Citizens United To Reform Bankruptcy Laws Blog

Horizon Retirees Admitted To UMWA 1993 Benefit Plan

2005-04-21T12:17:00.000-07:00

United Mine Workers of America President Cecil Roberts Hails Trustees' Vote to Admit Horizon Retirees in UMWA 1993 Benefit Plan

United Mine Workers of America (UMWA) President Cecil Roberts hailed today's vote by the UMWA 1993 Benefit Plan trustees to admit retirees from Horizon Natural Resources Inc. and their dependants to the 1993 Benefit Plan, which restored full health care benefits to nearly 2,500 people.

"This victory is the first ray of light these good people have seen in months," Roberts said.

"Their lives have been needlessly and unjustly turned upside down since last August, and this is a first step towards restoring to them the health care benefits that are rightfully theirs."

In August, 2004, a U.S. Bankruptcy Court judge terminated the health care benefits for about 5,000 active UMWA members, retirees and dependents at Horizon as part of his ruling that liquidated the company's assets. Some 2,500 retirees and dependents were eligible for coverage through the UMWA 1992 Benefit Fund. Health care benefits for the remaining 2,500 have been paid directly by the UMWA for the last six months, however those benefits will expire on April 30.

"Much more needs to be done before benefits are assured for the long term," Roberts said. "The 1993 Fund is already in a precarious financial position, and adding these beneficiaries will only add to the 1993 Fund's problems. Without quick action by CongressCthis yearCthe 1993 Fund will be in serious financial difficulty."

"Congress has the ability to help these people, and there are several ways it can do it," Roberts said. "Which ever way it chooses, Congress must act quickly to do the right thingCthe responsible thingCand give these retirees and their dependents the peace of mind they've earned."

"These people worked hard for 30, 40, even 50 years in the mines, putting their lives on the line every day to provide our nation with the energy it needs, and always believing the promise they were given by Harry Truman in 1946--reaffirmed by two United States presidents and two acts of Congress--that they would have health care when they retired," Roberts said. "A single bankruptcy judge ripped that promise away. It's incumbent on Congress to live up to America's promise to these miners, and do it now."

Unlike the CBF and 1992 Benefit Fund, which are included in the Coal Act and have mandatory employer contribution rates set by congressional statute, the 1993 Fund is solely funded by employer contributions negotiated in collective bargaining agreements. Current contribution rates are inadequate to cover benefits due to the skyrocketing cost of health care. The current contract does not expire until December, 2006.

UMWA Releases Video of Feb. 24 Rally on Massey

2005-04-11T14:21:00.000-07:00

Video from the Feb. 24 th UMWA rally at Massey's Mammoth Mines To Protest America's Bankruptcy Laws.The nine people were arrested at the protest rally, including UMWA International President Cecil Roberts.

Click Here To Watch Video (Real Player Format)

WV Legislature passes resolution in support of Reforming Bankruptcy Laws

2005-04-08T08:27:00.000-07:00

United Mine Workers of America President Cecil Roberts Hails West Virginia Legislature's Passage of Resolution In Support of Horizon Miners

Roberts Calls on Congress to Act Swiftly to Reform Bankruptcy Laws, Strengthen Coal Act

United Mine Workers of America (UMWA) International President Cecil Roberts praised the West Virginia Legislature's passage of Senate Concurrent Resolution (SCR) 58, saying that, "With this demonstration of its strong support for the active and retired Horizon miners, the Legislature is sending a clear message to Congress that quick action needs to be taken to prevent what happened to these coal miners from happening again to any other coal miners or any other working family anywhere in America."

SCR 58 calls on Congress to investigate the loss of insurance coverage for active and retired coal miners due to Horizon's bankruptcy and determine what changes need to be made to the nation's bankruptcy laws to "ensure that workers' health and pension benefits are protected."

"The UMWA has not wavered in its position that the decision of a single bankruptcy court judge should not be allowed to strip away the health care benefits the Horizon miners and retirees spent their lives working to earn," Roberts said. "It's especially galling that the judge ignored the will of Congress and paid no heed to the obligations Horizon or any successor company has to contribute to retiree health care benefits under the Coal Act. As U.S. Senator Robert C. Byrd said so eloquently last week on the floor of the United States Senate, 'One judge overturned a sixty year-old promise that had been codified by the Congress and endorsed by three presidents. It was a disgraceful, shameful act.'"

"The emotional and financial impact on these miners, retirees and their families have been and will continue to be tremendous burdens for them," Roberts said. "The UMWA has helped where we can, especially with respect to providing temporary health care coverage. But it's incumbent upon Congress to act to make sure no other group of workers ever have to suffer like the Horizon miners and their families have."

