In the Court of Public Opinion

I am going home to cover a big story, just like old times. When 4,000 United Mine Workers and community supporters rally Tuesday, June 4, at the Henderson County (Ky.) Courthouse, I’ll be there to write about it, to blog live in my hometown, where I began my career as a newspaper reporter.

This is a story that Henderson should know well, the fight by coal miners to earn a decent living, to survive in a dangerous job. Coal was King in Henderson for many years, along with corn, soybean and tobacco, now overtaken by marijuana, as markets change, including energy. Coal has fallen on hard times, but not nearly so much as the miners who spent decades underground mining the coal. Many struggle for breath, many live out their lives in pain.

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A retiree rallies in St. Louis. The rigors of coal mining have taken their toll on miners, but they’re fighting back through the United Mine Workers of America.

These are men and women dependent on health care benefits that St. Louis-based Peabody Energy and Arch Coal promised to deliver but dodged artfully through a corporate swindle – I don’t know how else to describe it. They have offloaded their retirement obligations to these miners onto a little company that may have been “created to fail.” Patriot Coal filed for bankruptcy last year and is getting a gentle hand from U.S. bankruptcy court, even as Peabody and Arch wash their hands, like Pontius Pilate.

And here’s the lead: Patriot Coal on Wednesday, May 28, was awarded a bankruptcy court ruling that essentially gave the company the green light to gut the contracts of 1,700 active Mine Workers and strip life-saving health care benefits from 23,000 retirees and their family members. The Mine Workers immediately announced they would appeal the ruling, and continue their fight in other courts, in Congress and in the court of public opinion.

Now the story is coming to Henderson, and I believe it is a place where miners can get a fair hearing – at least in the court of public opinion. Patriot operates the Highland mine in adjoining Union County, and until last summer operated the Freedom mine in Henderson. Patriot shut down Freedom and others in West Virginia, and many are operating well below capacity. It’s a bittersweet reminder for citizens of Henderson that coal has always held both promise and peril.

Every coalfield family has been affected by the rigors of coal mining.  They’ve all lost friends and relatives to pneumoconiosis (black lung) and other respiratory diseases, or to the dangerous life underground. Coal is part of the DNA of these communities, and UMWA health care is a lifeline to the next day. Sadly, every American is affected by the erosion of health benefits, and by courts that increasingly favor the rights of corporations over the rights of individuals.

That is where we are today, facing a judicial system that somehow gives corporations the rights of people, while diminishing the rights of real people. “As often happens under American bankruptcy law, the short-term interests of the company are valued more than the dedication and sacrifice of the workers, who actually produce the profits that make a company successful,” said Cecil Roberts, president of the United Mine Workers of America (UMWA).

Roberts has vowed to continue the fight in every forum, including in federal court in Charleston, where the UMWA has sued Peabody and Arch for violations of the Employee Retirement Income Security Act (ERISA), alleging the companies conspired to deny benefits to their longtime employees and their families.

“Peabody and Arch can decide to live up to their obligations and end this problem tomorrow,” Robert said. “But if they don’t, we will continue our litigation against them and are optimistic about our chances.”

The rally in Henderson next week continues an aggressive campaign by the Mine Workers to make the miners’ case for justice in the communities where they live, where they raised their kids and contributed to local economies often driven by coal. As a young reporter, I waded through records at the Henderson County Courthouse, tracking the trade in mineral rights, to Peabody, Reynolds and other industry heavyweights of the day.

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The Henderson County (Ky.) Courthouse, where 4,000 Mine Worker and their supporters will rally next Tuesday.

Now it’s come to this: Giant coal companies that extracted the mineral wealth of communities now discard the workers who made their fortunes on a gob pile, like they were merely the waste of the operation – a sad reflection on corporate America. But we also are witnessing the courage and the determination of the miners and their union.

While the UMWA train stops in Henderson as it searches for justice, inevitably it is on its way to Washington, D.C., where the voices of miners already are being heard.

U.S. Sen. Joe Manchin (D-W.Va.), denouncing the bankruptcy court ruling as a “travesty,” declared, “It is wrong that Peabody can set up a company such as Patriot, fill that company with its liabilities and then spin that company off for the sole purpose of avoiding its contractual and moral obligations to its workers. I don’t think bankruptcy laws were ever designed to shield corporations from their promises and responsibilities. I will continue to fight for fairness in the bankruptcy system.”

This is a fight that affects us all. Stay tuned. You will be able to follow the action in Henderson via the live blog, or watch it via livestream video here, beginning at 10 a.m. CT Tuesday, June 4.

