Patriot can sever Mine Workers contract, cut retiree benefits, judge rules : Business

Patriot can sever Mine Workers contract, cut retiree benefits, judge rules : Business

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ST LOUIS • A federal bankruptcy judge Wednesday gave Patriot Coal Corp. the green light to ax its union contracts and slash retiree health benefits in its bid to stay afloat.

The ruling by Judge Kathy Surratt-States, which came after a weeklong court hearing and rowdy protests in the streets of downtown St. Louis last month, will give the struggling coal company a clear upper hand in negotiations with the United Mine Workers of America, and could lead to far less-generous health insurance for about 21,000 retired mine workers and their families.

Patriot, which filed Chapter 11 bankruptcy protection in July, has said it needs $150 million in savings from the union to keep its doors open. For that it needs lower labor costs.

The company has held 15 rounds of talks with the Mine Workers since November on its existing contract, which covers 57 percent of Patriot’s 2,900 miners, and swapped five rounds of proposals and counterproposals. Now it has the right to wipe out that contract entirely, starting June 1, though the union has threatened to strike if that happens

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note:  in about two weeks, another mineworker demonstration in st louis.  will post details

soar groups on both sides of river intend to send representatives