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Coal Miners’ Fund Set For Deep Cuts As Black Lung Epidemic Grows

Source: National Public Radio

A new government report says that the federal black lung trust fund that helps sick and dying coal miners pay living and medical expenses could incur a $15 billion deficit in the next 30 years. That’s if a congressionally mandated funding cut occurs as planned at the end of the year.

The cut in the funding formula comes as NPR has reported and government researchers have confirmed an epidemic of the most advanced stages of black lung, along with unprecedented clusters of the disease in the central Appalachian states of Kentucky, Virginia and West Virginia.

The report from the Government Accountability Office (GAO) reviewed the viability of the federal Black Lung Disability Trust Fund, which paid out $184 million in benefits in FY 2017 to 25,700 coal miners suffering from the fatal mine dust disease and their dependents.

A tax on coal companies supports the fund, but that tax is set for a 55 percent cut at the end of 2018, even as the fund’s debt exceeds $4.3 billion and demand for benefits is expected to grow.

“You have to address the fact that the serious forms of black lung appear to be increasing and that may put even more strain on the trust fund,” says Rep. Bobby Scott (D-Va.), the ranking Democrat on the House Committee on Education and the Workforce.

“The last thing you want to do … is to reduce the revenue,” adds Scott, who requested the GAO report. “That will inevitably … put pressure on the idea that we should reduce the little benefits that they have.”

Miners with certified cases of black lung receive $650 to $1300 a month for living expenses. They also receive medical care directly related to their disease, which averaged $6,980 per miner last year.

“We’re dying off like crazy right now,” says Sheralin Greene, 57, who mined coal underground for 20 years in Harlan County, Ky. Black lung has sapped her ability to walk around her small farm, do chores at home, or even sleep, without paralyzing coughing fits that last 15 minutes or more. She receives payments and medical care from the federal trust fund.

“It’s a terrible disease,” Greene says, as tears glaze her eyes. “It affects your heart. It affects your family, your livelihood and everything.”

At the current rate, the coal tax collects more than enough money to cover miners’ benefits – $450 million in FY 2017. But that wasn’t always the case. The fund had to borrow money to pay for benefits in the past, and that, plus interest on the loans, has put the fund deep in debt.

The only projection in the GAO report that results in zero debt, avoids borrowing more money for the fund decades into the future, and continues to pay benefits, requires a 25 percent spike in the coal tax, instead of cutting it as planned.

Increasing the tax or even leaving the current rate in place would burden the coal industry, says Bruce Watzman, an executive at the National Mining Association.

“The competition among fuels for electric generation is intense and a couple cents a kilowatt hour makes a difference in the fuel source that’s generating the electricity,” Watzman adds.

Watzman favors congressional action that forgives some or all of the fund’s debt. But even with full debt forgiveness, the GAO still projects a deficit of $2.3 billion in 2050.

Forgiving the debt also shifts the costs of the black lung benefits program from coal companies to taxpayers, according to Treasury officials who were consulted by the GAO. They “noted that the costs associated with forgiving Trust Fund interest or debt would be borne by the general taxpayer since Treasury borrows from taxpayers to lend to the Trust Fund as needed,” the report says.

“Coal operators caused this problem, and they are the ones who should be responsible for funding the compensation these workers receive,” says Cecil Roberts, international president of the United Mine Workers of America.

Coal companies buy insurance or self-insure for black lung and are the first held responsible for payment when miners are awarded benefits. But industry bankruptcies and the failure to secure enough insurance had mining companies paying just 25 percent of black lung benefits in FY 2017. The Trust Fund, which kicks in when coal companies can’t pay, paid 64 percent.

The GAO’s projections do not include the recent studies showing record-high rates of Progressive Massive Fibrosis, the advanced stage of black lung, along with an increase in lung transplants due to black lung. A recent study by the National Institute for Occupational Safety and Health (NIOSH) noted that lung transplants cost on average $1 million each and the rate of transplants for miners with black lung has tripled.

“It’s not our fault that we got this disease,” says former miner Sheralin Greene. “We did keep the lights on … We were just trying to help America … They better take care of the coal miners.”

