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When They Retire ...
Will They Have
Health Care?
Rick Reinhard photo

Photo ©2000 Rick Reinhard, Impact Visuals


Coal miners go to the mat to keep what they won back in 1946: the right to health care for themselves & their families. Like the rest of us, miners need Just Health Care. 

It took a strike and a government takeover of the coal industry, but in 1946, union coal miners finally got what they were after: a health fund, drawn from a five-cent royalty on every ton of coal workers produced.

The Truman administration, desperate to resolve the massive strike by the United Mine Workers of America and get the coal moving again, had tried to intercede and push the coal operators to an agreement. When they refused to budge, Truman issued an executive order directing the Secretary of the Interior to take possession of every bituminous coal mine in the U.S. and to negotiate with the union over the "terms and conditions of employment."

The product of those negotiations was the Krug Lewis agreement, which created a welfare and retirement fund to aid miners, their dependents, and survivors.

The United Mine Workers of America is now in the midst of a fight to hold employers to the commitments they made to workers in that 1946 agreement. The fight to preserve the "Coal Act," which guarantees health coverage for some 68,000 retired coal miners and their families, was a centerpiece of the UMWA’s national convention in March.

TOO MANY BATTLES

"There are so many betrayals like this one," comments Labor Party organizer Tony Mazzocchi, who attended the convention. "So many workers who think they have a good health care plan later find out that it’s been altered somehow or that they will lose the benefits because of some congressional or judicial action. We need to support struggles like the Mineworkers’, but we also need to fight for a health care plan that covers everyone so that we settle this issue once and for all — and stop having to fight these battles one by one."

Back in 1946, the Krug Lewis agreement committed the federal government to conduct a comprehensive survey of the state of health care in the coalfields. What this survey found came as no surprise: coal miners, almost universally afflicted with black lung disease by retirement age, had been deprived of decent medical care. Many of the hospitals and facilities, the investigators charged, were a "disgrace to the nation."

The UMWA funds established through the new agreement paid for ten regional offices throughout the coalfields to see that miners received the "highest standards of medical service at the lowest possible cost." A major new rehabilitation program was set up to help disabled miners. Ten new Miners Memorial Hospitals were established in the coalfields.

In the past half century, miners have had to go to the mat again and again to defend their unique health fund. In the 1980s, the coal companies were determined to slip out of their obligation to cover health care for retirees. A series of conflicting court decisions gave the companies lots of room to maneuver. The issue came to a head in 1989, when Pittston coal miners waged their famous strike, in part over the company’s refusal to continue participation in the UMWA funds.

As in 1946, the government intervened. As part of the Pittston agreement mediated by then Labor Secretary Elizabeth Dole, a Coal Commission was created to make recommendations about how to resolve the dispute over the UMWA funds. The Commission ultimately found that the coal companies should honor their commitments. This finding was made into law in the form of the Coal Act of 1992. Under the Act, all companies, including those that had abandoned their retirees, were required to pay for the cost of retirees’ health care.

COMPANIES DO IT AGAIN

Now the coal operators are at it again. In the years since the Coal Act was passed, says UMWA’s Bill Banig, "there have been over 60 court challenges to that legislation, questioning it from every possible constitutional angle." Fortunately, he says, the union prevailed in all but three cases. "But those three cases are starting to unravel the financing mechanism that Congress put in place to finance the retirees’ health care benefits."

A suit by what is now the National Mining Association reduced the companies’ share of health care premiums by 10 percent. Then, Eastern Enterprises successfully argued that it was now totally out of the coal business, and so had no liability. This, says Banig, "let not only Eastern off the hook, but also every other company that hadn’t signed a contract since 1974." Then, the same judge who had ruled in favor of the National Mining Association rendered another decision forcing the trustees of the Fund to rebate some $40 million. "And these three things combined actually put the funds, late last summer, into negative net assets," Banig says. It’s estimated that the funds are now running an annual deficit of about $50 million.

STAKES ARE ENORMOUS

For coal miners and their families, the stakes are enormous.

"You’re talking about a group of people whose average age is 78," says Banig. "Two-thirds of them are widows, and they planned their lives around these health benefits. Their pensions are not very large. They desperately need their health care benefit."

Last year, the union organized hard to get Congress to pass an emergency, one-time appropriation of $68 million to keep the funds solvent. More organizing helped persuade President Clinton to allocate $346 million for the UMWA funds in his 2001 budget. It’s "great news," says UMWA President Cecil Roberts.

Now it’s up to Congress — and the mobilizing power of UMWA members and allies — to ensure that this pot of money stays in the budget.

"If we’re going to keep these benefits, nobody is going to hand them to you," Roberts said at a rally of Pennsylvania coal miners last fall. "You’re going to have to fight to keep ‘em like they struck to get ‘em."

— Laura McClure

For more information on the Coal Act struggle, contact the UMWA, 8315 Lee Highway, Fairfax, VA 22031-2215; tel: 703-208-7200; or visit their website at www.umwa.org.

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