Faith and Justice

As Mine Workers and their supporters prepare to descend on St. Louis Tuesday to again raise their voices outside the federal courthouse, they are bolstered by a new report by religious leaders that finds the miners’ battle against Peabody Energy, Arch Coal and the bastard child Patriot Coal to be right and just.

And they are heartened by their own sense of faith and hope that justice will be served – if not by the ruling by the bankruptcy judge sometime before May 29, then in the federal court in Charleston, W.Va., where the United Mine Workers of America has sued the coal companies for violating federal law, or in the U.S. Congress, where relief legislation has been introduced in both the Senate and the House.

But there are huge mountains to climb to preserve the health care coverage for coal miners and their retirees, and nobody knows that better than the union that has been fighting for the rights of these energy pioneers since 1890. It’s no secret that corporations increasingly are using the bankruptcy courts to dump retiree benefits.

“This has happened to steelworkers, airline workers, bakery workers, glass workers and now mine workers,” said Mike Caputo, a UMWA vice president and majority whip in the West Virginia House of Delegates. “Enough is enough. It’s time to take a stand.”

The stand by the Mine Workers has galvanized support not only from the labor movement, but also from consumer, civil rights, environmental and religious organizations. On April 29, at the last rally in St. Louis, UMWA President Cecil Roberts was joined in civil disobedience, and arrest, by 15 supporters that included CWA President Larry Cohen, National Consumers League Director Sally Greenberg, and Van Jones, executive director of Rebuild the Dream and a former Obama aide.

The support from the religious community has been consistent throughout the campaign, reflecting the fact that churches are the bedrock institution of mining communities throughout Appalachia and along the Ohio Valley, where Peabody and Arch have hauled away their fortunes.

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Mine Workers and their supporters bow their heads in prayer during a candlelight vigil outside the federal courthouse in St. Louis April 29.

Two of the Mine Workers interviewed by the religious groups in their report, “Schemes From the Board Room,” released May 1, are also Free Will Baptist preachers, and they portrayed the dire straits faced by their coworkers in starkly religious terms.

“The Lord may have called me to open my big mouth,” said David McCloud, who retired from a Peabody mine. “Peabody defrauded workers at their mines. They made promises they didn’t mean to keep. They oppress the poor and working people. I know we are supposed to depend on the Lord to provide, but sometimes we need to speak out and do something ourselves.”

Another miner-preacher speaking up was Elbert Collins Jr., who noted, “Ninety-five percent of our church members are miners. Thank the Lord for life and health benefits. But now we’ve come to a time of crisis.” His wife is on the wait list for cancer treatment, Collins said. “If we didn’t have a health care, the bills would overwhelm us.”

The fact-finders heard from Shirley Inman, a diminutive woman who left a well-paying job in Chicago to return home to West Virginia to work in coalmines because of the guaranteed health care benefit. She worked for Arch for nearly 30 years as an equipment operator but was forced into retirement by injuries to her spine and neck. “A cancer survivor, she is now experiencing spinal deterioration and other health problems, and relies on multiple prescriptions,” the report stated.

The rigors of coal mining has been on display at the rallies in St. Louis and Charleston, as some marchers carried oxygen equipment and others were consigned to wheel chairs as they struggled to breathe through the ravages of black lung, the scourge of coal miners. “People know that coal dust is bad, but they tend to overlook it to keep bread on the table,” Dr. Dan Doyle of the Cabin Creek (W.Va.) Health System told the fact-finders.

It’s not just mining families but entire communities that stand to lose if the courts allow Patriot to walk away from some $1.5 billion in health care liabilities, benefits promised to the miners. Brian Sanson, the UMWA Health and Retirement Fund liaison and the union’s director of research, said coalfield communities could lose $1.3 billion a year in pension and health care dollars.

“In 2012, Patriot and the UMWA Health and Retirement Funds provided health care payments that totaled over $320 million to West Virginia, $107 million to Kentucky, $58 million to Illinois and $33 million to Indiana,” Sanson told the religious fact-finding mission. “The retirees, widows and dependents do not have the financial means to pay for these benefits.” Most would be forced into personal bankruptcy or forced onto welfare rolls, he said.

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Religious Leaders for Coalfield Justice and Interfaith Worker Justice held hearings at St. Agnes Catholic Church in Charleston, W.Va., back in March, producing this report.

Of the 10,633 families receiving retiree health benefits from Patriot, 90 percent never worked a day for Patriot or Magnum, which Patriot absorbed from Arch, Sanson said. “Clearly, the primary motivation behind the Arch/Magnum transaction and the Peabody/Patriot spinoff was to avoid the liabilities to its former employees.”

