Patriot Coal Corporation (fka PCXCQ)

[marayatano]

Patriot Coal 'walks out' of talks with miners' union

3 hours ago • BY JEFFREY TOMICH [e-mail] 314-340-8320
2

The United Mine Workers of America said Patriot Coal Corp. walked out of negotiations over wage and benefit concessions Tuesday and cancelled talks set for later this week.

The negotiations follow a judge's order last month that allow the coal producer to terminate the labor contract with active union employees and cut health benefits for retirees.

The UMWA said Patriot said it will impose the labor contract and health benefit changes on July 1, setting up a showdown between the company and the union that represents a substantial portion of its workforce.

"We are disappointed by this action," UMWA President Cecil Roberts said in a statement. "We had made significant progress toward reaching an agreement that provided a workable alternative to severe terms that Patriot asked for."

The union said it agreed to more than $400 million in savings for Patriot over the life of the current labor contract, leaving the parties less than $35 million apart.

Roberts said much of the difference involves bonuses that Patriot intends to pay managers over the next few years. The bankruptcy judge also approved the bonus payments.

The planned wage and benefit cuts will be explained to union membership, who will vote later this month whether to accept the changes, he said.

The UMWA has said that workers may walk off the job at any time, without notice, if Patriot terminates the existing collective bargaining agreement.

http://www.stltoday.com/business/local/patriot-coal-walks-out-of-talks-with-miners-union/article_4ef90748-7423-5f3f-b0f2-64524911ecb9.html


PPS may continue its downward trend tomorrow. This explains the selling pressure and the dropping of the ask on the bonds.

A strike by the Union may force Patriot Coal into liquidation.

Patriot needs to hire NON-Union workers...


imo