Peabody, union settle dispute over retiree health funding : Business

Peabody, union settle dispute over retiree health funding : Business

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Hundreds of retired miners and their dependents also sent handwritten letters to the bankruptcy judge describing the hardships they faced if health benefits were discontinued or diminished as part of Patriot’s reorganization.
And the union sued Peabody and Arch in a Charleston, W.Va., federal court a year ago, seeking to force the companies to fund retiree health benefits. A judge dismissed the lawsuit last month.

Patriot and its creditors also won bankruptcy court approval to investigate Peabody and Arch to determine whether the divestitures of subsidiaries constituted a “fraudulent transfer” under bankruptcy law.

The union said the settlement with Peabody and Patriot represents a big step forward in efforts to provide health care funding for thousands of retirees.

But Roberts called on Arch Coal to “step up and meet its obligations to retirees” and said the union would “encourage the company to do so in the coming days.”

Roberts also said the settlement doesn’t provide enough funding to maintain health care for retirees in perpetuity, and the union is asking Congress to pass legislation that would provide long-term health benefits under the Coal Act.