Horizon Miners affected by bankruptcy ruling receive 30 day health care extension

2005-03-29T10:22:00.000-08:00

Horizon Miners Receive Thirty Day Extension For Health Care
More than 5,000 union coal miners and retirees have received a reprieve - albeit only 30 days - in an ongoing struggle to preserve health care benefits that were lost when Horizon Natural Resources filed bankruptcy last August. (MORE >>>)

Website Update

2005-03-25T07:25:00.000-08:00

As you may already know, the official Reform Bankruptcy Laws website has been updated. Be sure to check the NEWS ROOM page for the latest news and information in this fight to stop corporate abuse of the federal bankruptcy laws.

This fight has only just begun and proof of that was last week Rep. Rick Boucher (D-VA) introducing a new bill in the House that if passed would protect coal miners benefits when their employers file bankruptcy. Also Rep. Rahall and Sen. Rockefeller have introduced similiar measures.

WWW.REFORMBANKRUPTCYLAWS.COM

ROCKEFELLER VOWS TO CONTINUE FIGHT FOR WORKERS’ AND RETIREES’ RIGHTS

2005-03-12T22:15:00.000-08:00

WASHINGTON, D.C. – After his amendment to protect the workers and retirees of bankrupt companies fell just short of passing the Senate, Senator Jay Rockefeller (D-WV) tonight pledged to continue fighting to make sure that these companies deliver on the promises they have made to their workers and retirees.
“People work their entire lives under the promise that they will receive a pension and health care from their companies,” said Rockefeller, Ranking Member of the Senate Subcommittee on Health Care. “Sadly we have seen some companies in the last few years use the bankruptcy courts to walk away from these promises.
“Our employees and retirees need better protections, and we will continue to fight to make sure that they receive these protections. Our workers and retirees should have the right to claim their fair share of the remaining assets of a company they helped build.”

“I am disappointed by tonight’s actions, but we have lost just this battle. We will win the war.”
Rockefeller’s amendment would have:

· Ensured Compensation for Retirees Who Lose Health Coverage. If an employer reduces retiree health care benefits as part of a bankruptcy plan, retirees and former workers would be entitled to cash compensation, in addition to the general unsecured claim they receive under current law. The compensation is designed to enable retirees and former workers to purchase comparable health insurance for another 18 months.

· Increased Workers’ Priority Claim Against Company Assets. The amendment would have allowed employees to recover more of the back-pay, vacation time, severance, or benefit payments that the company owes them at the time it declares bankruptcy. Current law grants an employee a priority claim of $4,925 against the company’s assets, but Rockefeller’s amendment would have increased the claim to $15,000.

UMWA Thanks Sen. Specter for efforts

2005-03-12T22:12:00.000-08:00

United Mine Workers of America International President Cecil Roberts Thanks Sen. Arlen Specter And Other Key U.S. Senators For Trying To Get Coal Act Amendment Attached To Federal Bankruptcy Legislation
Amendment Would Have Clarified Why Coal Act Supersedes Bankruptcy Judge's Decision, While Also Preventing More Coal Operators From Abusing The Bankruptcy Process

United Mine Workers of America (UMWA) International President Cecil Roberts today praised U.S. Senator Arlen Specter's (R-Pa.) effort last night to attach an amendment important to America's coal miners to a broader piece of legislation being debated to overhaul America's bankruptcy laws.

The amendment was modeled after legislation introduced earlier this year by Sen. Jay Rockefeller (D-W.Va.). It clarified how the 1992 Coal Act contained a promise to UMWA coal miners of lifetime health care benefits, and how the legislation was intended to prevent coal operators from being able to walk away from their obligation to pay for their retired miners' health care benefitsBincluding through the bankruptcy process. The need for such an amendment was created in August, 2004, when a federal bankruptcy judge's ruling allowed Horizon Natural Resources to terminate its Coal Act obligations to some 5,000 UMWA active and retired miners and their dependents. The amendment had already received strong support from several other coalfield senators, including Sen. Robert C. Byrd (D-W.Va), Sen. Richard Durbin (D-Ill.) and Sen. Barak Obama (D-Ill.).

Unfortunately, however, a few senators refused to allow the amendment on procedural grounds, prompting anger from Roberts and the UMWA.

"The UMWA is extremely frustrated and angered that this very important amendment was prevented from being attached to the federal bankruptcy overhaul," said Roberts. "The language was a natural fit for the bankruptcy legislation and should never have been tossed out for procedural reasons." He continued, "The Coal Act is a federal law, and every U.S. Senator should certainly understand that one judge's decision cannot be allowed to supersede the laws Congress creates. This amendment directly addressed that issue, and it should have been included in the larger bill. I guess some members of Congress just aren't that concerned about workers' issues as they apply to our nation's bankruptcy laws. That concerns UMWA members, and I'm quite sure it will also concern many more American workers."

