Appeals Court Denies Peabody’s Retiree Health Care Evasion

In a victory for some 3,100 retired Mine Workers (UMWA) members and a setback for Peabody Energy and its attempt to duck its health care obligations, a U.S. Court of Appeals’ bankruptcy appellate panel todayreversed a lower court’s ruling that would have allowed Peabody to shed its responsibilities.

The retirees worked for Heritage Coal before Peabody spun it off to Patriot Coal. The UMWA says Peabody created Patriot solely for the purpose of ducking health care and other obligations for miners and retirees.

UMWA President Cecil Roberts says the court’s ruling was:

A bright ray of good news in what has been a long, dreary period for the retirees, their dependents and widows who have been desperately worried about what’s going to happen to their health care.

The union has been engaged in a Fairness at Patriot campaign to win justice and protect the pensions and health care for the workers and retirees at Patriot and to hold Peabody accountable to its obligations. Says Roberts:

Peabody has spent years trying to get rid of its obligations to the thousands of retirees who made it the richest coal company in the world. This decision foils part of that plan. And it makes us even more determined to keep fighting to make sure the company lives up to its entire obligation to these miners.

UMWA members at Patriot Coal operations in West Virginia and Kentucky last week ratified a settlement the union reached with the company that makes significant improvements in terms and conditions of employment over a federal bankruptcy judge’s order from last May. But says Roberts:

We are now able to turn our full attention to securing the lifetime health care benefits Peabody and Arch Minerals [which also was involved in the creation of Patriot] promised these retirees. If those companies thought our public effort to highlight their poor corporate citizenship was over, they will quickly find out otherwise. We’re moving into a new phase of that effort, and soon. We fully intend to hold Peabody and Arch accountable.

Visit Fairness at Patriot for more detailed information on the struggle.

Reposted from AFL-CIO NOW

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