Message #20 From:
NewsBot Date: March 27, 2007 04:10:00 PM
FCL News Foundation Coal Responds To UMWA
LINTHICUM HEIGHTS, Md.--(BUSINESS WIRE)--Foundation Coal Holdings, Inc. (NYSE:FCL) responded to the strike authorization and allegations of unfair labor practices issued by United Mine Workers of America (UMWA) president, Cecil Roberts, earlier today. The statement authorizes a work stoppage to begin at Foundation Coal’s operating affiliates, Cumberland Coal Resources, LP (Cumberland), Emerald Coal Resources, LP (Emerald), and Wabash Mine Holding Co. (Wabash), at 12:01 AM on April 4, 2007.
Each of the affiliates is a separate and distinct legal entity that has owned and operated a separate mine for decades. The Cumberland and Emerald mines are large, state-of-the-art longwall operations in Pennsylvania. The Wabash mine is a continuous miner operation in Illinois in need of a significant capital infusion to upgrade its facilities.
Contrary to Roberts’ public statements, all three entities have been in negotiations with the UMWA since January 2007. Moreover, as part of the bargaining, Cumberland and Emerald notified the union in February that they were both prepared to sign the 2007 National Bituminous Coal Wage Agreement. Wabash, which lost more than $26 million in calendar year 2006, will require significant cost reductions in order to justify investing the capital necessary to operate the mine profitably. Wabash has provided the UMWA information on the pertinent economics and issues it faces.
In response to the allegations of unfair labor practices, Foundation’s senior vice president of safety and human resources, Michael R. Peelish, who is acting as bargaining agent on behalf of the three companies, stated, “The three companies have been responsive to the UMWA’s information requests, and we believe the union has the documentation necessary to continue to bargain effectively.” He added, “The companies are prepared to respond appropriately to the National Labor Relations Board regarding these allegations.”
The companies are continuing to negotiate with the UMWA this week and, according to Peelish, “are prepared to stay at the table until a mutually agreeable outcome is reached.”
Foundation Coal Holdings, Inc., through its affiliates is a major U.S. coal producer with 14 coal mines and related facilities in Pennsylvania, West Virginia, Illinois, and Wyoming. Through its subsidiaries Foundation Coal employs approximately 3,150 people and produces approximately 72 million tons annually, largely for utilities generating electricity. Foundation’s corporate offices are in Linthicum Heights, MD.
