Patriot Coal Sues Peabody, Asks Bankruptcy Court To Relieve Pension Obligations

[Sherman A1]

St. Louis-based Patriot Coal Corp. has asked the U.S. Bankruptcy Court to modify collective bargaining agreements with the United Mine Workers of America, allowing the coal company to cut health care coverage for retired miners.

Patriot was created by St. Louis-Based Peabody Energy Corp., as a stand-alone company in 2007. In creating Patriot, Peabody also transferred a hefty chunk of Peabody’s outstanding pension obligations onto Patriot’s books.

Patriot said in the filing on Thursday that the action is necessary to save more than 4,000 jobs. Patriot also seeks to change wages, benefits and work rules for existing workers in an effort to make the company more competitive.

“Our labor and retiree benefit costs have risen to levels that simply cannot be sustained given the challenges facing the Company and our industry,” Patriot’s Chief Executive Officer Bennett K. Hatfield said in a statement. "The requested cuts will save more than 4,000 jobs and health care for 23,000 employees, retirees and dependents," Hatfield said.


http://news.stlpublicradio.org/post/patriot-coal-sues-peabody-asks-bankruptcy-court-relieve-pension-obligations

[Scuba]

1. We need a new law against "Grand Theft Pension".

[snappyturtle]

2. Oh Lordy....more misery for the common man. I smell efforts to increase

profits for the deserving folks like the company big wigs and stockholders.





I haven't read the full story at the link but..........

[dixiegrrrrl]

3. Very clever move they did.

PG&E in Cal. did same thing, during the false "energy Crisis"..all debts went into the subsidiary, but all profits were sent on to PG&E.

Create subsidary, transfer present and/or future debts into subsidiary, look innocent when subsidiary is villified for employee/customer dirty tricks.