Tagged: Patriot Coal

Updated 6:15 p.m.

UMWA tweeted this afternoon that they and Patriot have "agreed to return to the bargaining table next week."

Original Story:

St. Louis-based Patriot Coal officials deny that the company "walked out" of talks with the United Mine Workers of America earlier this week.

The United Mine Workers of America say negotiators from St. Louis-based Patriot Coal walked out of talks Tuesday setting the stage for a possible strike.

The bankrupt company and the union were trying to come to an agreement even after a federal judge ruled in favor of a plan Patriot put forward to reduce costs.

UMWA spokesman Phil Smith says Patriot will now put that plan in effect July 1, including wage cuts for active miners and changes to health benefits for 23,000 retired miners and their families.

A federal bankruptcy judge granted a motion Wednesday allowing St. Louis-based Patriot Coal to make major changes to retirees’ health benefits.

Patriot estimated it had more than $1.6 billion in health liabilities for some 23,000 retired miners and their families.

The company said it could not emerge from bankruptcy with those obligations and is instead offering the United Mine Workers of America a 35 percent stake in a new company, as well as a healthcare trust fund for retirees.