ryr8828
04-05-2007, 09:20 PM
Wabash Mine closes after union strikes
KEENSBURG - Within hours of 230 United Mine Workers union members going on strike at the Wabash Mine, its owner announced that the mine will close.
Foundation Coal Holdings, Inc., announced in a press release Wednesday that its affiliate, Wabash Mine Holding Co., will close the mine, located near Keensburg in Wabash County.
Collective bargaining between Wabash and the UMW had not resulted in "a mutually acceptable new labor contract," management said in the statement. Company officials also stated that the union has insisted that Wabash sign the 2007 National Bituminous Coal Wage Agreement, and Wabash does not believe it "can justify continued operations absent a different wage agreement and a large recapitalization effort."
The union went on strike at 12:01 a.m. Wednesday; the company announced its decision Wednesday morning.
The mine closure will include removing most of the underground mining machinery and other pieces of equipment. After the equipment is removed, the open slopes and shafts will be sealed. Water pumping and ventilation will be discontinued, and all active and inactive areas of the underground works will be abandoned, the company said.
"The decision to close a mine, particularly one as long-lived as Wabash, is never easy. We recognize that this news is difficult for our employees and the community, but we will work towards a plan that we believe will be a positive step in easing the transition for Wabash employees," Wabash president Jeffrey Kukura said the release.
Services of the salaried employees will be needed for several months to effect the closure. Company officials said employees will also receive cash payments under the applicable severance plan, six months of medical coverage paid for by Wabash, an opportunity under COBRA to extend medical benefits an additional 12 months, and outplacement services as they seek new positions.
The company stated that the mine, which has been in operation more than 30 years, reported more than $26 million in losses in 2006 and continued to operate at a loss in 2007. Extensive aged infrastructure, geologic challenges and soft market conditions had plagued the mine in recent years, and returning the mine to profitability would have required significant cost reductions and major capital investment, Kukura said.
In the meantime, union officials are claiming unfair labor practices.
"This is a step that we sincerely hoped we did not have to take and worked hard to avoid," Roberts said of the strike. "Unfortunately, the Foundation subsidiaries which operate these mines left us no choice. Their attempts to divide our membership and pit miner against miner and local union against local union drove us to this point."
Roberts accused Foundation Coal officials of treating each of the Illinois and Pennsylvania operations as "separate entities even though they are clearly all parts of the same employer."
According to Roberts, the contract at the three Foundation mines expired three months after expiration of the UMWA contracts with other coal companies - contracts that have long been ratified.
Roberts responded to the allegations about the financial situation at the Wabash Mine.
"Foundation Coal has known for years that Wabash Mine is an economically troubled mine," Roberts said. "They asked our members to take concessions in the previous agreement and our members did to the tune of $30,000 per member. Apparently, that was not enough. Instead of recognizing the hard work our members have done and the sacrifices they made, Foundation Coal wanted more."
Roberts said he believes the Wabash Mine was likely to close whether or not an agreement was reached.
Published on: Thursday, April 5, 2007 6:51 AM CDT
http://www.southernillinoisan.com/articles/2007/04/05/local/19845955.txt
KEENSBURG - Within hours of 230 United Mine Workers union members going on strike at the Wabash Mine, its owner announced that the mine will close.
Foundation Coal Holdings, Inc., announced in a press release Wednesday that its affiliate, Wabash Mine Holding Co., will close the mine, located near Keensburg in Wabash County.
Collective bargaining between Wabash and the UMW had not resulted in "a mutually acceptable new labor contract," management said in the statement. Company officials also stated that the union has insisted that Wabash sign the 2007 National Bituminous Coal Wage Agreement, and Wabash does not believe it "can justify continued operations absent a different wage agreement and a large recapitalization effort."
The union went on strike at 12:01 a.m. Wednesday; the company announced its decision Wednesday morning.
The mine closure will include removing most of the underground mining machinery and other pieces of equipment. After the equipment is removed, the open slopes and shafts will be sealed. Water pumping and ventilation will be discontinued, and all active and inactive areas of the underground works will be abandoned, the company said.
"The decision to close a mine, particularly one as long-lived as Wabash, is never easy. We recognize that this news is difficult for our employees and the community, but we will work towards a plan that we believe will be a positive step in easing the transition for Wabash employees," Wabash president Jeffrey Kukura said the release.
Services of the salaried employees will be needed for several months to effect the closure. Company officials said employees will also receive cash payments under the applicable severance plan, six months of medical coverage paid for by Wabash, an opportunity under COBRA to extend medical benefits an additional 12 months, and outplacement services as they seek new positions.
The company stated that the mine, which has been in operation more than 30 years, reported more than $26 million in losses in 2006 and continued to operate at a loss in 2007. Extensive aged infrastructure, geologic challenges and soft market conditions had plagued the mine in recent years, and returning the mine to profitability would have required significant cost reductions and major capital investment, Kukura said.
In the meantime, union officials are claiming unfair labor practices.
"This is a step that we sincerely hoped we did not have to take and worked hard to avoid," Roberts said of the strike. "Unfortunately, the Foundation subsidiaries which operate these mines left us no choice. Their attempts to divide our membership and pit miner against miner and local union against local union drove us to this point."
Roberts accused Foundation Coal officials of treating each of the Illinois and Pennsylvania operations as "separate entities even though they are clearly all parts of the same employer."
According to Roberts, the contract at the three Foundation mines expired three months after expiration of the UMWA contracts with other coal companies - contracts that have long been ratified.
Roberts responded to the allegations about the financial situation at the Wabash Mine.
"Foundation Coal has known for years that Wabash Mine is an economically troubled mine," Roberts said. "They asked our members to take concessions in the previous agreement and our members did to the tune of $30,000 per member. Apparently, that was not enough. Instead of recognizing the hard work our members have done and the sacrifices they made, Foundation Coal wanted more."
Roberts said he believes the Wabash Mine was likely to close whether or not an agreement was reached.
Published on: Thursday, April 5, 2007 6:51 AM CDT
http://www.southernillinoisan.com/articles/2007/04/05/local/19845955.txt