Roberts thanked Sens. Specter, Rockefeller and all other supporters for their help, promising to continue working with them to get the amendment passed in some way, shape or form.

"This fight is far from over," promised Roberts. "The UMWA will continue to work closely with our friends in Congress to ensure that coal operators can no longer use the nation's bankruptcy courts to break their promises. We also believe this amendment could serve to pave the way to ensuring other working Americans are able to get a fair shake in bankruptcy court."

Mine union chief arrested in bankruptcy-law protest

2005-02-26T13:21:00.000-08:00

United Mine Workers of America President Cecil Roberts was among 10 people arrested yesterday after they blocked a highway during a protest against federal bankruptcy laws.
Traffic was backed up about a half-mile in each direction on U.S. 60 as the protesters sat on the highway while more than 100 others held a rally outside Massey Energy's Mammoth operation in the London area, said Kanawha County Sheriff's Lt. Bryan Stover. All 10 protesters were arrested without incident and were arraigned in magistrate court on a misdemeanor pedestrian violation. They were later released on personal recognizance bonds, Stover said.
In all, about 150 people attended the 90-minute rally, Stover said.
The Mammoth mine formerly was owned by Horizon Natural Resources, which sold it to Massey after declaring bankruptcy.
A federal bankruptcy judge in Kentucky granted a request by Horizon to terminate its contract with the union, allowing the company to drop health-care benefits for thousands of active and retired miners and their dependents.

Northwest Considers Freezing Pension Plan

2005-02-16T07:53:00.000-08:00

Story Here>>

More attacks on airline worker's pension plans but, what about a freeze on CEO pay and benefit options??
Let's take a look at Northwest Airlines CEO, Richard H. Anderson, lucrative pay package. I'm sure we will find a way to pay some of Northwest's bills and ease workers's worries.

Richard H. Anderson
CEO
Northwest Airlines Corporation

In 2003, Richard H. Anderson raked in $3,780,167 in total compensation including stock option grants from Northwest Airlines Corporation.

From previous years' stock option grants, the Northwest Airlines Corporation executive cashed out $13,407 in stock option exercises.

And Richard H. Anderson has another $1,632,938 in unexercised stock options from previous years.

How many workers could be supported by Richard H. Anderson's $3,780,167 pay package?

3 Nobel prize winners
11 average university presidents
9 U.S. presidents
16 AFL-CIO presidents
35 Chairmen of the Joint Chiefs of Staff
148 average workers
352 minimum-wage earners

How long would it take to equal Richard H. Anderson's total compensation for 2003?

A Nobel prize winner would have to work until 2006 A.D.
An average university president would have to work until 2014 A.D.
The President of the United States would have to work until 2012 A.D.
AFL-CIO President John Sweeney would have to work until 2019 A.D.
The Chairman of the Joint Chiefs of Staff would have to work until 2038 A.D.
An average worker would have to work until 2151 A.D.
A minimum-wage earner would have to work until 2355 A.D.

2003 Compensation
Salary $500,000
Bonus $0
Long-Term Incentive Payoffs $0
Restricted Stock Awards $1,905,750
Other Compensation $10,546
Value of Stock Option Grants* $1,363,871
Total 2003 Compensation Plus Stock Option Grants

$3,780,167
Compensation from Prior Stock Option Grants**
Value of Options Exercised in 2003 $13,407
Value of Exercisable Options $0
Value of Unexercisable Options $1,632,938
* Black Scholes present value model as reported in the company's proxy statement.
** Not counted in 2003 compensation totals.
Source: eComp Database - http://www.ecomponline.com

CEO-to-Worker Comparisons
Annual Weekly Daily Hourly Per Minute
Richard H. Anderson $3,780,167 $72,695 $14,539 $1,817 $30
Minimum-Wage Worker $10,712 $206 $41 $5.15 $0.09
Average Worker $25,501 $490 $98 $12.26 $0.20
President of the U.S.A. $400,000 $7,692 $1,538 $192 $3.21

So....I don't see a problem as to a short-term fix for some of Northwest's financial woes. But, will the right-wing bankruptcy courts see it through a worker's eyes??

I doubt it.

Mine Workers back new bankruptcy reform legislation

2005-01-28T15:49:00.000-08:00

United Mine Workers of America International President Cecil Roberts Praises Today's Re-Introduction of Legislation in the U.S. House and Senate That Would Prevent More Coal Operators From Terminating Miners' Promised Coal Act Benefits By Declaring Bankruptcy

Legislation Prompted By What Happened last Year in Federal Bankruptcy Court to Thousands of Horizon Natural Resources Coal Miners and Their Dependents

United Mine Workers of America (UMWA) International President Cecil Roberts is praising today's re-introduction in the U.S. House and U.S. Senate of legislation targeted at preventing coal operators from using federal bankruptcy laws to terminate federally promised lifetime health care benefits to the miners they employ. The legislation was prompted by an Aug. 31 ruling in federal bankruptcy court in Lexington, Ky., that allowed Horizon Natural Resources to terminate the health care benefits of some 2,000 retired miners and their dependents covered under the federal 1992 Coal Act.

