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Coal Company Said It Hopes To Avoid Strike, Will Continue Talks While Serving Customers

 

 

By Jason Morton


April 2, 2021 - Following threat to strike by the United Mine Workers of America over claims of unfair labor practices, Warrior Met Coal Inc. said it remains committed to the negotiation process and is working toward a resolution.


However, the company said it will continue to meet customer demands for its coal should a deal remain unreached and the strike, set to begin at 10:30 p.m. Thursday, proceed.


“We have and will continue to work with the UMWA to reach a resolution,” Warrior Met Coal said through Erin Vogt, director of public relations for PERITUS public relations, a Birmingham-based firm. “While we are disappointed that the UMWA has taken this extreme step to declare a strike while we continue to negotiate in good faith, we have continuity plans in place to continue meeting the demands of our key customers.”

 

Miners leave the No. 5 Mine in Brookwood in this photo from 2002.

Photo by Jason Getz, Tucscaloosa News

 


On Wednesday, union officials announced that around 1,100 coal miners in Brookwood would strike Thursday night in response to what they describe as unfair labor practices by Warrior Met Coal.


UMWA International President Cecil E. Roberts said in a news release announcing the strike that the union had filed unfair labor practice charges with the National Labor Relations Board relating to Warrior Met’s conduct during negotiations.


“Despite repeated attempts by our negotiating team to bridge the differences we have at the bargaining table, Warrior Met is going backwards,” Roberts said in the announcement. “We have always been ready to reach a fair agreement that recognizes the sacrifices our members and their families made to keep this company alive.


“At this point, Warrior Met is not.”


Through Vogt, the company maintained that its negotiation position has been meant to protect the company as well as the long-term employment of its 1,400 or so workers.


She referenced a declining coal market as well as the global coronavirus pandemic as examples of industry conditions for which Warrior Met Coal is trying to remain prepared.


Through its current policies, Warrior Met Coal continued to operate despite these factors, positioning itself as an essential industry and protecting the livelihoods of its workers, the company said.


“Throughout negotiations, our sight has remained on the future – to provide our employees with a competitive package while protecting jobs and the longevity of the company and its workforce,” Vogt said. “History has shown that we must remain vigilant in preparing for the volatility of coal prices.”


The union, however, believes its workers are being taken for granted.


Warrior Met Coal, which focuses primarily on the mining of nonthermal metallurgical coal for use in the steel production process by manufacturers in Europe, South America and Asia, was created following the 2015 bankruptcy of Jim Walter Resources and its parent company, Walter Energy.


That year, Walter Energy filed for Chapter 11 bankruptcy protection, indicating it had around $3 billion in debt with its major holdings in the state being the Jim Walter Resources underground coal mines in Brookwood as well as the rights to unmined coal fields elsewhere in Tuscaloosa and neighboring counties.


In January 2016, the Bankruptcy Court for the Northern District of Alabama approved the sale of Walter Energy to Warrior Met Coal, then operating as Coal Acquisition LLC, which was formed by Walter Energy’s senior creditors during the bankruptcy proceedings.


Warrior Met Coal went on to hire more than 1,000 miners in 18 months, including 350 hourly miners and 150 salaried employees for a new, $19 million portal facility on the company’s No. 7 mine, and last year the company announced another 350 new jobs with an investment of more than $500 million with plans to construct and develop a new underground coal mining facility off Brandon School Road in north Tuscaloosa County.


Now, Roberts accuses Warrior Met Coal of earning “tens of millions (of dollars) in profits for their Wall Street owners” with upper management pocketing bonuses of up to $35,000.


In response, workers at all of the company’s operations, including the No. 4 mine, the No. 5 preparation plant, the No. 7 mine and its Central Shop are prepared to strike starting at 10:30 p.m. Thursday.


“Our members are the reason Warrior Met even exists today,” Roberts said in announcing the strike. “They made the sacrifices to bring this company out of the bankruptcy of Walter Energy in 2016.


“These productive, professional miners at Warrior Met mined the coal that meant the company could become successful again.”


Vogt and Warrior Met Coal, however, are hopeful the strike can be avoided.


“We respect our employees’ contributions to Warrior Met Coal and will not stop working to reach an agreement,” she said. “The well-being of our team is always at the forefront. We remain committed to achieving a package that employees appreciate, that will protect the company and can provide a stable future.”