The report, produced by Interfaith Worker Justice and Religious Leaders for Coalfield Justice, accuses Arch and Peabody of abandoning coalfield communities and their own families — people who have built their companies — for the sake of misguided notions of economic freedom. Quoting Psalms, the religious leaders urge people of all faiths to “stand with mine workers, their families and communities as they seek a just solution to their plight. And we invite prayers for them, as well as for owners and managers of Arch, Peabody and Patriot.”

You can read the full report here.

Meanwhile, miners continue their demonstrations to dramatize the unfairness of the scheme by the giant coal companies to steal their benefits, maintaining their faith in the U.S. justice system. They also are working to make sure that Congress gets the message. The Coalfield Accountability and Retired Employee (CARE) Act, sponsored by Sen. Jay Rockefeller in the Senate and by Rep. Nick Rahall in the House, would extend the federally guaranteed welfare and retirement system for coal miners and their dependents, in place since 1946.

The CARE Act would shore up the UMWA 1974 pension plan, undermined by the 2008 recession, and give union retirees who lose health care benefits because of company bankruptcy eligibility for the 1992 benefit plan and hold employers accountable for contributions.

For the time being, the campaign is playing out in the streets of St. Louis, but it will not stop there. Capitol Hill looms on the horizon. Federal Courts, the Congress, the President. The Mine Workers are prepared to leave no stone unturned in the search for justice. They say faith moves mountains.

If you can’t be in St. Louis tomorrow, you can follow the rally via live stream here.

Will There Be Justice?

Bankruptcy Court hearings begin Monday on Patriot Coal’s plan to effectively eliminate health care for retirees and impose severe cutbacks on pay, working conditions and benefits for active miners. Outside the courthouse in St. Louis, thousands of Mine Workers (UMWA) and their labor and community allies will call for justice.

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They will bear witness to a scam by Peabody Energy and Arch Coal to dump long-term benefit obligations on a company, Patriot, created specifically to absorb those obligations and eventually to fail. That case is being heard in another federal courthouse, in Charleston, W.Va., but it’s an essential underlying factor in this bankruptcy.

Consumer, environmental and civil rights leaders will join labor and religious leaders in demanding justice for those men and women who gave their entire working lives to the success of rich companies like Peabody and Arch, only to be dumped, and for the mining communities that are being abandoned in the process.

Joining UMWA President Cecil Roberts onstage will be Larry Cohen, president of the Communications Workers of America; Sally Greenberg, director of the National Consumers League; Van Jones, president of Rebuild the Dream; St. Louis NAACP President Adolthus Pruitt; and UNITE HERE Vice President Bob Proto. And Steve Smyth, president of the Australian mine workers, is coming halfway around the world to pledge support from down under.

Prayers will open and close the gathering, and the congregation comes together again in the evening for a candlelight prayer vigil across from the Federal Building.

It will be the Mine Workers “largest rally yet in St. Louis,” Roberts said, after four previous excursions that drew thousands of miners and supporters. Two weeks ago, the miners planted 1,000 white crosses to signify the number of miners who have died working for the coal companies, or who stand to lose their lives if their health care is taken from them.

The union is running a new 30-second TV spot in the St. Louis metropolitan area that dramatizes the importance of the fight. If the bankruptcy court can allow contractual obligations to miners and their families to be offloaded and then discarded, then no worker’s benefit is safe from corporate thievery.

The Peabody and Arch bigwigs, after listening to the crowd chants during previous demonstrations, got far out of town as the bankruptcy hearings begin, both holding annual meetings in Wyoming. But they can’t get away from the Mine Workers. A delegation was in Wright, Wyo., April 25 to demonstrate at the Arch meeting, and plan to yell even louder outside the Peabody meeting April 29.

“These companies can run, but they can’t hide,” said Jody Hogge, a retiree from Peabody Energy who traveled to Wyoming. She is president of UMWA Local 9819, and retired from Peabody Mine #10 in Pawnee, Ill., with 13 years of service as a miner when the mine closed in 1994. “They moved their meetings more than 1,000 miles from St. Louis because they don’t want people to see what they’re doing to us. They prefer to operate behind closed doors; we’re here to keep those doors open and let everyone see exactly how these corporations behave.”

You can follow the live blog from the rally at http://fairnessatpatriotnow.blogspot.com/. The event also will be live streamed, beginning at 10 a.m. Central Time at http://www.ustream.tv/channel/mineworkers. For more information, check out http://www.fairnessatpatriot.org, and show your support by “liking” the Fairness at Patriot on Facebook.

