20 June, 2011
ICEM-affiliated United Mine Workers’ of America (UMWA) members ratified a front-end loaded and pattern-setting US national coal collective agreement on 17 June. The contract with the Bituminous Coal Operators’ Association (BCOA) was ratified by 70% of miners voting at 125 UMWA local branches, and comes six months before expiry of an existing national contract.
The five-and-a-half-year agreement replaces the existing one and takes effect on 1 July. It will cover 10,000 miners and preserves the long UMWA tradition of providing excellent salaries, pension benefits, and health care coverage to US miners and retired miners.
The US$6-an-hour wage increases over the life of the contract will now serve as a national pattern in union and non-union mines across North America. More importantly, that pattern is extended to include pension benefits – including health care benefits – for tens of thousands of retired miners and for workers and retirees of many coal and energy companies outside of the BCOA.
UMWA President Cecil Roberts
“Our members will receive the largest pay increase in the 121-year history of our union,” said UMWA President Cecil Roberts. “In addition, we were able to preserve full health care benefits for active and retired members and their dependants, as well as preserve pensions for current and future retirees with no cuts in benefits.”
The national accord includes two US$1-per-hour increases in the first six months of the new agreement, on 1 July and again on 1 January, which is an average 8.2% increase over current wages. Wages will be increased by US$1-per-hour on 1 January in each successive year until 2016.
The UMWA preserved health care benefits for active and retired miners with no cuts. The agreement preserves a pension plan that sees a company-contributed US$5.50-man-hour-worked into a pension fund that ensures the benefits are paid in full.
The UMWA posted several other improvements in the proposed agreement, including pay increases for shift work, increased sickness, accident, vision and dental benefits, and better life insurance terms.
The ICEM termed the new collective accord exemplary on several fronts. “This contract again is verification of the tremendous power that UMWA holds for a social America,” said General Secretary Manfred Warda. “It deserves attention and wide applause.”