Rep. Nick Rahall (D-W.Va.) and Sen. Jay Rockefeller (D-W.Va) both re-introduced their bills today, as is required when a new session of Congress commences. Each had introduced similar legislation in their respective bodies in November 2004.

"The UMWA is very thankful that our friends in Congress are once again working with us to rectify the travesty of justice that occurred last year in Lexington," said Roberts. "One of the primary reasons Congress passed the Coal Act in 1992 was to prevent coal operators like Horizon from being able to walk away from their obligation to provide lifetime health care benefits to the miners they employed-through the courts, through bankruptcy, or by whatever means. The principal focus of Rep. Rahall's and Sen. Rockefeller's legislation is that bankruptcy law-or any other law for that matter-should not be allowed to supercede the Coal Act. Hopefully, their bills will help confirm Congress's intent to the courts, which would be a huge help to our campaign to prevent any more Horizons."

Rep. Jerry Costello (D-Ill.), whose congressional district is home to many displaced and wronged Horizon miners and retirees, is already on board as a co-sponsor of the House legislation.

Roberts reminded that the UMWA continues to pay for the health care of all the displaced Horizon miners and that it will do so through March 2005.

"The UMWA is spending millions of dollars to provide our Horizon members with a temporary cushion during this very difficult time," said Roberts. "It is the right thing to do, but the fact of the matter is the Union should have never been put in this position. Congress promised miners lifetime health care benefits-as did Horizon-and it remains up to Congress to see that the funding is there to fulfill its promise."

He continued, "The UMWA is already mobilizing our members for a full-scale grassroots lobbying effort in support of the Rahall/Rockefeller legislation. We intend to remind every member of Congress-new and old, and particularly in America's coalfields-about the promise made to coal miners more than 50 years ago."

Corporate Crooks and the People They Employ.

2005-01-23T06:44:00.000-08:00

Imagine a society ruled by the corporate elite. Labor unions are illegal or non-existent and, as a worker, your working conditions are dictated by a corporate thug. You are at the mercy of someone who has never been in your position and has no respect or understanding of it. You are compensated wages that were based on the mood of the corporate thug after, your rent for your corporately owned house was paid and, your tab at the corporate store was paid. You would like to complain but, there is no one who will listen.

A situation like this has happened in America within the last 100 years. It seems that this could be a future scenario in America if the labor movement is not revitalized to it's full extent. Corporations, and the government they have bought, are assaulting America's workers with full force and, if not to make matters worse, using workers' money to settle debts and pad the wallets of corporate fat cats. Pension money is being stolen by corporations through the federal bankruptcy court system. Workers are losing retirement money, as well as, guaranteed benefits that were part of their retirements. People are having to return to the work force at ages of up to 70 years after, losing what they had worked and planned for, for years. Yet, the supporters of these corporations and the government prefer to live with the status quo, rather than, question the future of these practices.

Pensions, some valued in the billions of dollars, are used by corporations and their executives as personal funds to gamble in the stock market. In the current market coupled with a failing economy and a falling dollar, the benefit to these benefit and pension funds is minimal, if not, destructive. More accountability by the corporations and their executives needs to be put in place so that a more stringent system can implemented to stop the loss of workers money through the actions of greedy corporations and their executives.

Right now, labor unions and the AFL-CIO are considering ways to become a more formidable force with respect to worker's rights. In February the top labor leaders, through the cooperation of their members, will vote on the best way to counter the right-wing assault on America's working people...the people that are the backbone of America's greatness. Please support them.

D. L. Blankenship: Massey Energy Company CEO and President

2005-01-16T08:02:00.000-08:00

Massey Energy Company recently bought Horizon Natural Resources after Horizon filed for bankruptcy on August 31, 2004. Horizon was allowed to void itself of all union contracts, pensions and healthcare payments to it's current employees and worse yet, it's retirees. The retirees are now without pension plans and healthcare that were part of their retirement packages.

In comes Massey Energy company which buys up Horizon and then refuses to re-hire the employees who had worked for Horizon because of union affiliation. But, the purpose of this post is to look at the CEO and President of Massey Energy Company Donald L. Blankenship's wage and benefit package. In doing this, attention will be directed to what the top brass of these companies are doing to the working class in America. Also, the wage and benefit packages of these executives need more scrutiny by federal bankruptcy judges when a company files for bankruptcy as a means of reducing overhead costs and paying debts of a company in financial trouble.

Donald Blankenship CEO and President of Massey Energy company.

