AP Features, April 6th, 2007
Hours after workers at a coal mine near this southern Illinois community walked off the job, the corporate owner announced the mine will close.
Foundation Coal Holdings Inc. cited financial considerations Wednesday when it announced that that its affiliate, Wabash Mine Holding Co., will shutter the Wabash Mine after more than 30 years in operation.
The 250-worker mine lost more than $26 million last year and was still mired in red ink this year, the company said.
"The decision to close a mine, particularly one as long-lived as Wabash, is never easy," Wabash president Jeffrey Kukura said. "We recognize that this news is difficult for our employees and the community, but we will work toward a plan that we believe will be a positive step in easing the transition for Wabash employees."
Wabash Mine workers, backed by the United Mine Workers of America union, went on strike at 12:01 a.m. Wednesday, three days after their contract expired. Workers at Foundation Coal's Cumberland and Emerald mines near Waynesburg, Pa., also went on strike Wednesday.
United Mine Workers President Cecil Roberts called the timing of the company's announcement to close the Illinois mine "revealing," saying it "only serves to strengthen our resolve."
"We will continue to fight for every miner and family at all three mines. Closing Wabash will not change that fact," Roberts said in a statement. "This mine was likely to close whether we reached an agreement or not."
Salaried workers still would be needed at Wabash for several months to complete the closure, the company said. Employees also will get cash payments under a severance plan, six months of paid medical coverage and job-placement help, the company said.
Foundation Coal has argued that workers at all three mines should not be covered by a national contract the company worked out with the United Mine Workers in December. The three mines have different logistical needs that an across-the-board agreement would not address, company spokesman Peter Vietti said.
Roberts said the union filed unfair labor practice charges against Foundation on Monday. Talks resumed Tuesday, but a new agreement was not reached by Wednesday's 12:01 a.m. strike deadline, the union said.
One of the largest coal miners in the country, Linthicum Heights, Md.-based Foundation operates about a dozen surface and underground mines. The company had $1.47 billion in revenue and $31.41 million in net income for the 12 months ending Dec. 31, 2006.
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On the Net:
Foundation Coal Holdings Inc.: http://www.foundationcoal.com
United Mine Workers of America: http://www.umwa.org
