WV MetroNews – UMWA, Patriot, and Peabody settle long dispute

WV MetroNews – UMWA, Patriot, and Peabody settle long dispute

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“Peabody has continued to fund healthcare benefits for retirees during Patriot’s bankruptcy proceedings,” said Alexander C. Schoch, Peabody Energy’s executive vice president and chief legal officer. “We are pleased to resolve the uncertainty among Patriot retirees by providing substantial funding for the newly established Voluntary Employee Beneficiary Association (VEBA). Future healthcare benefits for Patriot retirees will now be determined by managers of the new VEBA.”

Under terms of the settlement, Peabody will provide $310 million to fund the VEBA over the next four years. The agreement terminated Peabody’s contractual obligation to certain retirees of Patriot. Additionally the healthcare of those retirees will also be funded in the future by the VEBA.
Patriot will contribute $15 million into the fund next year and $60 million over the next three years. Union officials said production-based royalty payments from Patriot will also be paid into the fund.