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15 January, 2007
Last month, North American ICEM affiliate United Mine Workers of America (UMWA) negotiated the biggest pay and benefit increase in the US coal industry since 1974, winning a 32% wage and pension increase over a five-year period. The union negotiated the agreement with the Bituminous Coal Operators Association (BCOA), which will establish the pattern for several US coal operators in the coming months.
UMWA membership of some 20,000 miners ratified the contract with 80% approval on 21 December. The contract took effect for 3,200 actives miners and 10,000 retirees in six US states at Consol Energy Inc. on 1 January. It includes a 20% across-the-board wage increase over the five-year period, and a future retiree benefit hike of $10-per-month for every year of service. In addition, UMWA’s members at Consol received a US$1,000 bonus at the first of the year.
“There are no concessions, no givebacks in this agreement,” stated UMWA President Cecil Roberts. “There are only gains for current members, retirees, and their families.”
“This is the largest wage increase we’ve negotiated since 1974. Over the life of the agreement, a miner working at the top rate will see over US$32,000 more in his paycheck for just working straight time,” said Roberts in a statement. A mineworker represented by the UMWA had been averaging US$20.42-per-hour prior to this contract taking effect.
Coupled with funds guaranteed through the US government’s renewal of the federal Abandoned Mine Land Fund, the new contract assures that health care coverage, with all benefits included, will be maintained with no cost increases to workers for co-payments. Roberts said that other coal companies will be bound to the new BCOA contract’s pension provisions, since they are part of the UMWA’s 1974 Pension Fund.