To: The United States House of Representatives and The United States Senate
Keeping a Promise to America's Coal Miners
Our nation has an obligation to provide a secure future for these workers. We urge Congress to act now and close the shortfall within their pension fund.
Why is this important?
In 1946, U.S. coal miners faced the prospect of a long strike that could have hampered our nation’s post-war economic recovery. The government took action, signing the historic Krug-Lewis agreement, which created a welfare and retirement fund in cases of sickness, permanent disability, death or retirement.
Knowing the dangers of the industry, Krug-Lewis also created a separate medical and hospital fund. Over the past century, nearly 105,000 miners were killed on the job and another 100,000-plus have died from black lung disease. These workers accepted less in wage increases and pensions so that more money could be dedicated to their health care in retirement.
But as America’s coalfields face depression, companies are filing for bankruptcy and receiving approval to shed their retiree obligations. The United Mine Workers of America Pension Fund lost a significant portion of its value in the Great Recession. With approximately 13 retirees for every active union worker in the coal industry, the fund can’t rely on employee contributions to close its shortfall.
To address the financial pain of the situation, Sens. Joe Manchin (D-W.Va.) and Shelley Moore Capito (R-W.Va.) have introduced legislation—S1714, the Miners Protection Act of 2015—that would amend the Coal Act once again to allow retirees from recently bankrupt companies to get health care from the UMWA Health and Retirement Funds. The bill also would repurpose the balance of an existing appropriation to provide funding to shore up the pension plan. Rep. David McKinley (R-W.Va.) has introduced companion legislation in the House.
Knowing the dangers of the industry, Krug-Lewis also created a separate medical and hospital fund. Over the past century, nearly 105,000 miners were killed on the job and another 100,000-plus have died from black lung disease. These workers accepted less in wage increases and pensions so that more money could be dedicated to their health care in retirement.
But as America’s coalfields face depression, companies are filing for bankruptcy and receiving approval to shed their retiree obligations. The United Mine Workers of America Pension Fund lost a significant portion of its value in the Great Recession. With approximately 13 retirees for every active union worker in the coal industry, the fund can’t rely on employee contributions to close its shortfall.
To address the financial pain of the situation, Sens. Joe Manchin (D-W.Va.) and Shelley Moore Capito (R-W.Va.) have introduced legislation—S1714, the Miners Protection Act of 2015—that would amend the Coal Act once again to allow retirees from recently bankrupt companies to get health care from the UMWA Health and Retirement Funds. The bill also would repurpose the balance of an existing appropriation to provide funding to shore up the pension plan. Rep. David McKinley (R-W.Va.) has introduced companion legislation in the House.