Judge: Alpha can break union contract
RICHMOND, Va. (AP) – A federal judge ruled a coal production company can break its contract with a union in order to reorganize its finances.
The Charleston Gazette-Mail reported a judge granted the motion from Alpha Natural Resources on the United Mine Workers contract Monday.
The company filed a petition in March with U.S. Bankruptcy Court in Richmond, asking to be able to modify the company’s obligations for retiree health care benefits.
Alpha said it needed to cut costs in order to survive an ongoing decline in the coal industry.
Company lawyers said the company spent about $53 million on health care benefits for union employees last year.
UMW President Cecil Roberts said the union is still trying to work out a deal with Alpha to resolve the issue.