The Alligator Shoe Drops

As bankruptcy court hearings begin today in St. Louis on Patriot Coal’s petition to eliminate retiree health care and to make steep cuts in compensation for active miners, the United Mine Workers released documents showing that Patriot has paid more than $14 million in legal fees and expenses to the well-heeled New York law firm, Davis Polk and Wardwell.

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While coal miners, retirees and their widows may be threatened with loss of their livelihoods – even their lives when it comes to their critical health care – the lawyers in Gucci Gulch are living high off the hog telling Patriot how it can shed human liabilities, reward executives and hoard cash.

Senior attorneys at the law firm are billing Patriot $985 an hour, junior attorneys bill $795 an hour and paralegals bill $400 an hour for such tasks as “coordinate duplication,” “assemble and revise hearing binder,” and “prepare FedEx labels for shipment.” The firm charged $21,951.78 in meal expenses from July 2012 to January 2013.

“This is a terrible irony that attorneys making $1,000 an hour and paid more than $14 million at this point, they’re billing $22,000 for take-out food when they work late,” UMWA President Cecil Roberts told a press briefing on Monday. “And yet they want to take away health care from 97,000 people, who pay for their own food, buy their own lunches.” See more details of the filing here.

“We have people who can’t afford their medicine,” Roberts said, “people who have literally broken their backs, who have been severely injured working for Peabody Energy and Arch Coal, the companies that then dumped their obligations into a company they created to fail, Patriot Coal.”

Roberts talked about getting a call from a 93-year-old widow who’s afraid she’ll lose everything if the company is able to walk away from its retirees. “She had lost her husband, and all of her friends had passed. She said, ‘I’ve got one friend left and that’s Cecil Roberts, because you’re trying to save my health care.’ Well, I’ll never give up trying. I’ll never sign an agreement with these coal companies that takes away health care from these retirees.”

Patriot has asked the court to replace its retiree health plan with “Voluntary Employee Beneficiary Association” (VEBA), with a cash contribution of $15 million, about the same amount it has paid the lawyers thus far to shake down the former employees, and far short of what is needed. And the company also has asked the court to approve $7 million in bonuses for the genius executives that led them into bankruptcy court.

Mine Workers, retirees and their widows will be among the hundreds that gather on the streets of St. Louis today, demanding that the courts do their duty and provide justice for the miners and their families. Some will be arrested.

“We will not stop until we see that justice in our nation is for all the people, and not just the rich folks,” Roberts said. Meet one of the families whose lives are at stake here.

Fairness at Patriot

Peabody Energy today got a first taste of what promises to be an intense in-your-face confrontation with the United Mine Workers, the first day of hearings in the bankruptcy of Patriot Coal, a company Peabody spun off to offload its union operations – and pension and health care obligations for thousands of retirees and their families.

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Cecil Roberts, third from left, leads miners in singing “Amazing Grace” as they prepare to be arrested in front of Peabody headquarters in St. Louis. (Photo by Mike Elk)

United Mine Workers President Cecil Roberts led hundreds of active and retired coal miners in a rally across from the federal building where the court hearing was in session, and then in a march to Peabody headquarters where he and nine others were arrested for sitting in the street and refusing to disperse.

Most of the miners and retirees whose benefits are at risk in the bankruptcy never worked a day at Patriot, but were victims of the double-breasting practices of Peabody and Arch Coal, which also dumped its union operations on Patriot. The UMW charges that Peabody created Patriot specifically to rid itself of the legacy costs, and that Patriot was built to fail.

“What we have here is a company reneging on its promises,” Roberts said of Peabody. “We’re not going to take it. We will fight for our members and their families in the courts, in the coalfields and in the streets of St. Louis. Patriot and Peabody have a moral obligation to those who mined their coal.”

The UMW live-streamed much of the rally and march from St. Louis, and also live-blogged at the event, which had the flavor of old-fashioned mass demonstrations and street theater. Roberts vowed the union would continue to hammer away at the companies in the court of public opinion.

Before marching to Peabody headquarters, Roberts called to the stage the nine other mine workers who he said were committed to go to jail, two of whom had oxygen tanks strapped over their shoulders. One was on oxygen 24 hours a day, several had black lung disease, and one was a Vietnam veteran with Agent Orange poisoning.

