”
His wife needs medical treatment for her back, “but has not received necessary injections because they have no confidence that the bills will be paid by the insurance company.”
David Polk, a retired miner in Wyoming County, was insured under Double-Bonus Coal. He needs medicine for an abnormal heartbeat and high cholesterol.
“Also, he has been forced to cancel doctor’s appointments because he does not have coverage for the appointment. Moreover, he cannot afford his prescription drugs.”
The UMW says those miners are examples of what other retirees are facing.
The Justice companies were a part of the National Bituminous Coal Wage Agreement of 2016, which included medical and prescription benefits for etirees, their spouses and dependents.
The companies’ agreements were effective through Dec. 31, 2021.
The UMW says the companies have failed to pay undisputed claims since at least late 2017 until now.
One attempt to resolve the situation occurred this past June 27, the UMW states, when the union mailed two identical, certified letters to the vice president for human resources for two of the Justice companies.
“Defendants did not respond to those letters and did not resolve the unpaid bills,” the UMW’s lawsuit states.
The UMW and the retired miners are asking first for an injunction to have the Justice companies resume paying for healthcare and pharmaceutical costs while the broader issues are resolved.
The lawsuit also asks for compensatory damages plus reimbursement for the medical and prescription drug bills already due.