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Showing blog posts tagged with Patriot Coal

Mine Workers Say Patriot Plan to Gut Contract Is Totally Unacceptable

Photo by Julie Hunter

As previously reported, the Mine Workers (UMWA) union has been saying that Patriot Coal was specifically designed to fail so that former parent company Peabody Energy Corp. could eliminate health care costs associated with former workers in their mines. Patriot was originally spun off of Peabody and was started with much of Peabody's obligations to its retired workers, but very little of Peabody's assets. UMWA argued that Patriot was using bankruptcy to get out of living up to those obligations. Now Patriot filed a motion with the bankruptcy court to create a Voluntary Employee Beneficiary Association (VEBA) to replace the existing retiree health care system. According to UMWA, the VEBA would cover only a fraction of the obligations owed to retired workers and their families.

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Peabody Protests Continue as Report Concludes Patriot Was 'Designed to Fail'

Photo courtesy Cathy Sherwin

Working families are continuing to protest the actions of Peabody Energy, which they say is trying to abandon its responsibility to pay health care costs for thousands of retirees who worked for the company. Labor and faith leaders are joining workers and retirees in a St. Louis rally at the headquarters of Peabody.

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Working Families Protest Patriot Coal's New Bonus Plan

Photo courtesy Cathy Sherwin

Patriot Coal filed a motion in the Bankruptcy Court of the Eastern District of Missouri to be allowed to pay $6 million to 120 senior executives, company managers and office personnel. The company's top six executives would receive no bonuses in the plan, but the bonuses are being condemned by working families and retirees the company is attempting to deny health care coverage.

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Follow Live Blog of the 'Fairness at Patriot' Rally

Mine Workers (UMWA) members are rallying in St. Louis today to stand up to Patriot Coal's plan to shed promised health care benefits for tens of thousands of retirees and their dependents. As previously reported, UMWA says Patriot Coal was created to fail so Peabody Energy and Arch Coal—the companies that most of the retirees actually had worked for—could get rid of their obligations to former workers. Fairness at Patriot Now will be live-blogging the rally and will march to Peabody headquarters.

You also can follow the AFL-CIO's Cathy Sherwin on Twitter to get live updates. 

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Was Patriot Coal Designed to Fail to Dump Retiree Pensions?

In July, Patriot Coal filed for Chapter 11 bankruptcy in the Southern District of New York. Among the reasons for Patriot’s financial difficulties were the huge legacy costs related to health care benefits and pensions owed to retirees and widows of former employees. The company's intended goal, it seems, according to the Mine Workers (UMWA), is to get out of obligations to the miners that worked hard for decades, often doing significant damage to their own health.

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