Manchin, mine workers express concern about Murray Energy bankruptcy filing

CHARLESTON, W.Va. — Sen. Joe Manchin and leaders with the United Mine Workers are expressing concern about the effects of today’s announced bankruptcy of coal giant Murray Energy.

The company employs about 5,500 people, including about 2,400 active union members.

Murray’s filings in bankruptcy court showed $2.7 billion in debt and more than $8 billion in actual or potential legacy obligations under various pension and benefit plans.

The mine workers union, in a statement, suggested its agreements with Murray Energy will be victims of the bankruptcy process. The union also said the bankruptcy is likely to adversely affect the fragile standing of miners’ health care and pensions.

Manchin, in his own statements on social media and cable television, echoed the concerns about how the bankruptcy would affect a national pension agreement that has been troubled for years.

The senator introduced a bill called “Stop Looting American Pensions” and described it in a floor speech.

“The SLAP Act ensures all workers, union and non-union, are treated fairly when a company files for bankruptcy and ends the inequities of the current system,” Manchin said on the Senate floor.

Murray Energy announced its bankruptcy filing this morning after a month of hinting at reorganization.

MORE: Murray Energy declares bankruptcy, shifts founder Bob Murray to board chairman role

Murray is seeking a Chapter 11 reorganization. Murray intends to continue operations during Chapter 11 with cash on hand plus $350 million new money from the lending group, subject to bankruptcy court approval.

A statement from the United Mine Workers said agreements with the union are likely to be sacrificed during the bankruptcy process.

Cecil Roberts

“Now comes the part where workers and their families pay the price for corporate decision-making and governmental actions. Murray will file a motion in bankruptcy court to throw out its collective bargaining agreement with the union,” stated UMW President Cecil Roberts.

“It will seek to be relieved of its obligations to retirees, their dependents and widows. We have seen this sad act too many times before.”

Roberts said the filing changes nothing as far as the current terms and conditions of employment. He said retirees should also expect their health care’s continuation, at least until bankruptcy is concluded.

But Roberts expressed worry about how the bankruptcy could affect pensions over the long haul.

“This is also the final shoe to drop in the battle to preserve retired miners’ health care and pensions,” he stated.

“We have been warning Congress for more than a year that this day was coming. Let this finally be the catalyst that spurs action this year on Capitol Hill. There truly is no more time to wait.”

Manchin, who has been pushing for years to extend federal support for a national pension plan for miners, expressed similar concern today.

Manchin spoke about the situation this morning on cable news and then on MetroNews’ “Talkline.”

“If you look at what’s happening, our pensions are unraveling,” Manchin said.

He said the underfunded coal industry pension programs were predicted to default by 2022 but now that would move up to 2020. Manchin said federal funding is available through federal abandoned mine land funds.

Speaking specifically about the Murray bankruptcy filing, Manchin said, “That means the pensions are at stake.”

Josh Sword

The West Virginia AFL-CIO chimed in this morning in support of shoring up miners’ pension plans.

“As West Virginians brace for the consequences of yet another billionaire corporation taking steps to force workers to pay for years of placing profit above all else, the West Virginia AFL-CIO urges Congress to secure miners’ health care and pensions,” stated Josh Sword, president of the organization.

More News

Huntington residents eligible for free smoke alarms
The city of Huntington and the Huntington Fire Department have partnered with the West Virginia State Fire Marshal’s Office and the American Red Cross to offer free smoke alarms to residents of the Fairfield neighborhood.
May 21, 2022 - 8:45 am
Fatal accident Saturday morning in Charleston
Victim on a motorcycle was killed when his bike collided with a passenger car
May 21, 2022 - 5:06 am
Charleston man sentenced for July 2021 shooting
Christopher Neil Smith previously pleaded guilty to second-degree murder with a handgun and attempted murder with a handgun.
May 20, 2022 - 8:45 pm
Arrests made in Westover drug investigation
Meth and fentanyl seized.
May 20, 2022 - 6:55 pm