Patriot Coal Corporation (fka PCXCQ)

[marayatano]

Patriot Coal cites progress in talks with union


1 hour ago • BY JEFFREY TOMICH [e-mail] 314-340-8320



Patriot Coal Corp. has reduced wages and benefits for thousands of active coal miners on Monday, little more than a month after receiving court approval.

But the company said the terms implemented for United Mine Workers of America members are "significantly improved" from what the court authorized as a result of continuing talks with the union.

The coal producer also said "substantial progress" has been made in negotiations with the union concerning retiree health care benefits and current health coverage is being extended for an additional two months for those retirees while meetings continue.

"Negotiations are expected to continue over the coming weeks," Patriot said in a statement. "The parties are targeting completion of a final resolution to be presented to UMWA members by the end of July.”

It's been almost a year since Creve Coeur-based Patriot filed for Chapter 11 bankruptcy, citing a deep downturn in coal markets and legacy retiree health care liabilities among the key reasons for its struggles.

The company argued during a weeklong hearing earlier this year that it needed $150 million a year in union wage and benefit concessions to avoid running out of cash early next year and to secure financing to exit bankruptcy.

On May 29, U.S. District Judge Kathy Surratt-States approved Patriot's request to terminate contracts with active union employees and cut retiree health benefits effective July 1 in an order to reduce operating costs.

The UMWA threatened to strike if Patriot imposed terms approved by the court. But for now, the union remains hopeful the parties can reach a consensual agreement.

"We continue to meet with the company in an effort to make more progress," UMWA spokesman Phil Smith said.

Many of Patriot's active union miners are on vacation during the next three weeks.

Union President Cecil Roberts is expected to meet with members after the contractual vacation period ends, probably in late July, to provide an update on the status of talks, Smith said.

A date for those meetings hasn't been determined.

www.stltoday.com/business/local/patriot-coal-cites-progress-in-talks-with-union/article_914875bb-6e89-53f2-bc37-e84f852474a9.html