D. L. Blankenship
Chairman CEO and President
Massey Energy Company

In 2002, D. L. Blankenship raked in $9,387,522 in total compensation including stock option grants from Massey Energy Company.

From previous years' stock option grants, the Massey Energy Company executive cashed out $2,832,180 in stock option exercises.

And D. L. Blankenship has another $225,500 in unexercised stock options from previous years.

How many workers could be supported by D. L. Blankenship's $9,387,522 pay package?

9 Nobel prize winners
28 average university presidents
23 U.S. presidents
41 AFL-CIO presidents
86 Chairmen of the Joint Chiefs of Staff
367 average workers
876 minimum-wage earners

How long would it take to equal D. L. Blankenship's total compensation for 2002?

A Nobel prize winner would have to work until 2012 A.D.
An average university president would have to work until 2031 A.D.
The President of the United States would have to work until 2026 A.D.
AFL-CIO President John Sweeney would have to work until 2044 A.D.
The Chairman of the Joint Chiefs of Staff would have to work until 2089 A.D.
An average worker would have to work until 2370 A.D.
A minimum-wage earner would have to work until 2879 A.D.

2002 Compensation
Salary $1,000,000
Bonus $350,000
Long-Term Incentive Payoffs $0
Restricted Stock Awards $2,427,167
Other Compensation $176,553
Value of Stock Option Grants* $5,433,802
Total 2002 Compensation Plus Stock Option Grants $9,387,522

Compensation from Prior Stock Option Grants**
Value of Options Exercised in 2002 $2,832,180
Value of Exercisable Options $0
Value of Unexercisable Options $225,500
* Black Scholes present value model as reported in the company's proxy statement.
** Not counted in 2002 compensation totals.
Source: eComp Database - http://www.ecomponline.com

CEO-to-Worker Comparisons
Annual Weekly Daily Hourly Per Minute
D. L. Blankenship $9,387,522 $180,529 $36,105 $4,513 $75
Minimum-Wage Worker $10,712 $206 $41 $5.15 $0.09
Average Worker $25,501 $490 $98 $12.26 $0.20
President of the U.S.A. $400,000 $7,692 $1,538 $192 $3.21

How Many Years to Equal D. L. Blankenship's 2002 Compensation?
Minimum-Wage Worker 876 years Completion Date 2879 A.D.
Average Worker 368 years Completion Date 2371 A.D.
President of the U.S.A. 46 years Completion Date 2049 A.D.

How Many Workers Equal D. L. Blankenship's Compensation?
Minimum-Wage Worker 876 workers
Average Worker 368 workers
President of the U.S.A. 46 presidents

In 2002, D. L. Blankenship bagged $9,387,522 at Massey Energy Company. Here's what D. L. Blankenship could buy if he went on a shopping spree...

* Health insurance for 4,559 uninsured workers.

* Day care for one year for 2,311 working mothers.

* 357 average workers could upgrade their part-time
jobs with no benefits to full-time jobs with benefits.

* 8,205 workers could be enrolled in pension plans.

It is unnecessary for one individual to make this type of an income when we have a failing economy, unemployment at almost 10% and workers losing healthcare and pension plans on a daily basis. In order to get something done we need to support bills that will be presented in the US Legislature and you can do that by signing the petition of support for those bills here.

David N. Seigel, President and CEO US Airways Group

2005-01-07T08:54:00.000-08:00

When a corporation files for bankruptcy, the foremost point in assessing the corporations financial status should be the evaluation of the CEO's compensation plan.
Before employees of a corporation benefits are axed, the CEO compensation structure should be the first source of financial relief.
The US Airways Group President and CEO, David N. Siegel was compensated nearly $9 million in fiscal year 2003. His compensation package provides for some financial relief and, should be cut and the money doled out to creditors. The current method it seems places all of the responsibility on the lower tiered workers, however.
How many workers could be supported by Siegel's pay package? This may surprise you:

8 Nobel prize winners
26 average university presidents
22 U.S. presidents
39 AFL-CIO presidents
83 Chairmen of the Joint Chiefs of Staff
352 average workers
839 minimum-wage earners

All of these workers could be paid for one year at Siegel's rate of pay!!

What is more surprising is how long it would take these workers to earn in a lifetime the compensation of Siegel's annual income.

A Nobel prize winner would have to work until 2011 A.D.
An average university president would have to work until 2029 A.D.
The President of the United States would have to work until 2025 A.D.
AFL-CIO President John Sweeney would have to work until 2042 A.D.
The Chairman of the Joint Chiefs of Staff would have to work until 2086 A.D.
An average worker would have to work until 2355 A.D.
A minimum-wage earner would have to work until 2842 A.D.

How Many Years to Equal David N. Siegel's 2003 Compensation?