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A retired miner with an oxygen tank sits handcuffed in the paddy wagon before being hauled away to jail for civil disobedience. (Photo by Mike Elk)

Roberts, who speaks with the passion and rhythm of an evangelical preacher (“Jesus was an organizer,” he declares), read from the Bible to chasten Peabody and Arch managements, urging them to pray to understand the error of their ways, and to repent. He called for a moment of silence for those in hospice “who will not see the morning come,” others with lung, heart and blood problems, “who without their medicines will not live.”

“I urge the people at Peabody to think about what they are doing to them,” he said. “We march for them, and ask God’s guidance in returning everybody to their homes and the strength to return here again, and again and again and again.”

The union had bused in the miners and retirees from the mining towns throughout southern Illinois, Indiana, Kentucky and West Virginia, where most of the Patriot mines have closed down. And it has been hammering its message about corporate greed and community abandonment in two TV ads that have been airing this month in the St. Louis area, as well as billboards in prominent areas.

For more information about the coal companies’ shakedown of miners, check out my previous blogs here, here and here.

And stay tuned. As Roberts said, the miners will be back. And they won’t back down.

King Coal and Paradise

And daddy won’t you take me back to Muhlenberg County
Down by the Green River where Paradise lay
Well, I’m sorry my son, but you’re too late in asking
Mister Peabody’s coal train has hauled it away

— John Prine, “Paradise”

Coal was King when I was growing up in western Kentucky. Grandpapa Van was a coal miner who died of lung disease, Parkinson’s and a belly full of hard living. Other friends and relatives have sacrificed their health to go underground to provide for their families.  There was always money in coal, working it or selling the rights. Or hauling it in or hauling it out over the L&N rails. Coal was the story. It fired our lives.

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Me and Papa Van in rural Henderson County, circa 1950.

As a junior reporter at the Henderson Gleaner, I’d spend hours poring over deeds at the Courthouse, jotting down longhand the transfer of mineral rights, mostly. That was the big story. Below that farmland, and stretching all the way back to the Appalachian foothills, lay the newest seams of coal, gold to energy titans like Peabody Coal and Reynolds Metal. Only years later did those rights diminish because of the high-sulfur content of the coal, and the idea of coal gasification replaced the drill. But that too was fool’s gold.

The truth is Mr. Peabody never stopped hauling away coal and wealth from the communities of western Kentucky, southern Indiana and Illinois and, of course, West Virginia, Pennsylvania and Virginia, where many seams already are tapped out.  And while hauling Paradise away, Peabody wasn’t too keen in keeping his word to the communities it lay bare, nor to the miners who dug up the company’s fortune.

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In November 2007, Peabody spun off many of its mature underground mining operations into a company called Patriot Coal Co. Patriot got all of the union-represented miners and their health and retirement liabilities, even though Peabody had signed agreements to continue paying into those funds, along with other members of the Bituminous Coal Operators Association.

Patriot later absorbed the older, unionized mines of Arch Coal Co., further extending its liabilities. As demand and the price of coal declined over the past few years, it probably was little surprise that Patriot got overextended. The company filed for bankruptcy earlier this year, leaving vulnerable the hard-won retirement and health benefits of 10,600 former miners and their families, and the jobs and benefits of 2,000 current miners.

The sheer mendacity and duplicity of Peabody Coal Company in unloading its human assets fired up the United Mine Workers and their President Cecil Roberts, who lambased the company for its double-dealing.

The union on Oct. 23 filed suit on behalf of 12,600 retirees and active workers, charging that Peabody and Arch “planned to transfer (their) employees and benefit plan obligations to Patriot for the purpose of depriving (their) employees and retired employees of their welfare and retiree benefits,” which is illegal under the Employee Retirement and Income Security Act (ERISA). That case is being heard in Charleston, W.Va.

The union also sought to have the bankruptcy trial moved to West Virginia from New York, where Patriot had set up two dummy corporations to make its case in the shadow of the nation’s financial centers, where it expected to get a better hearing without the consideration of mining families and their communities. On Nov. 27, the bankruptcy court judge ordered that the case be moved to St. Louis, a victory for the miners. As Roberts said in a statement:

“Nobody has ever mined one ounce of coal in Manhattan. Patriot Coal executives … wanted their case heard in a forum far from the coalfields. … St. Louis is where Patriot Coal is headquartered. More important, it’s the headquarters for Peabody Energy and Arch Coal.  These two companies spun off their operations to Patriot in an attempt to run away from pension and health care obligations to thousands of miners and their survivors.”

Stay tuned. This is an important story, and we need to bring it out in the open and shed light on it. Here’s the talented mailman from Maywood, Ill., reflecting on those trips to Muhlenberg County, before Mr. Peabody’s coal train hauled it away: