May 10, 2016

Judge Approves Alpha’s Request To Cut Worker Benefits

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Alpha Natural Resources

In court documents, Alpha writes that it is fighting to survive as the coal industry collapses. Cutting these obligations, the company argues, is necessary if it is going to restructure and get out of bankruptcy.

Here’s a key part of that process: Alpha is working to sell its strongest assets which include its Powder River Basin mines as well as a natural gas company in Pennsylvania. If these benefits and labor agreements were to be passed on with those assets, Alpha believes it would make them much harder to sell.

This request was approved after negotiations stalled between the company and the United Mine Workers of America. It will affect around 4,200 retirees, dependents, and widows.

Alpha declared bankruptcy in August. In January, a bankruptcy court judge granted the company’s request to pay up to $12 million in executive bonuses.

  • john

    How on earth were $12 million paid in bonuses to executives knowing they were going to cut the actual people that enabled that payout to be asked to take a cut?
    Not exactly a good look by any stretch of the imagination.

  • john

    Not a good look that $12 million executive bonus.