Written by: Howard Berkes

Joint Select Committee on Multiemployer Pensions holds another hearing

The Joint Select Committee on the Solvency of Multiemployer Pension Plans held a public hearing on May 17, this time focusing on the Pension Benefit Guaranty Corporation (PBGC) and its funding problems. Dr. Thomas Reeder, the outgoing PBGC Director, was the only witness at the hearing.

The PBGC was established by Congress in the 1970s to act as a backstop if pension plans were to become insolvent. Beneficiaries in plans that do become insolvent are supposed to receive a reduced benefit from the PBGC. Beneficiaries in some plans that have been taken over by the PBGC have seen their pensions cut by as much as 70%, although those are extreme cases.

Reeder testified that the PBGC’s Multiemployer Pension program is significantly underfunded and does not have the resources to survive if large pension funds like the UMWA 1974 Pension Plan or the Teamsters Central States plan would become insolvent and become the responsibility of the PBGC. There are some proposals under consideration by Congress that would provide additional funding to the PBGC, but those proposals alone will not preserve the UMWA 1974 Pension Plan.

“The solution to this crisis can’t be just propping up the PBGC without taking any action to insure the solvency of pension plans like the 1974 Plan,” President Roberts said. “The only way to preserve those plans is to put money into them in the form of direct payments or loans. That is what the Joint Select Committee needs to be concentrating on, not a half-way solution that will lead to cuts in benefits our retirees have earned.”

Sherrod Brown on protecting pensions: ‘This is not a handout’

Source: The Columbus Dispatch

Pension checks are declining, leaving thousands of Ohioans grappling with how to make ends meet as their retirement funds no longer pay the bills.

In a room full of retired laborers at the Teamsters Local 413 union hall on Monday, U.S. Sen. Sherrod Brown, D-Ohio, said the special joint Senate and House committee that he co-chairs is coming up with a plan to fix the dwindling pensions that many such retirees rely on.

Brown reiterated that his proposal, under which the Treasury would sell bonds and make 30-year low-interest loans to the struggling multiemployer pension plans in an attempt to make them financially sound, is not a government bailout.

“This is not a handout,” Brown said to a room of roughly 100 Teamsters. “Everybody in this room gave up wages 20, 30, 40 years ago … You gave up money then to put money aside for the future.”

Now, that money that so many put away is in jeopardy.

The Wall Street and economic collapse in 2007-08 that bankrupted several companies severely diminished some pension funds, affecting more than 1.3 million Americans and roughly 60,000 Ohioans.

“We know what happens if we don’t solve this. A whole lot of you lose a whole lot of pension money that you have earned, that you deserve, and that you were promised,” Brown said.

The Pension Benefit Guaranty Corp. is the only thing keeping many pensions afloat. It is the arm of the federal government that insures pension plans. Brown said the government, and the retirees, can no longer merely rely on the guarantee. A collapse of the PBGC would jeopardize pensions everywhere and the economy, Brown said.

“I heard the PBGC director say, ‘If we don’t do something, there are serious problems with PBGC overall,’” Brown said. “That’s going to undermine pensions across the board.”

John Fowler, a retired diesel mechanic from Detroit, has seen his pension check slashed from $3,400 to less than $1,000, and he said that if the PBGC collapses, it could shrink further.

“Like everyone else here, I made life changes relying on this pension,” Fowler said. “I never thought that after working so many years, Social Security is going to be the only thing I get because my pension will go down under $100.”

The Joint Select Committee on the Solvency of Multiemployer Pension Plans, which Brown co-chairs with Sen. Orrin Hatch, R-Utah, comprises eight Republicans and eight Democrats. For the proposal to go before the full House and Senate for votes, it needs the approval of five committee members from each party, not just a simple majority. Ohio’s Republican senator, Rob Portman, also serves on the committee.

Brown said a vote on the proposal, titled the Butch Lewis Act, is scheduled after the November election, most likely in early December.

By Owen Daugherty

Union Tips for U.S. Trips: Union Monuments

Source: Union Plus

 

Across the nation, there are great monuments to the labor union legacy, and some may even be closer than you realize. Add these sites to your travel itinerary to put a union twist on your summer plans.

Check out this list of union sites around the country!

