MORGANTOWN, W.Va. – Due to the COVID-19 crisis Murray Energy officials are asking a Columbus, Ohio bankruptcy court for relief from paying about $6 million per month in retiree medical expenses in order to avoid liquidation.
U.S. Senator Joe Manchin says under the Bipartisan American Miners Act of 2019 the federal government would have picked up healthcare costs of an estimated 13,000 retired coal miners when the Murray Energy bankruptcy was final later this year.
“The federal government would have absorbed these people at the end of June or the first of July 2020,”Manchin said,”They’re asking for that to be moved up to April 15, 2020, that gives them the relief they need to avoid liquidation. Murray declared bankruptcy in October, that’s what accelerated us to get that bill done by the end of last year, because we knew those people would be left with nothing.”
Of the estimated 4,900 current Murray Energy workers, 2,000 of them are represented by the United Mine Workers of America. Phil Smith, Director of Communications and Governmental Affairs for the UMWA says a new collective bargaining agreement was requested by new owner of the operation.
“It’s not going to be long before the bankruptcy judge completes the sale of Murray Energy from the current ownership to the new ownership, so it was very important to get this done before that happened,”Smith said,”The new buyer has agreed in writing to assume the terms and conditions of this contract should it be ratified.”
Smith says there was only one bidder, the first lien holder, and the sale is expected to be completed in the next 60 days.
“This tentative agreement comes at a difficult time not just for the coal industry but for our nation and our planet,” UMWA International President Cecil E. Roberts said. “Mines are either idled or only producing a limited amount of coal. Too many of our members are either laid off or not working full time. The coronavirus and the growing recession is dramatically reducing energy consumption and the demand for coal.
Details of the tentative agreement will not be released until after the UMWA members working at Murray Energy have an opportunity to review its terms and conditions and hold a ratification vote.
Since reviewing the deal with union members at the union hall is not possible due to the COVID-19 situation, Smith says members can go virtual, or get a hard copy.
“Listen to what President Roberts has to say in video that’s available for them to watch,”Smith said,”There will be materials mailed to their homes and available at the union hall for them to see.”
Smith says this is uncharted territory and union leaders are developing a revised voting procedure.
“We anticipate sometime over the next week to ten days we’ll be able to put together a voting procedure,”Smith said,”But. we’re still working with local union officers to figure out what the best to do that is.”
Reports indicate Murray is carrying $2.7 billion in debt, at least $1 billion is owed to Bain Capital Credit L.P. and Fidelity Management & Research Company.