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201-896-4100 info@sh-law.comUnion Members Protest Patriot Coal Bankruptcy
Author: Scarinci Hollenbeck, LLC|March 8, 2013
Union Members Protest Patriot Coal Bankruptcy
Members of the United Mine Workers union launched a series of protests against the Patriot Coal company’s bankruptcy, which stands to jeopardize the pension and health benefits of thousands of workers and their families.
The protests revolved around a string of proposed benefits cuts, following a request to extend more than $6 million in bonuses to corporate executives and salaried workers. The company argues the payments should be treated as incentives under bankruptcy law to retain key employees while it undergoes bankruptcy proceedings. Patriot spokesperson Janine Orf said the salaried employees experienced significant reductions in benefits and compensation, thereby justifying the bonuses.
“Even with these plans, participating employees’ compensation opportunities will be well below their [pre-bankruptcy] historical compensation as well as market levels,” Orf said, according to the West Virginia Gazette. “Given the magnitude of the tasks ahead, Patriot cannot afford to lose these key employees.”
However, UMW president Cecil Roberts said the bonus pay proposal is “a finger in the eye” to the more than 20,000 workers and their dependents who stand to lose their benefits as a result of the bankruptcy, the news source reports.
“While Patriot is handing out cash to managers and executives, thousands of retirees and widows the company is responsible for are worried about having to choose between buying groceries or getting the prescription drugs they need to live,” Roberts told the newspaper.
The employees who stand to lose their benefits reside primarily in West Virginia, Illinois, Indiana, Kentucky and Ohio. Many of the workers – most of whom have worked in the mines for decades – noted that they developed health problems as a result of their grueling positions, and would not be able to cover their medical needs without their employer-sponsored benefits.
Union Members Protest Patriot Coal Bankruptcy
Author: Scarinci Hollenbeck, LLC
Members of the United Mine Workers union launched a series of protests against the Patriot Coal company’s bankruptcy, which stands to jeopardize the pension and health benefits of thousands of workers and their families.
The protests revolved around a string of proposed benefits cuts, following a request to extend more than $6 million in bonuses to corporate executives and salaried workers. The company argues the payments should be treated as incentives under bankruptcy law to retain key employees while it undergoes bankruptcy proceedings. Patriot spokesperson Janine Orf said the salaried employees experienced significant reductions in benefits and compensation, thereby justifying the bonuses.
“Even with these plans, participating employees’ compensation opportunities will be well below their [pre-bankruptcy] historical compensation as well as market levels,” Orf said, according to the West Virginia Gazette. “Given the magnitude of the tasks ahead, Patriot cannot afford to lose these key employees.”
However, UMW president Cecil Roberts said the bonus pay proposal is “a finger in the eye” to the more than 20,000 workers and their dependents who stand to lose their benefits as a result of the bankruptcy, the news source reports.
“While Patriot is handing out cash to managers and executives, thousands of retirees and widows the company is responsible for are worried about having to choose between buying groceries or getting the prescription drugs they need to live,” Roberts told the newspaper.
The employees who stand to lose their benefits reside primarily in West Virginia, Illinois, Indiana, Kentucky and Ohio. Many of the workers – most of whom have worked in the mines for decades – noted that they developed health problems as a result of their grueling positions, and would not be able to cover their medical needs without their employer-sponsored benefits.
