MORGANTOWN, W.Va. — Murray Energy and the United Mine Workers of America have reached a tentative deal as the company remains in bankruptcy court and coal mining has slowed down because of the coronavirus.
The agreement also comes as Murray Energy is asking a federal bankruptcy court based in Columbus, Ohio for relief from paying $6 million a month in retiree medical expenses.
Murray Energy is $2.7 billion in debt, in which $1 billion is owed to financial firms.
Details about the agreement will not be released until after union members have an opportunity to review the deal and hold a ratification vote.
Phil Smith, the union’s director of communications and governmental affairs, said members will have to review the deal online or ask for a hard copy.
“We anticipate sometime over the next week to ten days we’ll be able to put together a voting procedure,” he said. “We’re still working with local union officials to figure out what the best way to do that is.”
The United Mine Workers of America represents 2,000 of Murray Energy’s 4,900 employees.
Smith noted the operation’s new owner requested the new bargaining agreement.
“It’s not going to be long before the bankruptcy judge completes the sale of Murray Energy from the current ownership to the new ownership, so it was very important to get this done before that happened,” he added. “The new buyer has agreed in writing to assume the terms and conditions of this contract should it be ratified.”
U.S. Sen. Joe Manchin, D-W.Va., said Thursday he is fortunate the Senate included the Bipartisan American Miners Act in December’s spending package.
“We knew those people would be left with nothing,” he said.
Cecil Roberts, president of the United Mine Workers of America, noted the timing of the agreement amid the international coronavirus pandemic.
“Mines are either idled or only producing a limited amount of coal. Too many of our members are either laid off or not working full time,” he said. “The coronavirus and the growing recession is dramatically reducing energy consumption and the demand for coal.”