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Mine Workers Challenge Patriot Coal over Contract

Submitted by jhartgen@abi.org on

The union representing 2,500 active and laid-off Patriot Coal Corp. employees said the company can't make a case for rejecting its contracts with workers, Dow Jones Daily Bankruptcy Review reported today. Patriot has told the bankruptcy court that it must get out of its union contracts or it will "be forced to liquidate in a matter of weeks." The company is in the process of selling its assets and contends shaking off the union contract is essential to making the transaction work. Blackhawk Mining LLC has made an offer for some of the mines but said that it isn't willing to absorb pension obligations to workers. The United Mine Workers of America says that Blackhawk had offered to hire some workers and operate with a modified contract, but Patriot moved to end the contract completely.