 

  1. Memphis Strike of 1968 Monument — Memphis, TN
    This gallery expands the story of the 1968 Memphis sanitation strike. Features exhibits and videos highlighting Rev. James Lawson and T.O. Jones, who courageously waged the battle on behalf of striking sanitation workers.Fun fact:The iconic “I Am a Man” signs held by strikers and the garbage truck from the original exhibition can be found here.
  2. Haymarket Martyrs Memorial — Chicago, IL 
    On May 4, 1866, what began as a peaceful rally to protest unfair working conditions erupted into violence after a man threw a bomb at police, resulting in injuries and deaths among both protesting workers and police officers. Eight union activists were wrongfully accused, convicted and hanged. This monument is a reminder of the lives lost during the fight for workers rights.Fun fact: Visitors often leave union buttons, flowers and other tokens at the base of the monument.
  3. Pullman National Monument Site — Chicago, IL 
    Chicago may be most well-known for its blustery weather, but it’s also home to a rich labor history as well. The Pullman National Monument Site honors Chicago’s labor history with a series of monuments, museums and other important landmarks — one of which was the scene of a violent strike in the 1890s.Fun fact: The Pullman District was the first model, planned industrial community in the United States.
  4. Mother Jones Monument — Union Miners’ Cemetery, Mount Olive, IL
    This 22-foot granite monument pays tribute to the achievements of Mother Jones, the woman who is credited with co-founding the Industrial Workers of the World labor union and coordinating several major strikes.Fun fact: The Mother Jones monument is also her official burial site.
  5. Ludlow Monument — Ludlow, CO
    Colorado is a major mining state, producing everything from gold to coal during its mining history. The United Mine Workers of America (UMWA) erected the monument to honor the victims of the Ludlow, CO massacre, an event in which over 1,000 striking coal miners were attacked by the Colorado National Guard and guards from the Colorado Fuel & Iron Company.Fun fact: Another mining monument, the Victor American Hastings Mine Disaster Monument, is less than two miles away from the Ludlow monument.
  6. Rosie the Riveter WWII National Historical Park — Richmond, CA
    It’s no secret that Rosie is one of most recognizable faces of the labor movement. This memorial goes beyond the iconic image to honor all the “Rosies” — working women of WWII and beyond.Fun fact: The Rosie the Riveter Trust (the nonprofit trust behind the Rosie the Riveter WWII Park) operates a free summer camp for at risk youth called Rosie’s Girls. The camp is modeled “after women like Rosie” to help young women gain courage and confidence in their abilities.
Start Your Labor History Travel Adventure

Ready to start your labor history travel adventure? Before you leave town, be sure you’re taking advantage of all the Union Plus travel benefits — including:

Gazette editorial: Don’t pitch out rules that save workers’ lives

Source: Charleston Gazette-Mail

In 1970, nearly 14,000 workers in the United States died while on the job. That year, Congress passed the Occupational Safety and Health Act.

The number of workers killed in their workplaces has been significantly reduced since the OSH Act became law. But now, worker safety might be headed in the wrong direction.

In 2016, nearly 5,200 workers died on the job, according to “Death on the Job: The Toll of Neglect,” the annual worker safety report compiled from federal statistics and released last month by the AFL-CIO. About 350 more workers died in 2016 than the previous year, according to the report.

Labor leaders worry that those numbers will continue to rise because the politicians in control of the White House and Congress have shown a disturbing eagerness to repeal worker protections already in place.

That includes rules meant to keep West Virginia coal miners from contracting black lung disease. Last December, Trump administration officials said they would re-examine a rule, put in place in 2014, that lowered legal coal dust levels in mines, closed loopholes and improved air sampling practices.

In the mining sector, which includes the oil and natural gas industries, workers died at three times the national rate in 2016, according to the AFL-CIO report.

David Zatezalo, the longtime West Virginia coal industry official who now heads the U.S. Mine Safety and Health Administration, said a few days after the report that he doesn’t have any plans to implement new mine safety rules. Zatezalo did acknowledge that “history shows that some people will not adopt safety technology until it becomes a rule.”

When business owners and their politician friends talk about the evils of government regulation, and the need to speed up permits and other necessary steps so businesses can operate unfettered, worker safety is one of the things that can be neglected.