Minimum-Wage Worker 839 years Completion Date 2842 A.D.
Average Worker 352 years Completion Date 2355 A.D.
President of the U.S.A. 44 years Completion Date 2047 A.D.

What leads to gross negligence and waste is the very compensation that is not observed.
We must reform bankruptcy laws now, in order, to protect what we, as workers, have earned so far and what, our retirees are losing everyday.

Another union contract voided by bankruptcy

2005-01-07T01:55:00.000-08:00

US court lets US Airways void labor contract, drop pensions

US Airways Group, scrambling to avoid liquidation, said a bankruptcy judge granted its request to void the labor contract between the airline and the union representing its mechanics.

The judge also let US Airways terminate the pension plans covering its flight attendants and mechanics, as well as a frozen plan that covered 28,000 retirees. (MORE >>>)

Welcome

2004-12-14T11:17:00.000-08:00

Welcome to the new and improved Citizens United To Reform Bankruptcy Laws Blog.

We have decided to relaunch this blogsite in coordination with the start of our official website www.reformbankruptcylaws.com .

Our blogsite will be a place to for our members to post opinion pieces, news and other information as a supplement to the official website.

We also welcome comments and feedback from those who visit our blog. We want to hear your opinions about this critical issue facing working America.

Hope you enjoy.

Help Reform Federal Bankruptcy Laws

2004-12-04T16:13:00.000-08:00

On August 31, 2004 U.S Bankruptcy Judge William Howard finalized a decision allowing Horizon Natural Resources to file bankruptcy, thus voiding union contracts providing health care to 3,000 employees, including 2,300 retirees -- many of which suffer from black lung for their years of service at Horizon.
Those especially devastated by the judge's ruling are the 2,300 retirees. Most are unable to return to the workforce because of age, sickness (black lung, mining related injuries, etc.) or cannot afford to find alternative medical coverage or unable to qualify for government-assisted medical plans.

Many of Horizon's workers gave 30 to 50 years of their lives providing coal, the very resource that runs electric plants and provides light for us all and helped to build this country's industries and win World Wars. Their years of hard work were costly ones.

With one stroke of a pen, Howard took away everything they had earned during their years of service for Horizon. Now retirees are wondering how they are going to pay for their medical bills, some have seen their pensions robbed, widows and children of departed miners have been cut off, communities have been economically devastated and thousands have been left disillusioned and feeling their country's laws have let them down.

Sadly what Horizon Natural Resources did is a part of a grown trend in the United States. Corporations have found a legal way to get out of paying promised benefits, pensions, medical, honoring union contracts and debts to their creditors. These companies after filing bankruptcy do not cease to exist, instead they are given a fresh slate and continue operating, often without rehiring the workers they laid off during the bankruptcy and instead opting to hire replacements at a much lower pay.

Right now several large national airlines and other large corporations are threatening to do exactly what Horizon did and file bankruptcy. Thousands of other workers, families, communities and local economies will be devastated unless we take a stand to Reform Federal Bankruptcy Laws.

This is not simply a coal miners issue...instead its an issue facing all of working class America.

Today it was Horizon's employees and retirees...Tomorrow it could be you.

