Judge tosses UMW benefit case against Peabody, Arch

[Omaha Steve]

Source: wvgazette.com/News

By Ken Ward Jr.

CHARLESTON, W.Va. -- A federal judge has thrown out a suit brought by the United Mine Workers and a group of retired miners who are trying to preserve pension and health-care benefits for 10,000 active and retired Patriot Coal miners and their families.

U.S. District Judge Joseph R. Goodwin ruled in favor of Peabody Energy and Arch Coal after the companies sought to have the class-action suit dismissed.

The class-action lawsuit in federal court in Charleston was filed in October 2012 on behalf of the UMW and eight active and retired miners. Peabody and Arch, both based in St. Louis, were named as defendants.

The suit alleged that Peabody and Arch planned to transfer employees and benefit plan obligations to Patriot Coal "for the purposes of depriving" the employees and retirees of their benefits. The suit alleged that such a move is illegal under federal law.

FULL story at link.


Read more: http://www.wvgazette.com/News/201309270040

---

Read the ruling: https://www.documentcloud.org/documents/799817-class-action-case-ruling-september-2013.html

UMWA to appeal ruling dismissing federal lawsuit against Peabody and Arch

[TRIANGLE, VA.] United Mine Workers of America (UMWA) International
President Cecil E. Roberts issued the following statement today:

"I am very disappointed in the Court's decision to dismiss the
lawsuit we had filed under the Employee Retirement and Income Security Act
(ERISA) to get Peabody and Arch to live up to their responsibilities to
their retirees. The UMWA intends to appeal, because we believe the decision
fails to recognize the purpose of ERISA, which is to protect the benefits
employees have earned.

"Our members who are at risk of losing the retiree health care
benefits Peabody and Arch promised them clearly earned those benefits. We
will continue to fight for them in every possible venue until those benefits
are secure."

[Cooley Hurd]

1. WTF!

[Laelth]

2. ERISA is a terrible law, and Judges like this keep making it worse. n/t

-Laelth

[Veilex]

3. So, let me get this straight...

A person could hire on a bunch of employees with the promise of only so-so pay and benefits and amazing pensions, then create another company, and shift all pension obligations to that company, then intentionally let that company dissolve so that the first company and the owner is no longer liable for pensions because "oooh, so sorry... the company simply ran out of money to be able to pay your pension..." Utter horse shit.

[inch4progress]

4. The force is with you........lol

You understand economic manipulation in ways I just can't seem to wrap my head around.

Great post!

[heaven05]

5. rethug judge

bush appointee, rethug

[former9thward]

6. Actually, No.

He was appointed by Clinton in 1995. His son was appointed to be a U.S. Attorney by Obama. http://en.wikipedia.org/wiki/Joseph_Robert_Goodwin

[heaven05]

7. figures, although I was hoping I was right

hope his son is better than the father, but with bush the lesser as precedent, I don't have much hope.

[Wilms]

8. Perhaps there's some hope offered here.

"Here, the plaintiffs do not assert that the spin-off/sale of the subsidiaries interfered with their right to attain benefits," the judge wrote. "Instead, the plaintiffs argue their rights were interfered with because the sale/spin-off of the subsidiaries jeopardized the fund's capacity to pay their entitled benefits. However, courts have generally held that [ERISA] does not protect the financial stability of a pension fund."

In a footnote, though, Goodwin also noted that the situation could provide the miners with a cause of action under a separate law, the Coal Act, if the purpose of the moves that created Patriot was to evade benefit liability under that law. The miners and the UMW did not make such claims, however, the judge noted.

http://www.wvgazette.com/News/201309270040

[cynzke]

9. A relative got screwed on their pension

when Erwin Jacobs bought out Grain Belt Brewery in Minneapolis (197?). This relative and GB contributed to his pension and not much was accumulated into the account (around $1200 to 1500) when GB was bought out by Erwin Jacobs. Some members of upper management somehow got word and were able to close out and transfer their funds, but for the rest of the employees, the funds were frozen and placed in an account held by Met Life. The funds were unattainable to employees until retirement. Finally after thirty some years, Metlife notified my relative/employee of their impending access to/start of their retirement account. The monthly stipend varied from $8.00 to $12.00 dollars depending on whether you opt for survivor benefits. All the time this money was sitting in the MetLife account it was not accruing interest on behalf of the employees, but I am suspect somehow MetLife was accruing interest on the money.