The proposed reconsideration of the black lung rule was part of a Trump administration-wide effort to eliminate government regulations. Many West Virginia politicians eager to tie themselves to Trump have touted the initiative to get rid of such rules.

In the past, strong unions have guarded against the erosion of workplace safety and insisted that employees be protected. Decades of effort by corporations and Republican politicians to weaken organized labor has many consequences, and a more dangerous workplace might be one of them.

The report also mentioned the increasing incidence of fatal workplace violence. In 2016, 500 workers were victims of homicide at their jobs. As mass workplace shootings become more common — and as lawmakers in West Virginia and elsewhere do things like preventing private business owners from banning guns on their property — it’s not hard to see that number continuing to rise.

Older workers — those 65 and older — are 2.5 times more likely to die on the job than their younger co-workers. That’s a serious concern in a state with a higher proportion of older residents, like West Virginia. It’s also worrying because the lack of a solid health care and pension system means more and more Americans must work well into what might have been their retirement years.

Millions of Americans toil every day to feed their families and better their lives. It is reasonable for them to expect employers to make workplaces as safe as possible, and to expect governments to enforce rules for the benefit of all.

Written by: Editorial Staff

Local Union Training Conference

The 2018 Local Union contract training conference, sponsored by the UMWA’s International Contract Department, will be taught by the faculty of West Virginia University’s Institute of Labor Studies and Research.

This year’s participants will be offered three different agendas. For first year participants, steward and grievance training will incorporate labor history, steward roles and responsibilities and grievance writing and presentation. Second year attendees will be offered training on the Union at work which includes current labor issues, leadership development and Union effectiveness.

In a change this year, the third year class will join the advanced attendees for an intensive workshop addressing representation in a “right-to-work” environment which will cover legal basics and best practices in an increasingly so called “right-to-work” world.

The program, which hosted almost 80 UMWA members in 2017, is open to all Local Unions and will be held at The Resort at Glade Springs located in Daniels, W.Va., August 19th – 22nd.  Registration is $225.00 per person, which covers all instructional costs. Individuals need to make their own room reservations with Glade Springs by calling 1-877-814-7316 and identifying themselves as UMWA summer school participants to get the special rate of $83.00 (plus 12% state and local tax) per night.

For more information or to register for the 2018 program, contact Sharon Mayfield at 304-293-3324 or email SKMayfield@mail.wvu.edu. Class and hotel reservations must be made by Friday, July 6th.

Union Plus Entertainment Discounts

Union Plus Entertainment Discounts offer savings to union families on over 300,000 fun things to see and do including movies, restaurants, shopping and much more!

 

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1. Visit unionplus.abenity.com and register/login.
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• Discounts at local events unique to your area

 

And remember to download the Union Plus Deals app on Android or iPhone. No matter where you are, savings will be at your fingertips.

 

United Mine Workers of America negotiates contract as future of Westmoreland Coal becomes uncertain

Editors Note: As a result of the negotiations described below, a contract extension with a $1 per hour pay raise was reached by the parties.

Source: Kemmerer Gazette

Kemmerer coal miners and United Mine Workers of America members packed the Event Center on Friday, April 20, to hear contract negotiations between UMWA and Westmoreland leadership. 

Money, working conditions and the future of coal in Wyoming were all at the forefront when coal miners and union leaders packed into the South Lincoln Event Center on Friday, April 20, to witness collective bargaining contract negotiations between Westmoreland Coal Co. and the United Mine Workers of America (UMWA) union.

Tensions were high at the negotiations, as Westmoreland Coal Company seems to be teetering toward bankruptcy. Westmoreland Coal Company was delisted from the NASDAQ on Wednesday, April 25. Westmoreland stock prices closed at 20 cents on April 23, a huge drop from the $43.59 stock price in August 2014.

Mike Dalpiaz, the International District 22 Vice President for the United Mine Workers of America, led the collective bargaining negotiations on behalf of the union.

“These workers don’t deserve to get dragged down in this potential bankruptcy,” Dalpiaz told the Gazette. “They have nothing to do with it. They didn’t make the poor financial decisions, and the contract isn’t what broke this company.”