CLICK HERE TO TAKE ACTION

Horizon sale leaves miners out in the cold

2004-10-16T08:55:00.000-07:00

(FROM THE LOUISVILLE-COURIER JOURNAL)
WASHINGTON — When Kentucky coal miner Denzil Ratliff retired in July from the Star Fire mine in Bulan, Ky., he thought the mine's owner, Horizon Natural Resources Co., would continue his health insurance for the rest of his life.
But Ratliff and at least 200 other workers and former workers at Star Fire Mining lost their insurance because of the bankruptcy and sale of Ashland, Ky.-based Horizon, once the fourth-largest coal mine operator in the nation.
And while the United Mine Workers of America, the miners' labor union, provides health insurance for six months, what they and their families will do about long-term coverage is a question mark.
"I'm concerned, and when I think about it I get kind of angry, but I don't try to dwell on it," said Ratliff, a 55-year-old resident of Softshell, Ky.
He is healthy, but his wife had surgery earlier this year and she was covered under his plan.
The sudden evaporation of jobs and benefits at Star Fire underscores in microcosm the constant economic pressures in the coal industry, in which employment levels have dropped steadily for 50 years despite increased demand for coal.
And the loss of benefits at Star Fire is likely to add to the spiraling number of Americans without health insurance coverage — now 45 million, according to the U.S. Census Bureau.
Even union funds that historically have aided unemployed miners and their families are strained as more people seek help after company bankruptcies.
Congress hasn't decided what to do about it.
Sale ends benefits
Besides the Star Fire employees and retirees, about 4,800 current and former employees and family members at other union mines operated by Horizon in the Appalachian region also lost health benefits because of the company's sale, according to the union.
Star Fire, a surface coal mine, employed an average of 111 people earlier this year. Horizon closed Sept. 24, and Massey Energy, the Richmond, Va.-based company that bought Horizon, plans to keep it closed temporarily.
In addition to Star Fire, 16 other operating Horizon mines in Kentucky — none unionized — were affected by the sale. They are still open and are now owned by International Coal Group, a new company set up and chaired by New York private equity investor Wilbur Ross Jr., who bought Horizon with Massey Energy for $786 million last month.
In a recent interview, Ross said of the other mines: "We have no immediate plans to close anything.
"Our policy in everything we do is, we don't buy things to liquidate them," he said. "As long as it's economically feasible to do so, we operate them."
Phone calls to Horizon and its attorneys were not returned.
U.S. District Judge Henry R. Wilhoit Jr. had halted the sale Sept. 28 at the UMWA's request. But two days later the judge lifted the stay, and the sale was completed.
Horizon obtained court approval to end its union contracts at Star Fire, its only union property in Kentucky, and at union mines in other states. It also was permitted to end health-care benefits for current and former union miners and their families.
The union is appealing that ruling.
Union fund shrinking
Star Fire workers negotiated a contract that did not require the company to pay into a union health benefit fund to help miners and retirees whose companies go out of business.
As a result, Star Fire's UMWA members don't qualify for health benefits under the usual union funds, said Michael Buckner, the union's research director.
Ratliff is philosophical about the position Horizon has put him and his family in.
"I've still got my name, I've still got my integrity. That's something they've lost that I've not," he said.
UMWA President Cecil Roberts said some of the $786 million paid for Horizon should have been used to preserve employee benefits.
"It's just tragic, just tragic," he said in an interview.
Roberts said the union is picking up health-care benefits for about half of the 4,800 unionized Horizon workers and family members, and it may help more later.
He said Congress must re-examine bankruptcy laws to give workers' health-care coverage priority over other claims against failing companies.
Now, miners and their families have no more rights to corporate assets than suppliers that delivered rock dust to Horizon mines in recent weeks, Roberts said.
"No way that's good public policy for America," he said.
Over the years, Congress created funds to pay health-care benefits for so-called "orphan" miners — those whose companies have folded.
But, according to the union, the funds need more money to cover the people who continue to be added after bankruptcies like Horizon's.
Mining is far less labor-intensive, and more consolidated, than it once was. In 1923, there were nearly 705,000 coal miners, and by 1953 there were still nearly 300,000.
Federal numbers show that the nation's coal-mining force had dwindled to about 75,000 at the end of 2003 — including more than 22,000 workers in Kentucky and more than 8,000 in Indiana — leaving thousands without promised health-care coverage.
Kentucky's House members are co-sponsoring legislation by Reps. Nick Rahall, D-W.Va., and Barbara Cubin, R-Wyo., that would renew a coal industry tax that pays for the federal Abandoned Mine Land program, whose interest pays health-care benefits for some retired miners.
That legislation hasn't passed, but lawmakers voted recently to extend the tax until Nov. 20, providing more time to work on a longer-term solution.
The National Mining Association, a Washington-based industry group, disputed whether the AML program needs more contributions from companies to stay solvent.
Out of work and time
Darrell Keyes, president of the UMWA's Local 5890 and a miner at Star Fire, said employees learned they had worked their last day about 3:30 p.m. on Sept. 24.
Company foremen gathered employees around a trailer on the mine property and announced the closure.
Keyes, 52, has worked in coal mining for 24 years, all but three at Star Fire, which was owned by several different companies before Horizon.
"We were disgusted they (Horizon officials) didn't have enough gumption to come out and talk to us," he said.
The six months of health insurance is nice, Keyes said. "But that's just for six months," he said. "It'd really help if somebody would help us."
Massey intends to look for ways to improve Star Fire before reopening it, possibly before the end of the year, spokeswoman Katharine Kenny said.
The cancellation of health coverage for the mine's workers and retirees was "terrible," Kenny said, but she emphasized that Massey only bought the physical assets of the mine.
When the mine reopens, however, former Horizon workers can interview for jobs, which likely will be non-union, she said. Only 106 of 4,800 Massey workers are union members, she said.
"It's a very tight labor market right now, and it's very difficult to get experienced miners," Kenny said. "We would be happy to consider any and all workers."
Retired Star Fire foreman Sheldon Ritchie, 61, of Bulan, had heart surgery in August. A letter telling him his health insurance was canceled wasn't a scheduled part of his recuperation.
"I'd have recovered quicker if I didn't hear about that," he said.
As a foreman, he wasn't a member of the UMWA, so he can't seek help from the union. Ritchie is a veteran, however, and can receive some of his medicine through the Department of Veterans Affairs and some through Medicare.
But he needs to buy private health insurance for his wife. After asking around, he figures the premiums will be around $500 a month.
"It's going to be rough," Ritchie said. "By the time I pay that, I won't have any money left for nothing."

SIGN THE PETITION TO KEEP THE PROMISE TO THE COAL MINERS

Bankrupt Public Policy Severely Harms Workers And Society

2004-10-13T21:30:00.000-07:00

Op-Ed from Charleston Gazette Cecil E. RobertsInternational President, United Mine Workers of America

United Mine Workers of America (UMWA) coal miner Dwight Siemiaczko worked hard for 22 years–in often dangerous conditions–in order to earn his retirement. Over the years, he accepted less pay and lower pension benefits in exchange for the promise of lifetime health care benefits. But now, as he contemplates finally being able to retire and enjoy the fruits of his labor, his employer–Horizon Natural Resources–has asked a federal bankruptcy judge to void the terms of its negotiated contract with the UMWA, cancelling the health care benefits that Siemiaczko and thousands of others just like him were depending on to sustain them through retirement. And thanks to our nation's extremely unfair federal bankruptcy laws, if Horizon's request is granted, it will be legally permissible for this company to walk away from its promise to provide health care benefits. This is extremely bad public policy and on June 30, nearly 1,000 UMWA members and supporters rallied outside a Horizon bankruptcy hearing in Lexington, Ky., to say enough is enough. We will be back in Lexington on July 20 to send the same message.

At the June 30 Lexington rally–and at a meeting one day earlier in Benton, Ill., with nearly 300 Horizon active and retired UMWA miners and dependents–I reminded the crowds that the nation's flawed federal bankruptcy laws are not only crushing their dreams, but also the dreams of workers across the nation at companies like Enron, WorldCom and Bethlehem and Weirton Steel. The reality in America today is that people can work hard all their lives to earn a good pension, health care and other benefits but with just one stroke of a pen, a bankruptcy judge can take it all away–and the practice is alarmingly becoming more and more common. While it is true a lot of important issues will be debated during the course of the upcoming election season, near the top of every working person's list should be the need for our elected officials to reform America's bankruptcy laws–and our labor laws. If genuine reform does not happen, more and more working Americans will soon end up in the same boat as Siemiaczko and tens of thousands of others who did nothing wrong.

The UMWA recently added up the years of service provided to Horizon by the workers who stand to lose if the judge rules to void their contract. It totals somewhere around 100,000 years–but that astounding number means little in bankruptcy court. In fact, payment to a company that sold a bag of rock dust to Horizon last week will take precedence over ensuring a 30-year coal miner's health care benefits remain intact. Sad but true. Worse yet, many Horizon managers will probably be rehired by whomever purchases the mines in bankruptcy, but once their contract is voided, our UMWA-represented miners will lose their guarantee to future jobs–along with their health care benefits.

Fortunately, for a portion of Horizon's UMWA-represented coal miners, Congress passed the Coal Act in 1992, and that legislation ensures there will be no disruption to the health care benefits of those who retired before October 1994. However, for those who retired after that date–or who will be retiring–the promise of lifetime health care benefits can be terminated in bankruptcy court. And in terms of dollars and cents, the UMWA estimates that will mean an overall loss of some $500 million in benefits. That money not only aids the miners and their dependents but also the hospitals, pharmacies and other health care facilities in the small, rural communities these workers call home. I do not know if anyone has yet examined the impact of these kinds of bankruptcy judgments on our communities, but I can assure you it is not good. For this reason, mayors, local politicians, small and large business owners and community activists in every town across America should be out marching with the UMWA and others to reform our nation's bankruptcy laws. It may not be a problem in your community right now, but it could be soon.

When working Americans go to the polls this November, the UMWA is hopeful that the many recent images of corporate executives being escorted out of courtrooms in handcuffs will not be far from their minds. Horizon leaders may not be guilty of the crimes that landed some of these executives in jail, but, like them, they are guilty of running their companies into the ground financially. And while it is true that terrorism and our wars in Iraq and Afghanistan will most likely top the list of important issues facing our nation, the UMWA strongly believes that reforming our federal bankruptcy laws to limit their harmful impact on workers' benefits is equally important. In fact, it is now past time for real debate about a national health care policy. If that were to happen, these Horizon workers might end up with a federal law that would prevent them from having to suffer so much for management's mistakes.

The cruel irony in the UMWA's fight with Horizon is that Dwight Siemiaczko and all the others losing their health care benefits are the same people whose tax dollars are being used to provide our elected federal politicians–and, yes, even the judge deciding their fate–with their health care benefits. Someone please explain that injustice to me. One of our protesters sign's may have said it best, "The Rich Get Richer, and the Workers Get Screwed!" If you're a working American who agrees, please join the UMWA's fight to reform America's federal bankruptcy laws.