United Mine Workers of America district representative Richard Morgan and UMWA District Vice President Mike Dalpiaz speak with local union members at negotiations on April 20. 

On Thursday, April 26, Dalpiaz told the Gazette that the UMWA was able to extend the contract with Westmoreland for 90 more days past the original May 1 date, good news for union members and locals hoping to avoid a strike. Dalpiaz said they’re still waiting to see if and when Westmoreland Coal will file for bankruptcy. The settlement was the result of a day-long negotiation between UMWA and Westmoreland and a long UMWA local union meeting.

“We also secured a wage increase for the employees during that contract time,” Dalpiaz said.

Dalpiaz said one of the issues at stake with the contract negotiations was securing pensions and healthcare for mine employees.

“It’s all about taking care of both our active mine workers and the retirees,” Dalpiaz said. “We fight hard to protect each other.”

The Westmoreland Coal Mine in Kemmerer employs about 300 people. The news of Westmoreland Coal’s financial issues comes soon after a big announcement that they would be working with WYDOT starting in 2022 to move part of Highway 30 to access more coal for the Kemmerer mine. Most of the $30 million funding was provided in a capital construction bill passed by the Wyoming state legislature, but Westmoreland is still required to fund $7.5 million for the project.

Westmoreland Coal did not respond to multiple phone and email inquiries from the Gazette about the union contract negotiations or stock market delisting.

In the company’s quarterly report released on April 2, Gary Kohn, Westmoreland’s Chief Financial Officer, stated, “Together with our financial and legal advisers we are designing an improved capital structure for Westmoreland Coal and all of our subsidiaries. Our aim is to create a capital structure that better aligns with our cash flow and allows for an improved balance sheet. During the restructuring process, we have remained focused on safety and on providing our customers with the level of service they have come to expect from Westmoreland.”

As of press time, Westmoreland Coal Co. is considering filing for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code, as stated in their recent quarterly report.

“We’re probably going to be here all day,” Dalpiaz said. “But that’s what unions do. We are a band of brothers and sisters, and we make sure our workers get what’s fair.”

Several Kemmerer coal mine employees talked to the Gazette at the event, but didn’t wish to be named in the newspaper. They expressed their fears about what a strike or potential mine shutdown could mean for their jobs and the future of coal in a Wyoming town like Kemmerer that has depended on mining for decades.

“It’s not fair for (Westmoreland) to throw us under the bus if they go bankrupt,” one Kemmerer coal mine employee said. “We’re here to make sure we get what we need for our jobs and our families.”

Written by: Theresa Davis, Gazette Editor

Joint Pension Committee Meets to Understand Risk of Plans Collapsing

Source: WV Metro News

WASHINGTON — A congressional committee dedicated to addressing funding for multiemployer pension plans met Wednesday to understand how to protect the pensions of more than 1 million retirees.

The Joint Select Committee on the Solvency of Multiemployer Pension Plans was created as part of the February solution ending the government shutdown. The committee has until Nov. 30 to submit a report and legislation regarding how to meet financial obligations.

“A million and a half retirees are at risk of losing the security they earned at the bargaining table over a lifetime of hard work. Small businesses are at risk of collapsing if they end up on the hook for pension liability they cannot afford to pay,” Sen. Sherrod Brown, D-Ohio, said.

He co-chairs the committee with Republican Sen. Orrin Hatch of Utah.

More than 400,000 workers nationwide contributed to the Central States Pension Fund. If nothing is done to secure funding, the fund would run out of money by 2025.

“Groups as diverse as the Chamber of Commerce and labor unions and AARP are all pushing for a solution because they know what is at stake for them, their businesses, (and) their membership,” Brown also said.

Around 86,000 of the 1.5 million retirees nationwide are coal miners, of which 26,000 are West Virginians.

Sen. Joe Manchin, D-W.Va., said the United Mine Workers of America pension plan is on track to collapse in 2022, which would be the first plan to go bankrupt.

“The average pension for a miner in West Virginia — the average — $595. Most of that is for widows. The husbands are gone,” he said. “You take any amount of that away from them, they’re done. They can’t make it. I know there are some big pensions, God bless everybody. I’m dealing with necessities now.”

Lawmakers are guaranteed an expedited vote on the related legislative solution without amendments.

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